Ethereum R1 is a new donation-funded, tokenless Layer 2 rollup designed to offer a decentralized, censorship-resistant, and governance-minimized scaling solution for Ethereum

The S&P 500 rose 0.63% Thursday, boosted by strong Meta and Microsoft earnings, but futures slipped Friday as investors awaited the April jobs report and weighed Apple and Amazon tariff concerns. Gold fell to $3,235 as easing trade tensions cut safe-haven demand; markets await US jobs data for rate cut signals. The Coindesk Indices, which tracks the broader crypto market, rose 2.19%, with Bitcoin and Ether up 2.57% and 2.60%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is AR, which gained 16.8% following CloneX's successful migration to Arweave, sponsored by ArDrive.

Arweave (AR), founded in 2017, is a decentralized network for permanent data storage, using blockweave and Proof of Access to ensure long-term accessibility. It offers 200-year storage for a one-time fee, incentivized by AR tokens for miners. The system connects blocks efficiently to preserve and retrieve data, aiming to create a lasting digital knowledge repository. CloneX has successfully 

 to Arweave for permanent storage, with the support of ArDrive, which sponsored the migration of 100 GB of data. The process is nearly complete, with only Animus remaining to undergo decentralization.

Check out the latest prices, charts, and data of 

 is a new donation-funded, tokenless Layer 2 rollup designed to offer a decentralized, censorship-resistant, and governance-minimized scaling solution for Ethereum. Built on open-source code and the Nethermind Surge stack, it emphasizes credible neutrality, public good funding (with all fees burned after 2030), and infrastructure that remains free from VC control or centralized dependencies.

Yesterday, BTC spot ETFs saw $71.1M in total inflows, with $16M from GBTC and $55.1M from other ETFs.

 $BOOP tokens to active Solana memecoin traders and creators who promote memecoins or Solana dapps on X. To claim, users must connect their Solana wallet or X account and launch a free token. The airdrop arrives in 30 days, but growing the token’s market cap can accelerate the reward.

Beginner

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Ethereum R1 offers a decentralized rollup solution for Ethereum

This article dives into Bitcoin liquid staking protocol Lombard Finance, how LBTC works and how you can stake LBTC through Bybit Web3.

Bitcoin stands as the undisputed giant of the cryptocurrency space, commanding the largest market capitalization. Yet, much of its potential remains untapped, often sitting idle as a store of value rather than actively participating in the thriving 

 ecosystem. Lombard Finance aims to change this narrative by unlocking Bitcoin's utility and integrating it seamlessly into DeFi.

Lombard is built upon Babylon, the innovative Bitcoin staking protocol, and is incubated by Polychain Capital. Lombard’s flagship product, 

 (LST) for BTC. This article explores what Lombard Finance is and how LBTC works, and describes the Lombard ecosystem and how you can stake LBTC through Bybit Web3.

 is a liquid staking protocol that focuses on transforming 

's role in the digital economy. Its core mission is to evolve BTC from simply being a store of value — also viewed as 

 — into a productive asset that actively generates yield and participates within DeFi. Currently, a significant portion of Bitcoin's

 sits idle, lacking the native staking capabilities or cross-chain composability seen with assets such as 

Lombard Finance addresses this shortcoming by building on top of 

, a protocol that supports BTC staking without needing 

 or custodians. Babylon allows Bitcoin's economic weight to secure other 

 (PoS) chains and applications, creating a new yield source for holders. Lombard leverages this foundation to offer LBTC, making staked BTC liquid and usable across the DeFi market.

Lombard’s goal is ambitious: to channel Bitcoin's vast liquidity into DeFi. This could potentially double the ecosystem's 

 (TVL) if even a fraction of available BTC is introduced. Lombard believes this integration will catalyze significant growth and create more sustainable market dynamics by making BTC a core, yield-bearing primitive within DeFi.

