Top Bitcoin Layer 2 Projects & Coins in 2025
Ethereum Layer 2 chains get all the headlines, but Bitcoin’s burgeoning Layer 2 ecosystem is growing, giving additional utility to the world’s leading cryptocurrency. Bitcoin isn’t just for HODLing anymore. Today’s top Bitcoin Layer 2 projects support speedy sends, smart contracts, and more.
In this guide, we’ll review the leading Bitcoin Layer 2 solutions that promise to make BTC more useful. We’ll also discuss Bitcoin Layer 2 coins as well as some of the challenges that the ecosystem faces going forward. Let’s dig in.
Editor’s Pick — Best Bitcoin Layer 2 Project
- Introducing the first Bitcoin L2 solution
- Allows users to trade BTC almost instantaneously
- Enhanced transaction security with ZK-proofs
USDC- ETH
- usdt
What Are Bitcoin Layer 2 Projects?
Bitcoin Layer 2 projects are protocols that build on the Bitcoin base layer. Alone, Bitcoin is an island. People can send BTC to each other or trade it on crypto exchanges, but the lack of features in the Bitcoin protocol limits other features that have become popular on other platforms.
By itself, there isn’t much you can do with Bitcoin. Bitcoin is also slow and expensive to use. The speed issue relates to the mining process and block times (one block every 10 minutes). The cost of using the network refers to the small block size. Users compete to include transactions in the next block by paying higher fees.
Bitcoin Layer 2 projects promise to change the speed, cost, and utility of Bitcoin. Some projects, like the Lightning Network, focus on speed and costs. Others expand the use cases for Bitcoin by supporting smart contracts.
As an ecosystem, Bitcoin L2 projects enhance Bitcoin’s scalability and deliver new ways to use Bitcoin in decentralized finance or real-world transactions. Some interact directly with the Bitcoin network, while others utilize a bridge to bring your Bitcoin onto a full-featured blockchain.
Top Bitcoin Layer 2 Projects in 2025
Bitcoin Layer 2 solutions span many use cases, with dozens of chains now live or launching soon. The Bitcoin Layer 2 projects listed below highlight some of the top projects in the space.
| Project | Native Token | Use Case |
|---|---|---|
| Bitcoin Hyper |  HYPER +17.00% |
Quicker and cheaper BTC transactions |
| Lightning Network |  BTC +0.09% |
Fast, cheap BTC payments |
| Stacks |  STX 1.38% |
Decentralized Finance |
| Merlin Chain |  MERL +10.70% |
DeFi and other dApps |
| Liquid Network | Asset issuance for Bitcoin | |
| Rootstock | Smart contracts and fast transactions | |
| Tectum | Fast, affordable BTC payments | |
| BEVM | EVM-compatible smart contract network | |
| Bitcoin Virtual Machine | Platform for launching specialized Bitcoin Layer 2 chains |
Bitcoin Layer 2 Projects Reviewed – What Do They Do?
Bitcoin Layer 2 protocols range from payment rails that make sending Bitcoin payments faster and more affordable to smart contract-capable platforms. Some L2 platforms also serve as a foundation for purpose-built L2 chains that share an architecture. Below, we review the leading Bitcoin Layer 2 projects.
1. Bitcoin Hyper (HYPER) – First SVM Bitcoin L2 for Fast, Cheap BTC Transactions
Bitcoin Hyper is a groundbreaking Bitcoin Layer 2 using an SVM rollup to batch transactions settled on Bitcoin. This enables near-instant, ultra-cheap BTC transfers while preserving native asset security. Early adopters can stake HYPER tokens from launch for 39% APY. Bridge demos and a block explorer signal strong progress, though ZK-proof finalization remains a development milestone.
The network currently operates in presale with staking live, trading trustless canonical BTC bridging for wrapped assets. Roadmap phases include mainnet deployment, DeFi integration, and ZK-rollup security finalization – positioning HYPER as a potential backbone for Bitcoin’s DeFi ecosystem.
