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Category: Forex News

Merlin Chain Sparks $2.7 Billion Surge, Outpacing Solana in TVL

By Published On: March 6, 20241.7 min readViews: 2210 Comments on Merlin Chain Sparks $2.7 Billion Surge, Outpacing Solana in TVL

DeFi deposits on Bitcoin’s network have experienced an unprecedented surge, reaching over $2.7 billion, marking a 723% increase since the year’s start. This growth is largely attributed to Merlin Chain, a Bitcoin layer 2 network, which has launched Merlin’s Seal campaign, offering users the chance to earn M-points and later claim MERL governance token rewards. This innovative approach has sparked significant interest, mirroring a similar campaign by Ethereum’s criticized layer 2, Blast, albeit with a focus on non-custodial deposits and future plans for a separate blockchain atop Bitcoin using zero-knowledge proofs.

Exploring Merlin Chain’s Strategy

Merlin Chain’s campaign has not only attracted massive deposits but also paved the way for a new era of Bitcoin DeFi. By creating a layer 2 solution that supports smart contracts and decentralized applications, Merlin Chain aims to unlock Bitcoin’s potential beyond just a store of value. This approach is expected to enhance Bitcoin’s utility and attract more users to the DeFi ecosystem. Additionally, the upcoming Bitcoin layer 2, B2 Network, indicates a growing trend of leveraging Bitcoin’s security and liquidity in DeFi projects.

Filecoin and ETHDenver Developments

Parallel to Bitcoin’s DeFi expansion, Filecoin’s GLIF project has announced a points system to reward users for staking FIL tokens, contributing to a 161% increase in crypto locked in Filecoin’s liquid staking protocols. Meanwhile, ETHDenver has concluded, featuring significant announcements from Robinhood and a collaboration between Babylon and Ankr for Bitcoin liquid staking tokens. SEC Commissioner Hester Peirce’s critique of the agency’s hesitance on Bitcoin ETFs underscored the regulatory challenges facing the crypto industry.

The Implications of Bitcoin’s DeFi Ascendance

Bitcoin’s rapid rise in the DeFi Total Value Locked (TVL) rankings to overtake Solana underscores the cryptocurrency’s evolving role in the digital asset ecosystem. This shift, driven by projects like Merlin Chain and B2 Network, suggests a broadening of Bitcoin’s appeal and utility, potentially influencing future blockchain development and investment strategies. As the DeFi landscape continues to evolve, Bitcoin’s integration into this space could herald a new phase of innovation and adoption in the broader cryptocurrency market.

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