Founders and investors of Lombard Finance

Lombard Finance was founded in April 2024 by a team with deep expertise within DeFi, drawing talent from established crypto projects like Polychain, Babylon, Argent, Coinbase and Maple. This collective experience underpins the protocol's design and strategic direction.

The project was notably incubated by Polychain Capital, a prominent crypto investment firm that also led Lombard's $16 million seed funding round (which was 

 in July 2024). This round saw participation from a wide array of significant players in the crypto space — including Babylon, dao5, Franklin Templeton, Foresight Ventures, HTX Ventures, Mirana Ventures, Mantle EcoFund, Nomad Capital, OKX Ventures and Robot Ventures — thus highlighting broad industry confidence in Lombard's vision. Strategic partnerships and contributions from exchanges like

 and Bitget are further bolstering its distribution and liquidity aggregation efforts.

LBTC is Lombard Finance's flagship product — a liquid staking token (LST) that represents Bitcoin staked through the Babylon protocol. Designed as a universal liquid BTC standard, LBTC is fully backed 1:1 by native Bitcoin, ensuring its value is directly tied to the underlying asset.

The token is yield-bearing, capturing rewards generated from securing PoS networks via Babylon staking. Crucially, LBTC remains liquid, meaning holders can freely use it across various DeFi applications — such as 

 and automated vaults — without sacrificing their underlying staked positions or associated yield.

LBTC is also designed for cross-chain compatibility, natively minted on supported blockchains like Ethereum, Base and Sui and using secure infrastructure [such as 

]. This avoids the risks associated with traditional bridging or wrapping methods, thus aiming to provide a more secure and seamless way to utilize Bitcoin across the multichain DeFi ecosystem.

Lombard Finance simplifies the process of putting Bitcoin to work within DeFi through its LBTC token. The mechanism is designed with security and user experience in mind, leveraging the Babylon protocol and a robust Security Consortium.

The core benefit of LBTC lies in its ability to unlock multiple layers of value simultaneously. Holders earn native yield from Babylon staking, potentially accrue additional rewards (such as Lombard Lux points) and gain access to diverse DeFi yield opportunities, all while maintaining the liquidity of their Bitcoin position. This transforms BTC from a static asset into a dynamic, yield-generating component of the DeFi ecosystem.

Lombard Finance is actively building a wide LBTC ecosystem that already boasts over 75 DeFi integrations. Security is foundational, anchored by the 14-member Security Consortium (including prominent names like Galaxy and OKX Ventures) and validating all critical operations alongside audits and bug bounties.

Core infrastructure relies both on Babylon for staking, and on the Chainlink CCIP for secure cross-chain movement, with EigenLayer integration 

. LBTC integrates with leading DeFi applications across lending platforms (e.g., 

) and automated vaults. The platform supports multiple blockchains (including Ethereum, Base, Sui, BNB Chain) and 

 (L2s), positioning LBTC as a versatile cross-chain asset.

Here's how you can stake BTC on Lombard and use LBTC in DeFi and automated vaults.

Lombard Finance (via its LBTC token) offers a compelling way for Bitcoin holders to put their assets into use, earn yield via Babylon staking and gain exposure to the expansive DeFi ecosystem — all while maintaining liquidity. Incubated by Polychain Capital and supported by a robust consortium and growing partner network, Lombard is positioning LBTC as a secure and versatile liquid Bitcoin standard.

It’s easy to participate in the Lombard ecosystem through 

, you can utilize your Bybit Web3 Seed Phrase Wallet to stake BTC and mint 

, Lombard's vault token that represents deposits in automated yield strategies. This provides you with a seamless gateway to access Bitcoin liquid staking and DeFi yields.

Ready to unlock your Bitcoin's potential? 

Intermediate

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Lombard Finance: Polychain-backed Bitcoin liquid staking protocol

The cryptocurrency market has entered a phase reminiscent of past altcoin seasons, primarily driven by Bitcoin's recent rebound to the $94K–$96K range. 

