2024

Galaxy

Bitcoin

Galaxy Digital’s research division estimates that approximately $47 billion in Bitcoin liquidity could be bridged into Bitcoin layer-2 (L2) networks by 2030.
In its latest <a data-ct-non-breakable="null" href="https://www.galaxy.com/insights/research/bitcoin-layer-2-modular-future/" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://www.galaxy.com/insights/research/bitcoin-layer-2-modular-future/">report</a>, Galaxy Research analyzed the growth of Bitcoin L2 ecosystems in 2024, noting a sevenfold increase in projects and approximately $447 million in venture capital investments to date.
Galaxy estimated about $47 billion in Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="null" text="null" title="null">BTC</a>) liquidity may be bridged into Bitcoin L2 networks by 2030.&nbsp;
<h2 id="crypto-vcs-see-other-investment-narratives-in-bitcoin">Crypto VCs see other investment narratives in Bitcoin</h2>
The researchers highlighted that venture funding in Bitcoin L2s has already reached $447 million, with 39% of all investments happening in the first three quarters of 2024.&nbsp;
<figure><img alt="$47B in BTC may flow into Bitcoin L2s by 2030 — Galaxy Research" src="https://s3.cointelegraph.com/uploads/2024-11/01934ead-ba7f-781f-89d5-e9f88780a732" title="">
 <figcaption style="text-align: center;">
 Top Bitcoin L2 funding deals by type. Source: Galaxy Research
 </figcaption>
</figure>
Galaxy data showed that Bitcoin L2s raised $174 million in funding between January and September 2024. $105 million went to sidechains, while $63 million went to rollups.
The researchers also pointed out that the second quarter of 2024 showed a significant shift, with Bitcoin L2s capturing 44% of all VC capital invested in layer-2s across the crypto industry. The second quarter also showcased a 159% increase in investments compared to the first quarter of 2024.&nbsp;
Galaxy explained that the increase in VC investments highlighted that traditional crypto VCs — not including Bitcoin-focused funds — had little exposure to the Bitcoin ecosystem before 2024.&nbsp;
Previously, many such firms had limited exposure to Bitcoin-focused projects, viewing it primarily as “digital gold.” However, the emergence of Bitcoin Ordinals and BRC-20 tokens in 2023 presented new investment opportunities.
Galaxy believes that crypto VCs will continue to deploy capital into Bitcoin L2s as the ecosystem matures.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/microstrategy-stock-surges-94-ytd-bitcoin-nears-100k" rel="noopener noreferrer nofollow" target="null" text="null" title="null">MicroStrategy stock surges 94% YTD as Bitcoin nears $100K</a>
<h2 id="galaxy-expects-47-billion-in-btc-to-flow-into-bitcoin-l2s">Galaxy expects $47 billion in BTC to flow into Bitcoin L2s</h2>
As the Bitcoin L2 ecosystem develops, Galaxy estimates that about $47 billion in BTC may flow into the L2 ecosystem by 2030. The report noted that this will be due to holders looking for yield opportunities for their assets. Galaxy wrote:&nbsp;
<blockquote>
 “If BTC reaches $100k in 2030, the TAM [total addressable market] for Bitcoin L2s could then reach up to $47bn, assuming that 2.3% of total BTC supply is locked in Bitcoin L2s by 2030.”
</blockquote>
While the ecosystem is rapidly expanding, Galaxy researchers predict that only a few players — between three and five — will dominate the market among the 75 builders currently involved in the space.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/crypto-four-years-grow-cant-be-shut-down-kain-warwick-infinex/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Crypto has 4 years to grow so big ‘no one can shut it down’: Kain Warwick, Infinex</a>

$47B in BTC may flow into Bitcoin L2s by 2030 — Galaxy Research

Table of Contents

Cointelegraph

Other articles published on Nov 21, 2024

Tropical Rainforest Point Zone Wave 2：Get your RedotRay Crypto Card

First Neiro On Ethereum Price Prediction : Will NEIRO Hit $1.00 By 2030?

Shiba Inu Up For 50% Gain As It Hovers Near Key Resistance Zone

Binance announces verified WhatsApp channel for real-time crypto updates

Solana's Monthly DEX Volume Hits Records $70B as $SOL Nears ATH

Sui Price Plummets 8% Amid A Recent Sui Network Outage As Pepe Unchained Offers Last Chance To Bu...

Join our free newsletter for daily crypto updates!