Pros
- Enables Bitcoin-native DeFi
- First SVM-powered Bitcoin rollup
- 39% APY staking at launch
- Trustless BTC bridging
Cons
- ZK circuit finalization pending
- Throughput limited by Bitcoin L1
- Mainnet deployment timeline risk
| Layer 2 Project | Bitcoin Hyper |
| Number of Users | Approximately 18,000 to 20,000 holders |
| Native Token | HYPER |
| Key Features | Make faster and cheaper transactions using BTC |
2. Lightning Network (BTC) – Fast, Affordable BTC Transactions Using Payment Channels
The Lightning Network may be the best-known Bitcoin L2. Launched in 2018, the project serves as a high-speed payment rail for native Bitcoin transactions. Under the hood, the Lightning Network uses payment channels, which work like roadways where BTC can move back and forth. Transactions settle on the BTC blockchain when the payment channels are closed. Node operators facilitate payments between Alice and Bob, and many nodes are well-connected, making payments to additional parties much easier.
Transaction times for Lightning payments are near instantaneous, and the network is in use with leading Bitcoin apps like Strike and Cash App. Coinbase recently added support for Lightning Network payments as well.
Pros
- Lightning-fast transactions
- Transaction costs of pennies or less
- Supported by payment apps like Strike and Cash App
Cons
- No native support for smart contracts
- Opening and closing channels can be expensive
- Varying transaction costs by node
| Layer 2 Project | Lightning Network |
| Number of Users | An estimated 8.2 million users worldwide |
| Native Token | BTC |
| Key Features | Send or receive Bitcoin instantly with low fees |
3. Stacks (STX) – Brings Smart Contract Capability to Bitcoin
The Stacks Network is a Layer 1 blockchain, although it indirectly uses Bitcoin’s base layer for transaction finality. This smart contract-capable chain uses Proof of Transfer (PoX) to secure transactions as users bridge bitcoins onto the platform. While BTC secures the network, Stacks uses a native token (STX) as fuel for the network.
Smart contracts on stacks use the Clarity programming language, which brings one specific advantage over EVM-compatible platforms: Clarity smart contracts can read the state of transactions on the Bitcoin blockchain. This means BTC transactions can act as switches for smart contracts on Stacks. Apps range from DeFi to NFTs to SocialFi.
Pros
- Able to read Bitcoin chain transaction data
- Efficient proof-of-exchange validation
- Provides access to DeFi apps using a Bitcoin equivalent token
Cons
- No EVM support, requiring custom-built apps
| Layer 2 Project | Stacks |
| Number of Users | 122,000+ active monthly users |
| Native Token | STX |
| Key Features | Smart contract support with connectivity to Bitcoin blockchain transactions |
3. Merlin Chain (MERL) – Supports a Bitcoin-Native App Ecosystem and Ordinals
The Merlin Chain’s EVM compatibility makes it easy for popular applications to migrate to the platform. It also eases the user experience for those already familiar with EVM apps. Live apps center on DeFi, although you’ll also find a range of dApps for NFTs, SocialFi, gaming, and AI.
Merlin supports BRC-20 tokens and Ordinals, giving users access to the growing market for Bitcoin tokens. Transactions are processed using Zero-Knowledge (ZK) rollups and sent to the Bitcoin blockchain for security. The chain supports BTC swaps for ETH-based assets and bridging to and from the Bitcoin L1 blockchain.
Pros
- Wide range of dApps, including DeFi
- Uses ZK-rollups for efficient computation on Merlin Chain
- Transactions secured by Bitcoin
Cons
- Ordinals can be difficult to use
| Layer 2 Project | Merlin |
| Number of Users | 1.9 million unique addresses |
| Native Token | MERL |
| Key Features | Support for Ordinals, BRC-20, and BRC-420 tokens |
5. Liquid Network (LBTC) – Scaling Network That Supports the Issuance of Security Tokens and Digital Assets
The well-established Liquid Network launched in 2018 and operates as a sidechain for the L1 Bitcoin network. Initially created by Blockstream, it has become a hub for issuing tokens. Built-in privacy features obscure transaction amounts on the Liquid’s Elements blockchain.