Altcoin season might have come with reviveding speculation 

The cryptocurrency market has entered a phase reminiscent of past altcoin seasons, primarily driven by Bitcoin's recent rebound to the $94K–$96K range. This resurgence has sparked renewed interest among retail traders, shifting focus from Bitcoin to smaller, more speculative altcoins. The overall market saw a 10% increase in value during the final eight days of April, contrasting with Bitcoin's 7% gain. This trend indicates a growing appetite for risk among investors, particularly in meme coins, which have seen a surge in social media discussions.

However, caution is warranted as elevated crowd enthusiasm often precedes market corrections. Historical patterns suggest that when buzzwords like "altseason" are dominating discussions, it may signal an impending price exhaustion. The current market dynamics reflect a shift toward speculative investments, raising concerns about the sustainability of this enthusiasm.

Bitcoin's bullish sentiment substantially improves

Bitcoin's position as the leading cryptocurrency has remained steady, with discussions around its price fluctuating significantly. Following a period of pessimism, when predictions dipped as low as $10K–$69K, sentiment shifted dramatically with the price recovery. Now, optimistic projections of $100K–$159K are dominating conversations, indicating a reversal in trader sentiment.

Despite Bitcoin's consistent presence in market discussions (approximately 25% of asset topics), the ratio of bullish-to-bearish commentary has grown increasingly favorable. This suggests a growing confidence among traders bolstered by Bitcoin's recent performance. However, it’s essential to monitor whether this bullish sentiment translates into sustained investment, or if it leads to overconfidence that may trigger a market pullback.

Ethere, once a robust contender in the altcoin arena, has struggled to regain retail investor confidence despite recent bullish commentary and promises of innovation from co-founder Vitalik Buterin. Its social media presence has dwindled to about 6–7% of discussions, a significant drop from previous years. This decline highlights the challenges Ethereum faces in re-establishing itself as a go-to investment in a market increasingly dominated by speculative assets.

Conversely, XRP has seen a notable increase in optimism surrounding ETF approvals, with expectations rising to 85%. This shift reflects a broader trend of institutional interest in cryptocurrencies, potentially paving the way for significant capital inflows. Meanwhile, Dogecoin's potential ETF listings have sparked renewed interest, transforming its image from that of a meme coin to a legitimate investment option. The growing dialogue surrounding institutional adoption of Dogecoin and XRP indicates a pivotal moment for these assets, suggesting they may play critical roles in the evolving cryptocurrency landscape.

Advanced

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Bybit x Santiment social sentiment report: Altcoin sentiment recovers despite Bitcoin’s resilience

Bybit Spread Trading allows traders to simultaneously buy and sell two related instruments in order to hedge risk or profit from price discrepancies. Read more.

Whether markets are flying high or wobbling unpredictably, one thing remains true: traders are always looking for smarter ways to 

 and find profit opportunities. That’s where Bybit Spread Trading comes in. This feature is tailor-made for those who want to go beyond basic buy/sell plays and start taking advantage of price discrepancies between related instruments. In this guide, we’ll walk through exactly how Bybit Spread Trading works, why it matters and how you can start using it today, whether you’re 

is a newly launched Bybit feature that allows users to simultaneously buy and sell two related instruments — such as Spot, Perpetual or Expiry contracts with different settlement dates — in order to hedge risk or profit from price discrepancies.

This type of trading strategy is popular among institutional and professional traders because it enables more precise, controlled market exposure. However, with Bybit’s interface, the barrier to entry is significantly lowered, opening the door for individual traders to tap with just a few clicks into a powerful set of tools.

At its core, Spread Trading on Bybit is about executing what’s called a combo trade. This means entering two positions at once: one long, one short. These positions are taken on related instruments, such as a BTC Spot trade and a BTC Perpetual contract, with the idea that their prices will either converge or diverge in a way that benefits your position.

When you place a buy combo, you’re buying the instrument with the longer expiration (the “far leg”) and selling the one that expires sooner (the “near leg”). 

A sell combo is the reverse: selling the far leg and buying the near leg. The profit (or loss) comes from how the spread between these two instruments shifts over time.

