By
Godfrey Benjamin
July 3rd, 2024
OKX Ventures anticipates Bitlayer’s next steps to include the integration of new features that will enhance the Bitcoin ecosystem, such as enabling the creation of NFTs and other liquidity assets on the platform.
Bitlayer, the first Bitcoin layer-2 scaling solution based on BitVM, has secured a strategic investment from OKX Ventures, the venture capital arm of the crypto exchange OKX. This marks the second time this year that the decentralized finance (DeFi) network has received investments from venture capital firms in the industry.
In April, Bitlayer secured $5 million in a seed funding round led by Framework Ventures and ABCDE Capital. Just a few weeks after this investment round, OKX Ventures announced it had injected an undisclosed amount of funds into Bitlayer.
The protocol aims to address the scalability challenges of layer-1 blockchains, particularly Bitcoin, by leveraging its underlying technology and robust security to offer users cheaper and faster transactions.
Bitlayer Accumulates Over $179,000 in Transaction Fees
OKX Ventures is renowned for supporting innovative blockchain projects. The firm, initially launched with $100 million in investment capital, is committed to fostering the healthy development of the global crypto space and investing in long-term structural value.
In an official press release on Monday, the company said it was drawn to Bitlayer because of its commitment to becoming the computation layer for Bitcoin. Bitlayer aims to bring “ultra scalability” to the peer-to-peer (P2P) blockchain platform.
“OKX Ventures supports Bitcoin scaling specifically through vertical, horizontal, inward, and layered scaling in past investment portfolios. Bitlayer addresses the two main challenges in Bitcoin Layer 2: L1 verification and a trustless bridge,” said Dora Yue, founder of the VC firm.
Bitlayer, established by Kevin He and Charlie Hu, entered the crypto market in 2023. Since then, the network has achieved a series of milestones, generating over $179,600 in transaction fees last month.
The platform has also added support for various bridges, facilitating the movement of cryptocurrencies, including non-fungible tokens (NFTs), from one blockchain to another.
For Bitlayer, these supported bridges allow asset transfers to other layer-1 chains outside of Bitcoin. Additionally, users interacting on the platform can move their funds to other Bitcoin and Ethereum Virtual Machine (EVM) compatible chains.
Bitlayer Teams Up with Velar
OKX Ventures anticipates Bitlayer’s next steps to include the integration of new features that will enhance the Bitcoin ecosystem, such as enabling the creation of NFTs and other liquidity assets on the platform.
“We look forward to seeing more Bitcoin amplifications like NFTs and other liquidity assets produced on Bitlayer,” the company stated.
Bitlayer has recently partnered with another Bitcoin-based network called Velar. Together, the two platforms will develop and launch Velar Artha, the world’s first Perpetual Decentralized Exchange (PerpDex) on Bitlayer. The collaboration between the duo aims to give traders the opportunity to trade perpetual contracts directly on the Bitcoin blockchain, offering both security and full decentralization for all transactions.