$47B in BTC may flow into Bitcoin L2s by 2030 — Galaxy Research

As a seasoned researcher with over two decades of experience in the dynamic world of finance and technology, I find the recent findings by Galaxy Digital’s research division particularly intriguing. The estimated $47 billion liquidity shift to Bitcoin Layer-2 networks by 2030 is nothing short of groundbreaking.


As an analyst, I estimate that around $47 billion worth of Bitcoin liquidity could potentially be transferred to Bitcoin layer-2 (L2) networks by the year 2030. This projection is based on research conducted within Galaxy Digital.

According to Galaxy Research’s recent findings, the number of Bitcoin L2 ecosystem projects saw a significant sevenfold expansion in the year 2024. Additionally, they highlighted that around $447 million has been invested in these projects through venture capital funding so far.

By the year 2030, it’s possible that approximately $47 billion worth of Bitcoin (BTC) could flow into lower-level Bitcoin networks, based on current estimates.

Crypto VCs see other investment narratives in Bitcoin

In simpler terms, it’s been noted that by the third quarter of 2024, venture capital investments in Bitcoin Layer 2 solutions have amassed an impressive $447 million, with nearly 40% of these investments taking place during this period.

$47B in BTC may flow into Bitcoin L2s by 2030 — Galaxy Research

Data from the galaxy reveals that Bitcoin Layer-2 solutions garnered a total of $174 million in investments between January and September 2024. Of this amount, approximately $105 million was directed towards sidechains, whereas about $63 million was invested in rollups.

In the second quarter of 2024, Bitcoin L2s attracted an impressive 44% of venture capital invested in layer-2s within the crypto sector. This period also witnessed a substantial surge, with investments increasing by approximately 159% compared to the first quarter of the same year.

Galaxy stated that a rise in Venture Capital (VC) investments implies that most traditional crypto VC firms, excluding those specialized in Bitcoin, had minimal involvement with the Bitcoin system prior to 2024.

Earlier, numerous companies had a minimal involvement with Bitcoin-centric initiatives, regarding it mainly as a form of digital bullion. Yet, the advent of Bitcoin Ordinals and BRC-20 tokens in 2023 introduced fresh avenues for investment.

Galaxy is confident that venture capital firms specializing in cryptocurrency will keep investing funds into layer-2 solutions for Bitcoin, as the sector progresses and develops further.

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.”

As the ecosystem continues to grow at an accelerated pace, Galaxy analysts forecast that just a handful of key players – likely numbering between three and five – are poised to control the market. Currently, there are approximately 75 entities participating in this sector.

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2024-11-21 15:54