For example, if you believe the spread between a Perpetual and a Quarterly Futures contract will widen, you can buy the combo. If the spread increases after your entry, that movement becomes your profit. Bybit calculates your 

 prices automatically, based on the mark prices and your defined “order price,” so there’s no need to manually crunch the numbers.

Perhaps the most important feature here is atomic execution. This ensures both sides of your combo trade are filled together, in equal quantities, or the trade doesn’t go through at all. It removes “leg risk,” which is the danger of getting filled on one side of the trade, but not the other. In volatile markets, that alone can save you from an unwanted mess.

Spread Trading on Bybit currently supports combinations such as Spot and Perpetual, Spot and Expiry, Perpetual and Expiry, or even two Expiry contracts with different dates. This flexibility lets you build strategies that align with different market outlooks — bullish, bearish or neutral.

There’s a strong reason why Spread Trading is a go-to for many experienced traders: it allows for strategic plays that are more sophisticated than just guessing price direction. On Bybit, it’s not only powerful, but also convenient.

First, you get price certainty. Your spread is locked in at the price you specify. There’s no 

 between legs because the entry prices are automatically calculated and matched. You’re trading the spread, not the individual legs.

Secondly, the trading experience is smoother. Instead of placing two separate orders and manually trying to sync them, Bybit handles everything as a single transaction. You don’t have to worry about whether one leg gets filled and the other doesn’t — that risk is eliminated through atomic execution.

Third, this setup is a great hedge against volatility. By taking opposing positions on two related contracts, you reduce exposure to sharp price movements. Your P&L becomes more about the relative performance between contracts, rather than the market direction itself.

There’s also a strong cost advantage. Trading spreads on Bybit is significantly cheaper than doing it manually. You pay only half the trading fees you’d incur if you placed two individual trades on the order book. For high-volume or 

, that translates to meaningful savings over time.

Finally, it unlocks strategy flexibility. Whether you're 

 funding rates between Spot and Perpetual, doing 

 with different Futures contracts or taking advantage of price convergence before expiry, this platform gives you the tools to execute those ideas efficiently.

How to get started with Bybit Spread Trading 

Now that you have a better understanding of how Bybit Spread Trading works, let’s look into how to get started. Please note that you’ll need to have a Bybit account in order to proceed. If you don’t already have one, please check out our 

 for more information on how to create a Bybit account.

: Log in to your Bybit account and hover your cursor over the 

: The available spreads are organized in a grid, with each tile representing a unique combo. Choose your preferred combo to trade.

Tiles with a border around them signify that Spread Trading offers a better price. Hover over a tile for more details, or use the bar at the bottom of the grid to explore more options.

On the order placement page, set up your order with the following parameters:

to place your order. A pop-up window will appear for you to confirm your order details. Then, click on 

Congratulations — you’ve successfully placed an order!

You can view your Spread Trading orders from any trading page (Spread Trading, Spot and Futures), as they all share the same order data.

 to view your active orders. You’ll be able to view the combo, underlying asset, order price and more. 

If you would like to adjust your order parameters, you may click on the pencil icon under 

. To cancel your order, simply click on the order’s corresponding 

to view your completed orders. To view each order’s information on each leg, click on the order’s corresponding 

button. For additional insights, click on 

Spread trading isn’t for everyone — but if you’re someone who enjoys strategic trading, hedging or arbitrage, it’s a tool worth adding to your arsenal. It appeals to traders who are less interested in taking a directional bet, and more focused on capitalizing on inefficiencies in the market.

You don’t have to be a pro trader to benefit, either. The simplified execution and intuitive UI mean even intermediate users can explore advanced strategies without being overwhelmed. As long as you understand how spreads work, and how your P&L is affected by their movement, you’re already halfway there.

More importantly, in times of market uncertainty or low volatility — when price action feels sluggish — spread trading gives you an alternative way to profit. It keeps you in the game — even when momentum plays aren’t cutting it.