Users deposit Bitcoin using a bridge to use the sidechain and receive L-BTC in return. Due to its 1:1 exchange rate when bridging in and out, L-BTC acts as a BTC equivalent in transactions. The Liquid Network’s growth began in 2020, when the platform first reached 2,500 L-BTC tokens in circulation. Today, nearly 4,000 L-BTC tokens provide liquidity on the chain.
Pros
- Two-minute settlement time for bridged Bitcoin (L-BTC)
- Confidential transactions by default
- Supports tokens that can represent fiat currencies or other cryptocurrencies
Cons
- Costly transaction fees to peg in or out of L-BTC
| Layer 2 Project | Liquid Network |
| Number of Users | Unknown |
| Native Token | L-BTC |
| Key Features | Well-suited to the tokenization of assets. |
6. Rootstock (RBTC) – EVM-Compatible Smart Contract Platform with Bitcoin’s Security
Developed by RSK Labs, Rootstock provides an EVM-compatible blockchain that’s faster and more affordable than both Ethereum and Bitcoin but uses Bitcoin merged mining for security. Merged mining refers to mining multiple coins simultaneously using compatible algorithms. More than half of the Bitcoin mining hash power also merge-mines the Rootstock (RSK) chain.
Nearly 3,000 BTC provide liquidity on the platform as a bridge token (RBTC). Bridged tokens are secured using proof of work using a system RSK calls Powpeg, making them censorship-resistant, as there is no intermediary. RSK also offers an Ethereum bridge, adding liquidity to the chain.
Pros
- EVM-compatible platform
- Secured by PoW using merged mining
- Censorship-resistant bridging
Cons
- Complex for new users
| Layer 2 Project | Rootstock |
| Number of Users | Unknown |
| Native Token | RBTC (bridged BTC) |
| Key Features | EVM-compatible blockchain for easy portability of popular EVM dApps |
7. Tectum (TET) – Ultra-Fast Scaling Solution Claiming to Be Capable of 1 Million Transactions per Second
Tectum has an incredibly fast transaction processing speed, boasting up to 1 million transactions per second. The blockchain uses a proof-of-utility consensus mechanism for validating and processing transactions, which helps the chain achieve incredible throughput. Users can earn a yield by staking TET, the native token, which pays passive crypto income with up to 20% yields.
While Tectum is a Layer 1, the chain can also support other chains, like Bitcoin. This allows users to bring liquidity from a variety of sources to utilize Tectum’s fast and affordable transactions. The platform’s signature product, SoftNotes, allows users to fund a virtual pool that can be sent to anyone electronically or even printed out on paper. SoftNotes are backed by Bitcoin or any other asset used to provide liquidity for the note.
Pros
- Tectum acts as an overlay network for other networks like Bitcoin
- Peer-to-peer transfers occur off-chain
- Private transactions with zero-fee sends
Cons
- SoftNote recipients pay a fee of up to 1%
| Layer 2 Project | Tectum |
| Number of Users | Unknown |
| Native Token | TET – used to mint SoftNotes |
| Key Features | SoftNotes provides fee-free sending of BTC; TET required for minting |
8. BEVM (BEVM) – EVM-Compatible Layer 2 That Uses Bitcoin for Gas Fees
BEVM offers EVM compatibility, making it easy to launch EVM projects. However, the chain uses BTC for gas fees. The chain uses proof of stake consensus to secure transactions and supports up to 1,000 consensus nodes to decentralize transaction validation.
The network is growing quickly, with a community of nearly 800,000 users worldwide. However, like many early-stage blockchains, BEVM is very much a work in progress. Planned features include a Decentralized Bitcoin FX Protocol, a method of bringing Bitcoin onto other chains. Existing dApps include decentralized exchanges, liquid staking for BTC, and perpetual futures trading for the leverage trading fans on the chain.
