The crypto market is experiencing typical volatility brought on by a cycle shift. Bitcoin (BTC) is currently priced at $91.84K, and the entire market is beginning to look for new growth engines. History shows us that whenever mainstream cryptocurrencies enter consolidation phases, institutional funds shift to the next wave of infrastructure development — in 2021, it was Ethereum solutions, and in 2023, it is the Solana ecosystem. Now, the focus has shifted to the Bitcoin Layer 2 track, and this time, the logic seems more compelling than ever before.
$1.2 Trillion Dilemma
The Bitcoin ecosystem faces an awkward reality: most of its $1.2 trillion market cap is in a "sleeping" state. These coins are either stored in cold wallets waiting for appreciation or unable to participate in any yield mechanisms. To compare, the Ethereum ecosystem already has over $60B in total value locked (TVL), while the entire Bitcoin ecosystem