Bybit Spread Trading is a powerful tool that combines simplicity with sophistication. Whether you're looking to hedge, save on fees or experiment with 

 strategies, it offers a clean and user-friendly way to do so. With lower risk, lower costs and plenty of flexibility, Bybit Spread Trading is a smart move for any trader looking to level up their game — especially when markets get messy.

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Bybit Spread Trading: Smart strategies for market swings

Bybit Learn

Bitcoin

Bitcoin Layer 2 solutions help with scaling by selecting the information they pass back and forth. Learn more about them here.

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Bitcoin's position as the most popular cryptocurrency can be both an advantage and a problem for it. The Bitcoin ecosystem is one of the most secure and dependable options available, but having so many people rely on the Bitcoin network can also lead to congestion. During busy times of day, transaction speeds slow and 

. One potential solution to this problem lies in Bitcoin Layer 2 technologies. Keep reading to find out how these scaling solutions work, and to discover the best current Bitcoin Layer 2 options.

A Bitcoin Layer 2 solution is a protocol that runs alongside the main Bitcoin chain. It improves Bitcoin's scalability, so the network can handle large amounts of transactions without a reduction in transaction speed or an increase in transaction prices.

How Does a Bitcoin Layer 2 Solution Work?

Bitcoin Layer 2 solutions are essentially independent blockchains that contain Bitcoin-compatible 

 and software. They have the ability to process transactions, just as the Bitcoin network does. A Layer 2 accepts and manages a variety of transactions, such as payments, trades and data storage. With Bitcoin, the Layer 2 system is connected to the main Bitcoin chain, so it passes the record of these transactions to Bitcoin and can pull data from Bitcoin when necessary. It runs alongside Bitcoin, and is constantly updating to stay in step with the main chain.

Bitcoin Layer 2 solutions help with scaling by being selective about the information they pass back and forth. Instead of processing every single transaction on Bitcoin, one at a time, a Bitcoin Layer 2 processes transactions off-chain and only sends essential information to the main Bitcoin chain. For example, a Bitcoin Layer 2 that handles payments might only store payment confirmations on Bitcoin, instead of using the network for every step of requesting, transferring and receiving the payment.

Some Layer 2s make transactions even more efficient by bundling together information and posting it on Bitcoin as a single block, as opposed to several individual statements. Others use special algorithms to encrypt and compress information into smaller transactions. These sorts of features reduce the computing power needed for multiple transactions, making the whole blockchain ecosystem more efficient.

Pros and Cons of Bitcoin Layer 2 Solutions

Bitcoin Layer 2 solutions are just one of many scaling options. Here's what you need to know about the pros and cons of Bitcoin Layer 2 designs.

Bitcoin Layer 2 networks come with the following advantages:

Bitcoin Layer 2 networks do have some potential downsides to be aware of, as follows:

As one of the earliest blockchains, Bitcoin is one of the networks that needs Layer 2s the most. The base Bitcoin chain is missing a lot of the functionality found in other systems, such as Ethereum or Solana. Many users believe that Layer 2s are one of the best ways of modernizing Bitcoin and expanding its utility. They add additional programming options and features that users need for modern web3 systems. This ensures that Bitcoin can maintain its position as the premier blockchain, instead of being ousted by other chains capable of running modern trends, such as 

The most obvious impact Bitcoin Layer 2 systems have on the main chain is their ability to handle congestion. Every time a Bitcoin Layer 2 goes online, it helps tackle some of the unnecessary transactions that Bitcoin would otherwise have to handle. This results in lower transaction fees and higher transaction speeds for everyone who still uses the main chain. Research estimates that Bitcoin Layer 2 solutions can 

To better understand what a Layer 2 has to offer the Bitcoin ecosystem, it's useful to take a look at some examples. Here are a few of the most popular current Bitcoin Layer 2 options in the blockchain ecosystem.

 is one of the most popular Bitcoin scaling solutions. It uses a method called channels to more efficiently process transactions off-chain. This strategy lets users communicate with each other through an individual connection. Each channel lets a person send as many transactions as they'd like, back and forth, with only the final results recorded on the main chain.