Pros
- Compatible with MetaMask and similar ETH-ecosystem wallets
- Supports the Solidity programming language used with Ethereum
- Larger user base of 800,000 users
Cons
- No token native token for the blockchain; BTC gas fees
| Layer 2 Project | BEVM |
| Number of Users | 800,000+ |
| Native Token | BTC |
| Key Features | EVM-compatibility with Solidity support |
9. Bitcoin Virtual Machine (BVM) – Creates a Bitcoin Alternative to EVM and Supports Rune Trading
Bitcoin Virtual Machine provides infrastructure for Bitcoin Layer 2 projects and is home to RuneChain, a budding Bitcoin-based token standard. By using a dedicated chain, transaction fees related to Runes tokens can be greatly reduced. Expect to see additional protocols arise around these popular tokens, including DeFi platforms and more ways to trade Runes.
While RuneChain garners the most attention, Bitcoin Virtual Machine can provide infrastructure for a wide variety of specialized Bitcoin Layer 2 chains.
Pros
- EVM compatible
- Provides customizable infrastructure for L2 specialized chains
- Low transaction fees
Cons
- Tricky onboarding
| Layer 2 Project | Bitcoin Virtual Machine |
| Number of Users | Unknown due to multiple chains |
| Native Token | BVM |
| Key Features | Support for adding specialized L2 chains, including DEX platforms, AI, and token minting |
What Are The Biggest Bitcoin L2 Coins?
For investors, Bitcoin Layer 2 projects provide an opportunity to invest in native tokens. The Bitcoin Layer 2 coins list below highlights some of the largest coins in this niche by market capitalization.
| Coin | Market Cap | Use Case |
|---|---|---|
| Stacks (STX) | $462.95M | STX is the fuel token for the chain, and “stacking” is the term for staking on the STX chain. |
| Core (CORE) | $0.00 | CORE powers Bitcoin DeFi via EVM compatibility. |
| sBTC (SBTC) | $0.00 | sBTC powers Bitcoin DeFi via synthetic tokens. |
| Merlin Chain (MERL) | $907.36M | MERL is used for the Merlin Chain’s governance, staking, and transaction fees. |
| Elastos (ELA) | $31.06M | ELA powers a safer internet via decentralization. |
In the following few sections, we will dive deeper into the main characteristics of the top 5 Bitcoin Layer 2 projects, according to their market cap:
Stacks (STX)
Stacks STX 1.38% acts as fuel for the popular Stacks blockchain, paying to move assets between wallets or execute smart contracts. STX also supports staking, allowing users to earn crypto passive income through what Stacks calls “Stacking” STX. Stacking supports network consensus and pays staking rewards in Bitcoin.
Core (CORE)
Core DAO 
CORE2 +0.00% This EVM-compatible Layer 1 blockchain leverages Bitcoin’s hash power for security.
The CORE token enables staking, decentralized governance voting, and validator elections. Users earn passive income by staking CORE and self-custodial Bitcoin staking. Core focuses on Bitcoin-powered DeFi. Future revenue sharing plans could further increase yield opportunities for CORE holders, enhancing utility.
sBTC (SBTC)
sBTC 
SBTC +0.00%This 1:1 Bitcoin-backed synthetic token unlocks Bitcoin’s liquidity on Stacks L2. sBTC enables decentralized DeFi participation, like lending and trading, without custodians.
A decentralized signer set (requiring 70% consensus) manages trustless peg operations secured by Bitcoin’s Proof of Transfer. Users retain Bitcoin’s security while accessing smart contracts. This mechanism unlocks Bitcoin’s trillion-dollar latent capital in a censorship-resistant way, operating directly on Bitcoin L1.
Merlin Chain (MERL)
The MERL +10.70% token for the Merlin Chain serves three key functions: governance, staking, and fuel. MERL tokens pay for gas fees on the Merlin Chain, allowing users to preserve their Bitcoin for other uses, including lending or using BTC as collateral in DeFi applications.
