Bitcoin layer-2 networks may see $47B by 2030
Galaxy Research has projected that Bitcoin (CRYPTO:BTC) layer-2 (L2) networks could attract $47 billion in Bitcoin liquidity by 2030 as adoption and investments grow.
The report highlights a sevenfold increase in Bitcoin L2 projects in 2024 and a notable rise in venture capital (VC) funding for the sector.
Between January and September 2024, Bitcoin L2 networks secured $174 million in funding, with $105 million directed toward sidechains and $63 million to rollups.
Overall, VC investments in Bitcoin L2s have reached $447 million, with 39% of this amount raised in the first three quarters of 2024.
According to Galaxy Research, the second quarter saw a 159% increase in investments compared to the first quarter, accounting for 44% of all L2 investments across the crypto industry.
Galaxy attributes this growth to a shift in perception among traditional crypto venture funds, which had limited exposure to Bitcoin-focused projects before 2024.
The emergence of Bitcoin Ordinals and BRC-20 tokens in 2023 has sparked new investment opportunities, altering the view of Bitcoin as merely "digital gold."
The report estimates that if Bitcoin reaches $100,000 by 2030, approximately 2.3% of its total supply could be locked in L2 solutions, bringing the total addressable market for Bitcoin L2s to $47 billion.
"If BTC reaches $100k in 2030, the TAM [total addressable market] for Bitcoin L2s could then reach up to $47bn," the report stated.
At the time of reporting, the Bitcoin price was $98,437.20.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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