Latest Merlin Chain (MERL) News Update

Deep Dive

1. @MerlinLayer2: M-BTC goes multi-chain with Sui (bullish)

“M-BTC holders can now earn yield, trade, and lend BTC via Sui’s high-speed L1 – this is just the start of cross-chain BTCfi.”
– @MerlinLayer2 (327K followers · 1.2M impressions · 2025-08-21 10:13 UTC)
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What this means: This expands MERL’s utility beyond Bitcoin’s ecosystem, tapping into Sui’s $1.79B TVL (DeFi Llama). With 20% of Sui’s TVL already BTC-backed, demand for MERL’s bridging infrastructure could rise.

2. @MerlinLayer2: Mainnet upgrade completes (bullish)

“New zkEVM sequencer architecture enables 2,000+ TPS – essential for onboarding the next wave of Bitcoin DeFi users.”
– @MerlinLayer2 (327K followers · 891K impressions · 2025-06-25 13:36 UTC)
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What this means: The technical overhaul addresses Bitcoin L2’s historical scalability limits. Coupled with 8% BTC staking APY (live data), it strengthens MERL’s bid to dominate BTCfi.

3. @Bithumb: KRW pairing goes live (bullish)

“MERL/KRW trading surged 256% volume post-listing – South Korea’s crypto-hungry retail market is all-in on Bitcoin L2s.”
– @Bithumb (2.1M followers · 4.8M impressions · 2025-07-24 03:25 UTC)
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What this means: Bithumb’s listing gave MERL direct exposure to a market where 27% of adults hold crypto (Ledger). The 20.53% price jump reflects Korea’s influence on altcoin liquidity.

Conclusion

The consensus on Merlin Chain is bullish, driven by cross-chain BTC utility, infrastructure upgrades, and strategic exchange listings. While MERL remains 78% below its ATH ($1.55), its 229% 90-day rally suggests renewed institutional interest in Bitcoin L2 narratives. Watch the M-BTC/Sui TVL metric – if it surpasses $200M by October, expect another re-rating as MERL cements its role in monetizing Bitcoin’s $1.3T dormant liquidity.

Deep Dive

1. BTC L2 Innovation Surge (25 September 2025)

Overview:
HTX’s weekly market recap highlighted Merlin Chain as a top performer in the Bitcoin Layer 2 sector, with MERL rising 97% amid surging interest in BTC DeFi infrastructure. The growth aligns with Bitcoin’s expanding utility beyond store-of-value, driven by Merlin’s ZK-Rollup scaling and decentralized oracle network.

What this means:
This is bullish for MERL as it validates Merlin’s role in Bitcoin’s DeFi evolution. Increased visibility on major exchanges like HTX could attract liquidity, though competition from rival L2s like Stacks remains a risk. (Decrypt)

2. Sui Network Integration (21 August 2025)

Overview:
Merlin Chain integrated with Sui, enabling Bitcoin holders to bridge M-BTC (Merlin’s wrapped BTC) to Sui for yield farming and liquidity provision. Over 20% of Sui’s TVL already comprises BTC assets, signaling demand for Bitcoin’s DeFi utility.

What this means:
This expands MERL’s ecosystem reach, tapping into Sui’s high-speed infrastructure. Success hinges on adoption metrics like M-BTC’s TVL growth on Sui and cross-chain transaction volume. (Merlin Chain)

3. Bithumb Listing Boost (24 July 2025)

Overview:
Bithumb’s KRW trading pair listing propelled MERL to $0.168 (+20.53%), its highest since January 2025. South Korea’s crypto market, with ~$73B in exchange assets, offers liquidity tailwinds for Bitcoin L2 projects.

What this means:
The listing enhances MERL’s accessibility in a key retail market, though volatility risks persist. Traders should monitor Korean exchange inflows and MERL/KRW volume trends. (CoinMarketCap)

Conclusion

Merlin Chain is capitalizing on Bitcoin’s Layer 2 narrative through technical upgrades, strategic partnerships, and exchange expansions. While its 242% 90-day price rally reflects optimism, sustainability depends on real-world adoption of BTCfi use cases. Can MERL maintain its first-mover edge as Ethereum and Solana L2s encroach on Bitcoin’s DeFi turf?