The token is central to the largest airdrop campaign of any Bitcoin Layer 2 project, distributing $40,000 MERL tokens to qualified wallets.
Elastos (ELA)
Elastos 
ELA 0.50% powers the BeL2 Bitcoin Layer 2 protocol, enabling smart contracts. It facilitates non-custodial Bitcoin staking through locking scripts, letting users earn BTC-denominated yields.
ELA secures Arbiter nodes that verify transactions via Zero-Knowledge Proofs. Malicious actors face penalties, ensuring network integrity. This transforms dormant Bitcoin into productive DeFi collateral while preserving Bitcoin’s base-layer security and user sovereignty through cryptographic proofs. Passive income originates from BTC staking rewards.
The Bitcoin network’s average throughput is about seven transactions per second. Transactions are assembled into blocks, and miners compete to find a qualifying hash (encrypted value) to mine the next block of transactions. Transactions that don’t make it into a block due to lower transaction fees end up in the mempool, a waiting room of sorts. While incredibly secure, Bitcoin is slow.
The Bitcoin network is also expensive to use. Small transactions become impractical as the transaction fees can be higher than the transaction value. Bitcoin Layer 2 projects address Bitcoin’s scalability issues while also bringing faster and cheaper transactions.
✅ Improved Scalability
Layer 2 protocols handle transactions off-chain (or on their own chain) to allow faster transactions and avoid the bottleneck that occurs on the base (Layer 1) Bitcoin network. This allows higher throughput, allowing more transactions to pass through at a lower cost.
For example, the Lightning Network uses payment channels to process Bitcoin transactions off-chain. In theory, the network can handle billions of transactions per second. Tectum, a Layer 1 that can be a Layer 2 for other chains like Bitcoin, can process 3.5 million transactions per second. This makes Tectum one of the fastest blockchains ever created.
Scalability measures how many users can efficiently utilize the network. Bitcoin doesn’t scale well on its own, and other popular chains like Ethereum face a similar challenge. Layer 2 projects allow more users to make transactions at the same time while also saving on transaction costs.
✅ Lower Transaction Fees
Fees to transact on the Bitcoin network currently average $3.68 but can spike much higher during periods of higher demand.
Fees on the Lightning Network also vary depending on which node you choose, but make Bitcoin transactions much more affordable. However, the Lightning Network still doesn’t provide a perfect solution.
It can be complicated (and expensive) for users to open payment channels, but the network remains viable for larger peer-to-peer transactions. Lightning allows peer-to-peer BTC transactions for about 0.0029%, including a base fee determined by the node operator.
Tectum, on the other hand, has an average transaction cost of less than $0.01, putting its transaction costs on par with Solana (a Layer-1) or Ethereum Layer-2 projects like Base and Arbitrum. What sets Tectum apart is its SoftNote wallet, which allows users to send Bitcoin or other crypto assets for free using SoftNotes.
✅ Faster Transactions
The Bitcoin network produces new blocks about ten minutes apart. If you’re lucky and your transaction is posted to the mempool just before a block is mined, you might see a quicker transaction time. Transactions with lower fees might stay in the mempool until the higher-fee transactions clear. While regarded as the most secure blockchain, no one can say Bitcoin is fast.
Bitcoin Layer 2 projects can process transactions much faster because they don’t need to use the Bitcoin blockchain for every transaction. Lightning Network transactions, for example, don’t settle on Bitcoin’s base layer until the channel is closed. In the interim, users can send BTC to each other or connected parties nearly instantaneously.
Tectum can also complete transactions instantly. A recent network test pushed more than 51 million transactions through the blockchain in under 15 seconds. The test included SoftNotes, Tectum’s innovative way to send Bitcoin or other crypto assets through the network.
While Bitcoin Layer 2 projects help scale Bitcoin or allow users to utilize their BTC in decentralized finance (DeFi), they also face some challenges. Layer 2 projects can be more complex and may introduce additional security risks. It’s also essential to consider liquidity on these platforms. Fewer users can affect the ability to make transactions.