Lightning Network's ability to increase transaction throughput is a benefit that’s mostly utilized for payments. Therefore, security is essential. It uses 

 (HTLCs) and multi-signature transactions to help users transfer funds and process payments without running into security issues.

The design of Lightning Network has proven to be efficient, with a processing speed of around 1 million transactions per second (

), while Bitcoin only has a TPS of around 10. Furthermore, the transaction cost for users working on the Lightning Network is usually just $0.001. Especially during the Bitcoin price surge of late Feb 2024, Lightning Network's services have been extremely valuable. Since Bitcoin has recently reported over 100,000 extra transactions per day, Lightning Network's scaling solutions have saved users a lot of time and money.

, which runs on the Rootstock chain, is another popular option. Rootstock is inspired by Ethereum virtual machine (

) scaling solutions. It's a sidechain that uses a proof of work (

 to simultaneously mine both Bitcoin and Rootstock (RSK). As transactions are validated, Rootstock bundles them and sends them to Bitcoin to merge the two chains' histories.

Rootstock is only slightly faster than the main Bitcoin chain. Its bundling methods allow some scaling, but the PoW mining method still slows it down. It tends to have a TPS rate of around 20 to 300, which at times is just twice the speed of Bitcoin. The main benefit of Rootstock outside of slightly increased transaction speed is its in-depth set of smart contracts. Developers can use Rootstock and the Rootstock Infrastructure Framework for a variety of storage, payment and naming solutions. It also offers a variety of helpful integrated features, including a rollup service and a wallet for users.

The current interest in Bitcoin has led to a lot of opportunities for Rootstock. Though most people don't rely on it for fast transaction processing, Rootstock's system has attracted the attention of traders who like using DApps to handle their Bitcoin. 

Bitcoin's price spike has also been promising for Rootstock's native token, which is called Rootstock Smart Bitcoin (RBTC). When BTC prices began to climb on Feb 25, 2024, RBTC prices also took off. The coin is designed to match Bitcoin’s price one-to-one, so its price always mirrors that of BTC. For those who help to maintain Rootstock’s network security by mining RBTC, this price spike has been quite favorable.

Liquid Network is a Bitcoin sidechain. It operates in parallel with Bitcoin and aims to increase scalability by sharing the computing power load with Bitcoin. Liquid’s native token, Liquid Bitcoin (L-BTC), corresponds to Bitcoin in price and helps to back the network’s transactions with reliable collateral. Users swap their Bitcoin for Liquid Bitcoin, conduct as many transactions as they desire on the sidechain and then turn it back into regular Bitcoin.

Liquid Network specializes in secure, private transactions. Unlike some other Layer 2 systems, Liquid has special protocols in place to ensure users' transactions are confidential and entirely safe. It also has smart contract capabilities with features such as trustless 

 between users. Many people choose Liquid when they're working with large amounts of crypto or a high volume of transactions.

Liquid Network's scalability has been useful for investors during Bitcoin's price spike. Its network has a TPS roughly double that of Bitcoin, but its real value is in the size of the transactions it can handle. Since it posts far more blocks per hour than Bitcoin, Liquid can handle vast sums of data. Up to 

 can be processed at a time, while Bitcoin can only handle around 450 vbytes per transaction. This makes Liquid ideal for busy times, when traders are buying and selling every few minutes to take advantage of minute price shifts, but don't want to pay pricey transaction costs.

 is a type of blockchain technology that relies on participation from community members known as Stackers, STX token holders who validate and approve blocks. The system’s proof of stake (

) system requires less computing power while still ensuring each block on the Stacks chain is valid. Stacks further scales Bitcoin by adding extra protocols to its blockchain. These smart contracts help to manage complex transactions off-chain, so less data needs to be transmitted to Bitcoin’s network.

