BitVM Integration Unlocks Bitcoin’s $1.9 Trillion Liquidity Across Five Major Blockchains

By Pune Media On Feb 28, 2025

Bitlayer, a Bitcoin BTC/USD Layer-2 developer, has partnered with five blockchains—Base, Starknet STRK/USD, Arbitrum ARB/USD, Sonic (CRYPTO: S) and Plume Network to connect Bitcoin’s $1.9 trillion market to their ecosystems using its BitVM Bridge.

Announced at ETH Denver, this integration allows Bitcoin holders to transfer assets across these networks, enabling uses like lending, staking, and liquidity provision.

The move taps into growing interest in extending Bitcoin’s role beyond a static asset, though its success hinges on technical and market challenges.

The partnerships link Bitcoin to chains with a combined valuation in the tens of billions, reflecting a trend of Layer-1 and Layer-2 networks incorporating Bitcoin.

Bitlayer’s BitVM Bridge, the first implementation of the BitVM framework, facilitates these connections without altering Bitcoin’s core protocol.

“As the most immediate benefit of integration, BitVM Bridge will help unlock Bitcoin’s $1.9 trillion worth of liquidity on multichain ecosystems,” said Charlie Hu, co-founder of Bitlayer, noting potential access for users on the five networks to decentralized finance (DeFi) applications.

Each blockchain brings distinct features. Base uses cbBTC to integrate Bitcoin with EVM-compatible systems, Arbitrum targets DeFi with asset bridging, and Starknet, a zero-knowledge rollup, aims to share liquidity across protocols.

Plume Network focuses on real-world asset (RWA) tokenization, while Sonic, tied to Solana’s VM, supports gaming and apps.

“Bitlayer pioneers Bitcoin’s evolution as the first team to implement BitVM, unlocking native programmability and scalability without forks,” Hu stated, highlighting the technical approach behind the effort.

Also Read: EXCLUSIVE: Bitcoin ETFs With Staking Could Transform Institutional Adoption, Says Bitlayer Co-Founder

The integration could shift how Bitcoin’s value—about 60% of the crypto market—is utilized, potentially supporting activities like yield farming on protocols such as Aerodrome AERO/USD or AAVE AAVE/USD.

However, experts caution that high transaction costs on Bitcoin and the complexity of zero-knowledge proofs may limit adoption.

“This first BitVM integration marks a profound shift in the evolution of crypto,” Hu added, with Bitlayer planning further collaborations to expand the framework’s reach.

While the initiative aligns with Bitcoin’s rising DeFi interest, it faces competition from Ethereum’s established ecosystem and questions about economic viability.

Bitlayer’s approach contrasts with sidechains by settling transactions on Bitcoin, aiming to bolster miner fees amid halving pressures.

Still, its impact remains unproven, and the broader industry continues to grapple with scalability and regulatory uncertainties.

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