Bitlayer protocol
Overview
Bitlayer is a Bitcoin Layer 2 network that uses BitVM technology to add scalability and programmability to Bitcoin. Its website presents yBTC (yield-bearing Bitcoin) as the flagship asset, and as displayed in July 2026 reports $3M+ in yBTC TVL, $3M+ of deposited BTC, 30K+ users and $360M+ in daily trading volume. The project markets itself as multichain, with a bridge for moving assets, a block explorer, testnet, multisig wallet and developer documentation. Bitlayer claims mining-pool partners representing 36% of Bitcoin hashrate. On funding, its site names Polychain Capital and Franklin Templeton as co-leads, with Framework Ventures, ABCDE, OKX and 20+ other institutional investors participating. Note that the headline TVL figure is small relative to the trading-volume claim, so the two metrics measure very different things. Bitlayer's public positioning has centred on BitVM — a scheme for expressing arbitrary computation verifiable on Bitcoin — as the basis for its Layer 2, alongside a bridge and a yield-bearing BTC product.
Within the DeFi Intel graph, Bitlayer connects to 8 tracked entities, most strongly to Bitcoin, Bitcoin, Bitcoin.
Relations
Top connections in the DeFi Intel knowledge graph (confidence-weighted, 8 of 8 total).
| Relation | Connected entity | Confidence |
|---|---|---|
deployed_on | Bitcoin | 85% |
settles_to | Bitcoin | 85% |
layer2_of | Bitcoin | 85% |
backed_by | Polychain Capital | 85% |
uses | BitVM | 85% |
backed_by | Franklin Templeton | 85% |
backed_by | Abcde | 85% |
backed_by | Framework Ventures | 85% |
Frequently asked questions
What is Bitlayer?
Bitlayer is a bitvm-rollup tracked in the DeFi Intel knowledge graph. It is connected to 8 other tracked entities, most strongly to Bitcoin, Bitcoin, Bitcoin.
What type of entity is Bitlayer?
Bitlayer is classified as a bitvm-rollup (protocol) in the DeFi Intel knowledge graph.
What is Bitlayer connected to?
In the DeFi Intel knowledge graph, Bitlayer is linked to 8 other tracked entities, most strongly to Bitcoin, Bitcoin, Bitcoin.
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