- Justin Sun proposes a Bitcoin-based layer 2 solution to merge TRON and BTC, improving interoperability between networks.
- Bitcoin’s LTV exceeds $1 billion driven by Merlins Seal event, highlighting DeFi’s growth in Bitcoin.
Justin Sun, mastermind behind Tron, recently brought to light his blueprint for a new layer 2, Bitcoin-based solution, marking another intriguing chapter in the cryptocurrency saga.
On February 15, Sun shared on X (the platform formerly known as Twitter) its vision for more tightly intertwining the TRON network with Bitcoin. Imagine this: a network where different types of tokens, especially stablecoins totaling up to $55 billion in Tron, move freely alongside Bitcoin. Yes, Sun is betting on unprecedented interoperability.
“We will mix, in creative ways, TRON tokens and stablecoins within the vast Bitcoin network and its layer 2 developments, such as Bitcoin Ordinals,” Sun said.
While the details are still a mystery, TRON has outlined a fascinating three-stage journey for this layer 2 solution with Bitcoin.
First, imagine a cross-technology bridge linking TRON tokens directly with Bitcoin. At the same time, Tron DAO will dive into the world of Ordinals and other layer 2 solutions, powering friendly wallets and tools for BRC-20 tokens.
Next, comes collaboration with different Bitcoin layer 2 protocols, opening the doors for TRON users to dive into staking through these BTC-based networks.
And for the grand finale, TRON, together with BitTorrent Chain (BTTC) and Bitcoin, will launch a layer 2 solution. Most strikingly, this solution promises to be Bitcoin-compatible and will combine the efficiency of a POS blockchain with the security of POW networks.
Bitcoin’s LTV soars
Now, let’s talk about Bitcoin. Its TVL just broke the $1 billion barrier, an achievement that does not go unnoticed.
According to DeFiLlama, Bitcoin’s TVL has seen a nearly 300% jump in just one week, reaching $1.232 billion. Not only is this impressive, but it puts Bitcoin in the top 6 networks by TVL, surpassing giants like Cardano and Avalanche.
This explosive rise is due, in large part, to Merlin Chain’s Merlins Seal event, a Bitcoin-native layer 2 development. With the launch of its MERL token, users were incentivized to block assets, totaling more than $800 million wagered since February 9.
This moment is crucial, demonstrating the strengthening of DeFi activities in Bitcoin and securing its prominent place in the crypto ecosystem.
So what do you think, are we witnessing the dawn of a new era of interoperability and growth in the crypto world thanks to initiatives like Justin Sun and the rise of Bitcoin in the DeFi arena? The answer, while still being written, promises to be fascinating.