Deep Dive

1. BTC Staking Rewards (October 2025)

Overview: Merlin Chain’s BTC staking program, launched in June 2025, will finalize reward distributions in October 2025. The initial pool capped at 50 BTC saw strong demand, prompting plans to expand capacity.
What this means: Bullish for MERL, as successful reward payouts could reinforce trust in Bitcoin-native yield products. However, scaling challenges or lower-than-expected participation might pressure short-term sentiment.

2. Corporate Treasury Collaboration (Q4 2025)

Overview: Nasdaq-listed CIMG plans to allocate part of its $55M Bitcoin treasury to Merlin Chain’s ecosystem (The Block). This aligns with Merlin’s goal to position BTC as collateral for institutional DeFi.
What this means: Neutral-to-bullish. Institutional adoption could boost TVL and MERL’s utility, but regulatory scrutiny or execution delays pose risks.

3. Sui Network Expansion (Ongoing)

Overview: Merlin’s M-BTC integration with Sui enables BTC holders to access lending, trading, and liquidity mining on Sui’s high-throughput chain. Over 20% of Sui’s TVL already comprises BTC assets.
What this means: Bullish for MERL’s cross-chain relevance, but competition from other Bitcoin Layer 2s (e.g., Stacks) could dilute impact.

4. AI-Powered Chain Abstraction (2026)

Overview: Merlin 2.0’s Wizard AI aims to simplify cross-chain transactions by automating route optimization and security checks. This aligns with its “BTC-only” vision, eliminating the need to sell BTC for altcoin opportunities.
What this means: Bullish long-term if adoption grows, but reliant on seamless AI integration and user trust in automated systems.

Conclusion

Merlin Chain is prioritizing Bitcoin’s transformation into a productive asset via staking, institutional partnerships, and AI-driven interoperability. While near-term rewards and Sui integration offer concrete catalysts, long-term success hinges on scaling solutions and differentiation in the crowded Bitcoin L2 space. How will Merlin balance innovation with the security demands of a trillion-dollar BTCfi market?

Deep Dive

1. Mainnet Upgrade (26 June 2025)

Overview:
The upgrade shifted Merlin from Fork 9 to Fork 12, introducing a redesigned sequencer, RPC infrastructure, and smart contract flexibility.

Technical details:
- New Sequencer Architecture: Replaced legacy systems with zkEVM-optimized sequencing, enabling customizable consensus and state management for higher throughput.
- RPC Migration: Adopted CDK-Erigon RPC to reduce node instability and improve user experience.
- rollbackBatches: Added smart contract flexibility for protocol adjustments.
- Performance: Achieved faster ZK proof generation and “significantly higher TPS” (exact metrics unspecified).

What this means:
This is bullish for MERL because faster transactions and modular infrastructure could attract more developers and users to Bitcoin Layer 2. Reduced downtime risks from stable RPC also improve reliability.
(Source)

2. M-BTC Integration with Sui (21 August 2025)

Overview:
Merlin’s Bitcoin-backed token (M-BTC) launched on Sui, enabling BTC holders to access DeFi across both chains.

Technical details:
- M-BTC acts as a synthetic BTC representation on Sui.
- Users bridge M-BTC via ProtocolFree and engage in Sui-based lending (naviprotocol) and liquidity provision (Magma_Finance).
- Sui’s parallel execution and instant settlement complement Merlin’s ZK-Rollup architecture.

What this means:
This is neutral-bullish for MERL as it expands BTC utility but depends on Sui’s adoption. Cross-chain interoperability could drive TVL growth for Merlin if demand for BTCfi rises.
(Source)

Conclusion

Merlin Chain’s codebase prioritizes scalability (zkEVM sequencer) and Bitcoin’s DeFi integration (M-BTC bridges). While recent upgrades address technical bottlenecks, sustained growth hinges on ecosystem adoption. How will Merlin balance Bitcoin-centric design with multi-chain demand?