Merlin continues to consolidate its position as a leader among level 2 (L2) chains based on Bitcoin, gaining the top spot for the volume of BTC locked on its platform.
This success is largely due to the advantage of being a first mover in the sector of scalability solutions for Bitcoin, an ecosystem that is growing at a slower pace compared to other blockchains, but is already identifying its winners.
Among these, Merlin stands out as one of the most funded and respected L2 chains, particularly for its innovation and advancements towards advanced decentralization based on zero-knowledge proofs (ZK proofs).
The growth of Bitcoin L2 solutions and the role of Merlin
The Bitcoin L2 solutions aim to improve scalability and reduce transaction fees while ensuring security and decentralization. However, the development of these solutions is progressing at a slower pace compared to that of L2 chains on other blockchains, such as Ethereum.
Despite this more moderate growth rate, the Bitcoin ecosystem L2 is beginning to clearly outline which projects will be successful, and Merlin has established itself as one of the main players.
Merlin Chain has a significant advantage thanks to its pioneering role in the sector, which has allowed it to attract a notable volume of locked BTC. According to various reports, it currently holds between 7,000 and 9,000 locked BTC on its platform, with a peak of over 11,000 BTC recorded a few months ago. This makes Merlin the leading L2 chain regarding the amount of deposited Bitcoin.
The advantage of first mover and innovation with ZK proofs
One of the main strengths of Merlin is the advantage derived from its role as a first mover. Being one of the first chains to offer L2 solutions for Bitcoin, Merlin was able to build a solid infrastructure and gain the trust of users.
This was made possible also thanks to its ability to constantly evolve, trying to keep up with technological innovations in the blockchain sector.
An important step towards the complete decentralization of Merlin is the integration of zero-knowledge proofs (ZK proofs). These technologies allow for the verification of transaction validity without revealing sensitive details, increasing both privacy and efficiency.
This development represents an important milestone for Merlin and could further accelerate its adoption as the main Bitcoin L2 platform.
Despite the success of the platform, Merlin’s native token, MERL, underperformed compared to other cryptocurrencies throughout 2024. Although the platform managed to maintain its dominant position as a leader in the amount of BTC locked, the MERL token did not experience a significant breakout or strong appreciation in the market.
This could be due to a combination of factors, including the growing competition in the L2 ecosystem and the need for greater adoption of the token outside the platform itself.
However, despite the lack of extraordinary performance of the MERL token, Merlin Chain continues to be a reference point in the sector of Bitcoin L2 solutions, offering a solid infrastructure for users seeking scalability and privacy.
Conclusion
Merlin remains the leading L2 chain based on deposited BTC, with a strong base of locked BTC fluctuating between 7,000 and 9,000 BTC. Its success can be attributed to its first mover advantage and ongoing innovation, particularly with the integration of ZK proofs, which could lead the platform towards even more advanced decentralization.
Despite the underperformance of its native token MERL, Merlin has maintained a solid position in the sector and presents itself as one of the most promising L2 chains for the future of Bitcoin. 2024 could bring further developments and wider adoption, making Merlin a key point in the evolution of scalability solutions for Bitcoin.
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