❌ More Complex to Use
The most trusted Bitcoin wallets, such as Sparrow and Electrum, aren’t known for their simplicity. A plethora of Bitcoin-specific features make these wallets both powerful and difficult for newbies to grasp. The jump to Bitcoin Layer 2 protocols doesn’t simplify the process. Now, users need to navigate through the intricacies of a Bitcoin wallet while also learning how to use the wallet and features for the Layer 2 ecosystem.
Unlike Ethereum Layer 2 projects, Bitcoin Layer 2 protocols don’t work the same way as the base chain. An Ethereum user can instantly use Abitrum, Base, or any other Layer 2 intuitively. Bitcoin Layer 2 often requires learning a new set of tools.
❌ Security Risks for Each Layer 2 Project
Additional blockchains and the decentralized applications that run on these chains also bring additional security concerns. Smart contracts and even tokens on these chains might have exploited vulnerabilities, and the networks themselves may have undiscovered vulnerabilities.
❌ Smart Contract Vulnerabilities
Smart contracts are computer programs that run on the blockchain. Many of the most popular smart contracts in the Ethereum ecosystem are well-tested and have been audited several times over. However, the smart contracts on Bitcoin Layer 2 chains may not have seen the same level of scrutiny.
❌ Less Network Security
Most Bitcoin Layer 2 projects don’t use Bitcoin’s network to secure transactions. Instead, transactions are secured on the Layer 2 chain, but users can bridge bitcoins back and forth between the L1 and L2.
❌ Liquidity Issues
Liquidity refers to the ability to transact easily. In simple terms, there’s a way to trade, borrow, or swap with a willing market. Bitcoin Layer 2 solutions don’t yet enjoy the same level of liquidity you’ll find on leading Ethereum Layer 2 chains. The problem centers on the lower number of users.
If you want to borrow on a DeFi app, there may not be enough lenders. Decentralized exchange swaps can also suffer price disconnects due to low liquidity. Worst of all, you may not be able to exit a position due to low liquidity.
Many Layer 2 chains use a bridge feature. Generally, these require a Bitcoin deposit, which is then replaced with an equivalent token on the Layer 2 chain. Bridges bring their own security concerns. However, if users start to bridge out of the chain en masse, the liquidity for dApps on the platform will also suffer.
What Is the Future of Bitcoin Layer 2 Projects?
Going forward, Bitcoin Layer 2 projects will help bridge the gap between Bitcoin and traditional finance, allowing people to transact in Bitcoin rather than fiat currencies. Projects like Tectum make it easier for merchants to accept Bitcoin transactions using SoftNotes.
L2 projects for Bitcoin will also open more opportunities for decentralized finance. For example, users can borrow against their Bitcoin or an equivalent bridge token backed by Bitcoin without using an intermediary.
However, dozens of Bitcoin L2 projects already exist, and not all of these networks will thrive. Over time, the best ideas will be adopted by the leading L2 projects. Expect to see a consolidation of both ideas and networks as the market sorts out the winners and losers.
Conclusion
On its own, Bitcoin is slow and costly to use, a tradeoff for its unparalleled security. Bitcoin Layer 2 solutions promise to make Bitcoin faster and more useful while reducing costs. However, these solutions still have a long way to go in reaching the level of adoption enjoyed by Ethereum Layer 2 projects.
The ecosystem is growing quickly, though, and many prefer a Bitcoin-based economy over Ethereum or other assets. The market provides room for both, and innovation on each side can benefit the crypto space by providing more options and letting the market choose.
Among the emerging contenders, Bitcoin Hyper is our top choice for a Bitcoin L2 solution, offering a compelling blend of scalability, security, and user-centric features. However, the ecosystem is growing quickly, and many prefer a Bitcoin-based economy over Ethereum or other assets. The market provides room for both, and innovation on each side can benefit the crypto space by providing more options and letting the market choose.
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