Stacks is one of the Bitcoin Layer 2 systems that aims to mimic the design of the Ethereum blockchain, which includes the ability to design projects that wouldn't be operable on Bitcoin. People can design web3 products with ease on Stacks, and the Layer 2 then translates the more complex language into simple transactions that Bitcoin's base chain can handle.

STX's recent price movements provide a unique look at how Bitcoin's prices affect related chains. The token doesn’t match Bitcoin's price one-to-one, but it still follows the same general price patterns as Bitcoin. After sitting at around $2.50 for a year, STX soared to $3.34 when Bitcoin's prices started trending upward in February 2024.

This community-driven project aims to tackle several Bitcoin issues at once. By running an additional layer of smart contracts alongside the Bitcoin blockchain, 

 can process transactions off-chain, which speeds up the main Bitcoin chain by moving several essential types of transactions off-chain. Conflux uses a 

 that provides PoW and PoS systems to obtain a transaction processing speed of 3,000 TPS.

Conflux is one of the most versatile Bitcoin Layer 2 networks. Its system is fully EVM-integrated, so it can handle a broad range of assets. In addition to using Conflux to scale Bitcoin, you can also use it for transferring assets between chains and minting a variety of 

 and ARC-20 tokens. This makes Conflux ideal for users who want to run 

 (DeFi) projects or work with complicated smart contracts.

Since the February 2024 price surge, Conflux has been able to support a lot of DApps running on Bitcoin. People who rely on the blockchain for assistance with daily tasks, such as running a DeFi app, often struggle with crypto trends randomly bogging down transaction throughput. Companies that choose to rely on Conflux's decentralized finance services have found they can keep running smoothly, no matter how high Bitcoin's price goes.

, which means it's a blockchain that started out identical to Bitcoin and then gradually differentiated as its creators added more features. To help with scalability, Drivechain has multiple large-block sidechains. These chains process larger blocks of data, so they can handle larger transactions than the main chain can. The system also uses a type of security mechanism called a 

 escrow, which allows users to maintain token value as they move between the mainchain and the Layer 2 network.

Drivechain was created by LayerTwo Labs with the mission of improving user experience (UX) and reducing public reliance on non-Bitcoin tokens. The focus is on adding extra functionality that makes the main network more straightforward to use. Drivechain's mission also involves more experimentation: the LayerTwo Labs team believes that Bitcoin has stagnated, and wants its forks to become a testing ground for new innovations.

The Drivechain design offers several benefits for users during Bitcoins' price spike. It features payment channels that boast instant transactions without high fees. These fast transaction speeds are ideal for users who are rushing to purchase Bitcoin at the optimal moment. Furthermore, Drivechain offers some additional privacy features that are helpful for users who want to take advantage of BTC prices without compromising their identities.

Omni Layer is an open-source asset platform created by 

. It functions as a meta-layer of software that runs on top of Bitcoin. Its smart contract capabilities allow users to access a variety of DApps on Bitcoin. Omni Layer can leverage Bitcoin's security and processing power while also expanding Bitcoin's utility. One of the most unique methods it employs is altering Bitcoin transaction metadata. After processing transactions on the Omni Layer, the system takes bundles of transaction data and adds them to Bitcoin transaction metadata. This allows information to be stored on the main chain without needing to actually validate every transaction on Bitcoin’s network.

Omni Layer has many potential uses in the Bitcoin community. Originally, it was used primarily for trading and creating cryptocurrencies. Users can create 

 and then trade them with other members. Since Omni Layer is connected to Tether, its most popular coin is the USDT stablecoin. Because this Bitcoin Layer 2 has both scaling and programming capabilities, it's popular with users who want to extend Bitcoin's functionality as a tradeable coin.

 for Omni Layer. However, due to the market demand for USDT, Omni Layer has still played an important role in the Bitcoin price surge of 2024. Users can continue to redeem coins on Omni Layer until August 2024. While the network was stagnating, the impressive BTC price boost has encouraged many users to rush to Omni Layer and make sure they redeem their assets before the deadline.

