1/13
Bitcoin scaling isn't new.
But in 2025, it’s finally moving beyond just payments.

There’s been a lot of talk recently about where Bitcoin L2s are headed, so we took a closer look.

🧵 A few things caught our eye https://t.co/tSDG98CKaD

2/13
Let’s start with the basics:
Can Bitcoin really support L2s the way Ethereum does?

Short answer: not quite.
It doesn’t verify proofs or run contracts,
so the classic models just don’t apply.
You have to get creative.

5/13
So why now?
The numbers flipped.

In early 2023, Bitcoin DeFi had just $300M in TVL.
By the end of 2024, it hit $6.5B.

Not because of Lightning or bridges,
but thanks to smart contract chains orbiting BTC.

6/13
Stacks and RSK were the first movers. They’re still here.
But in 2024, they held 94% of TVL.

That dominance is dropping fast
as EVM chains, zk systems, and Spiderchains rush in.

The scene exploded.

7/13
Calling everything an “L2” misses the point.
BounceBit is more like restaking.
Stacks has its own consensus.

Most of these chains aren’t secured by Bitcoin.
They just lean on its liquidity or brand.

8/13
Why hasn’t Bitcoin DeFi caught up with Ethereum?
Because BTC holders think differently.

They’re not chasing APYs,
not bridging,
mostly just holding.

Over 70% of BTC didn’t move for a full year.
That changes how you build.

9/13
Getting yield on BTC without wrappers,
bridges, or custodians isn’t easy.

One approach gaining attention is Spiderchain, an EVM-compatible chain backed by native Bitcoin multisigs. It doesn’t rely on synthetic assets or gimmicky workarounds.

10/13
And the potential is still massive.

Bitcoin FDV: $1.74T
Bitcoin DeFi TVL: just $6B

Ethereum puts ~21% of its value to work.
Bitcoin? Just 0.33%.

That’s billions sitting idle.

11/13
BTC is slowly waking up, shifting from cold storage to actual use.

It’s not hype.
It’s real utility:
lending,
swapping,
yield,
all without compromising the core.

And we’re glad to see that shift happening.

12/13
As of May 2025, over 60,000 BTC is active across L2s, up from 30,000 just six months ago.

The space has diversified:
EVM chains,
zk-rollups,
Spiderchains,
restaking hybrids.

Even institutions are starting to pay attention.

13/13
No need to rewrite Bitcoin.

Just expand how it’s used, without touching the base layer.

3/13
Ethereum L2s rely on base-layer contracts to validate what happens off-chain.
Bitcoin gives you 80 bytes in OP_RETURN. That’s it.

Which means most “L2s” here are really just separate chains, connected to Bitcoin on paper, not in practice.

4/13
Some call them Bitcoin Chains instead of L2s, and that’s probably more honest.
They run their own consensus, their own logic,
and only interact with Bitcoin when needed.

It’s not about changing Bitcoin.
It’s about building around it.