Galaxy Digital’s research division estimates that approximately $47 billion in Bitcoin liquidity could be bridged into Bitcoin layer-2 (L2) networks by 2030.
In its latest report, Galaxy Research analyzed the growth of Bitcoin L2 ecosystems in 2024, noting a sevenfold increase in projects and approximately $447 million in venture capital investments to date.
Galaxy estimated about $47 billion in Bitcoin (BTC) liquidity may be bridged into Bitcoin L2 networks by 2030.
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The researchers highlighted that venture funding in Bitcoin L2s has already reached $447 million, with 39% of all investments happening in the first three quarters of 2024.
Top Bitcoin L2 funding deals by type. Source: Galaxy Research
Galaxy data showed that Bitcoin L2s raised $174 million in funding between January and September 2024. $105 million went to sidechains, while $63 million went to rollups.
The researchers also pointed out that the second quarter of 2024 showed a significant shift, with Bitcoin L2s capturing 44% of all VC capital invested in layer-2s across the crypto industry. The second quarter also showcased a 159% increase in investments compared to the first quarter of 2024.
Galaxy explained that the increase in VC investments highlighted that traditional crypto VCs — not including Bitcoin-focused funds — had little exposure to the Bitcoin ecosystem before 2024.
Previously, many such firms had limited exposure to Bitcoin-focused projects, viewing it primarily as “digital gold.” However, the emergence of Bitcoin Ordinals and BRC-20 tokens in 2023 presented new investment opportunities.
Galaxy believes that crypto VCs will continue to deploy capital into Bitcoin L2s as the ecosystem matures.
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Galaxy expects $47 billion in BTC to flow into Bitcoin L2s
As the Bitcoin L2 ecosystem develops, Galaxy estimates that about $47 billion in BTC may flow into the L2 ecosystem by 2030. The report noted that this will be due to holders looking for yield opportunities for their assets. Galaxy wrote:
“If BTC reaches $100k in 2030, the TAM [total addressable market] for Bitcoin L2s could then reach up to $47bn, assuming that 2.3% of total BTC supply is locked in Bitcoin L2s by 2030.”
While the ecosystem is rapidly expanding, Galaxy researchers predict that only a few players — between three and five — will dominate the market among the 75 builders currently involved in the space.
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