Rollkit is a Layer 2 that uses a special type of scaling solution called a 

, sovereign rollups don't involve processing all transactions off-chain. Instead, Rollkit uses a blend of both the Bitcoin main chain and its own proprietary software to bundle rollups. This provides better security than some types of zero-knowledge proofs, while also ensuring that transactions are processed at a faster rate.

The Rollkit scaling solution is relatively new to Bitcoin. It was initially a Layer 2 designed for the 

 blockchain. However, its ability to take multiple transactions and bundle them into a single, compressed transaction has also attracted attention from the Bitcoin chain. Therefore, its developers decided to retrofit their technology and create a version that could leverage Bitcoin's security for processing transactions and extend Bitcoin's functionality.

Rollkit's services have attracted some attention in the wake of the Bitcoin price surge. As one of the only services offering sovereign rollups on Bitcoin’s blockchain, Rollkit is uniquely positioned to help developers. People looking for a faster and more efficient way of designing DApps may turn to Rollkit as the solution to their problem.

The Dovi Layer 2 network relies on the EVM for scaling, using the flexible design and smart contract capabilities of Ethereum to process Bitcoin transactions while lowering transaction costs. Dovi incorporates 

 to further improve security. These multi-signature authentications are ideal for confirming transactions in an efficient manner. Moreover, by optimizing block space, Dovi can process transactions more efficiently and speed up transaction processing times.

While Dovi does make the Bitcoin transaction process more efficient, its main aim is to improve the network's capabilities. Dovi contains a variety of flexible smart contracts that developers can use to create projects. It supports cross-chain communications and has an interoperable design that lets it run on multiple systems. This allows people to explore all of Bitcoin's classic services while also using more modern blockchain functionalities.

Dovi is still a fairly new Layer 2, so it hasn't had many chances to show what it can do yet. However, the recent pump in BTC prices has greatly motivated the Dovi community. Even though this Layer 2 hasn't assisted with many transactions during the price surge, its value has gone up a lot. Interest in BTC resulted in positive attention that gave the project's native token a chance to grow. DOVI tokens that were retailing for around $0.40 in mid-February are now worth around $0.60 as of early March 2024.

Many crypto enthusiasts believe that the 

 is increased programmability and functionality. There is a real need for Layer 2s that address Bitcoin's unique design instead of simply copying the scaling Layer 2s found on Ethereum. By offering more smart contract capabilities and programming options, Layer 2s could potentially allow developers to build more projects on Bitcoin. Potentially, the new Bitcoin Layer 2 explosion could help Bitcoin move beyond investing and payment processing and begin to focus on software and games instead.

Layer 2s on Bitcoin are also likely to lead to more integration with other projects in the future. 

 is a major focus for the web3 community right now, and the right Bitcoin Layer 2 project could make the network much more compatible with other systems. Not only can they work with web3 games, social media and exchanges, but Layer 2s can also make it easier to integrate Bitcoin into traditional financial systems. These implications could provide even more positive benefits beyond the scaling that Layer 2 systems currently provide.

Another trend to watch for in Bitcoin Layer 2 networks is a focus on user experience. Many developers are currently working on ways to make blockchain networks more accessible to the average user. Existing blockchains can feel overwhelming or confusing to people who aren't technologically proficient, but Layer 2s can help. By adding a cleanly designed user interface on top of the main Bitcoin chain, these technologies make it more straightforward to transfer funds or make payments. The most successful Layer 2s in the future may be the ones that do a good job of enhancing user experiences.

Ultimately, Bitcoin Layer 2 networks are an essential part of modern web3 development. If Bitcoin wants to maintain its position as one of the leading blockchain networks, it needs a way to process transactions quickly and affordably. Fortunately, many developers have decided to tackle Bitcoin's scaling challenge, so there are a lot of different Bitcoin Layer 2s for people to choose from when they want to reduce transaction fees and extend Bitcoin's functionality.

The Best Bitcoin Layer 2 Projects Fueling Bitcoin's Growth

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