In its series A round headed by Franklin Templeton and ABCDE, Bitlayer claims to have raised $11 million, bringing its total funding to $16 million.
Layer-2 solution with an emphasis on Bitcoin In order to extend the range of supported protocols, Bitlayer has raised $11 million in a Series A fundraising round led by Franklin Templeton and ABCDE. BitVM is the ecosystem that Bitlayer is developed on top of, enabling the execution of smart contracts on the Bitcoin network.
The new funding is anticipated to support Bitlayer’s development of its Web3 platform, which runs on top of BitVM. This system enables smart contracts in the Bitcoin ecosystem, even if the company’s worth is not made public.
BMAN, the managing partner of ABCDE Capital, commented on the funding and said Bitlayer’s unique position in amassing over $500 million in total locked value with almost 300 projects highlights its critical role in the Bitcoin network. BMAN added in a Tuesday press release:
“As it realizes native verification on Bitcoin, Bitlayer will become the first native Bitcoin layer-2, a seminal moment in the history of Bitcoin”
With the new funding, Bitlayer hopes to implement the Web3 protocols that were created especially for it in order to grow its ecosystem. The money will also be used to create Bitlayer’s Mainnet-V2, a rollup that is native to Bitcoin and has layer-2 state transition “guarded by a Bitcoin-friendly proof system that combines both ZK and fraud proofs,” according to the press release.
The Bitcoin-based ecosystem of the decentralized finance sector could amass hundreds of billions of dollars in liquidity through Web3 protocols, according to a February projection made by the massive venture capital firm Pantera Capital, which focuses on cryptocurrency.
This is especially true if it manages to attain market shares comparable to those on the Ethereum blockchain. Historically, decentralized applications on Ethereum have made up 8% to 50% of the platform’s market capitalization; as of right now, that percentage is approximately 25%.
Pantera Capital predicts that the value of Bitcoin might increase by about $225 billion based on these proportions. Stake Capital Group, WAGMI Ventures, Skyland Ventures, and GSR Ventures, among others, supported the fundraising, the startup disclosed in the announcement.
