Bitcoin Layer-2 Merlin Chain (MERL) Surges 16% In 24 Hours Fueled By Major Infrastructure Upgrade

Merlin Chain, an Ethereum Virtual Machine (EVM) compatible layer-2 scaling solution for Bitcoin, has seen the price of its native MERL token rise by 16% over the past 24 hours, and is up nearly 30% for the week.

The protocol is designed to enhance Bitcoin’s scalability, efficiency, and functionality through advanced technologies such as ZK-Rollups, decentralized oracle networks, and on-chain fraud-proof modules. It addresses the original blockchain’s scaling limitations by enabling faster and cheaper transactions, while ensuring security and decentralization. Merlin Chain allows for the creation of decentralized applications (DApps) and other high-throughput services that support BTC.

MERL Token Soars as Merlin Chain 2.0 Begins Work to Facilitate Faster and Cheaper Bitcoin Transactions

MERL’s positive price performance comes despite an ongoing market downtrend that has resulted in BTC and ETH falling to weekly lows in the $118,000 and $3,500 range. It can also be attributed to the newly announced Merlin Chain 2.0 upgrade, which aims to facilitate faster and cheaper Bitcoin transactions while maintaining the blockchain’s inherent security architecture.

Merlin Chain 2.0 marks a significant milestone for Bitcoin by bridging the gap between security and utility, allowing users to engage with decentralized applications (DApps) directly on the mainnet. A standout feature of the upgrade is its implementation of a chain abstraction layer – a technology designed to mask the complexities of multi-chain interactions.

With the blockchain landscape becoming increasingly fragmented as users are faced with having to manage different wallets, tokens, and bridging protocols to conduct cross-chain transactions, Merlin’s chain abstraction layer provides a seamless transaction experience by eliminating these barriers, enabling users to interact with DApps without requiring them to understand the underlying mechanics of blockchain technology.

This feature not only enhances DeFi accessibility for newcomers but also fosters the adoption of Bitcoin-based applications.

Merlin Chain 2.0 also introduces artificial intelligence to enhance operational efficiency and security of on-chain activities. The AI algorithms are designed to optimize transaction routing, reduce latency, and minimize fees by dynamically selecting the most efficient paths for data flow on the Bitcoin network.

Additionally, the L2’s AI-driven security protocol will monitor network activity in real time to identify and mitigate potential threats before they impact users. Merlin has also extended its AI feature to user experiences, where the algorithm can tailor DApp recommendations based on individual usage patterns, thereby enhancing engagement and adoption of the platform.

Merlin Chain Launches Bitcoin Staking Feature, Promises 21% APY on Users’ BTC

Last month, Merlin Chain launched Bitcoin staking on its platform as part of its commitment to enhance cross-chain liquidity and composability in the crypto market. The product stakes native BTC assets through a proof-of-stake (PoS) consensus mechanism, offering up to 21% annual percentage yield (APY).

The initial pool will be capped at 50 BTC ($6 million), with rewards planned to be distributed to stakers starting in October. Jeff Yin, the founder of Merlin Chain, suggested that the pool’s capacity will be increased as per user demand. He highlighted that the project’s long-term vision is to enhance Bitcoin’s composability and revenue potential across various blockchain environments. Merlin is also partnering with DeFi players to strengthen Bitcoin’s cross-chain infrastructure.

The reaction to Merlin Chain’s BTC staking product was immediate, as market participants are interested in realizing the possibilities of apex crypto in DeFi. The introduction of this feature goes beyond the Bitcoin network, as it now enhances trading dynamics for leading PoS blockchains like Ethereum and Solana, which could introduce synthetic BTC into their ecosystem. This underscores the crypto industry’s resilience to ever-evolving demands for asset stake growth.

Merlin Chain Opens the DeFi Market to Bitcoin – Analysts Project DeFi Market to Cross $600 Billion by 2030

Experts have analyzed that the Bitcoin staking feature could lead to more robust cross-chain infrastructure, with potential technological outcomes including increased interoperability for BTC across various blockchains. It could also firmly establish the alpha cryptocurrency in the $26 billion DeFi market, which, according to a recent report, is expected to grow at an annual rate of 40% to a valuation of $616 billion by 2030.

By enabling Bitcoin holders to participate in DeFi, Merlin Chain is looking to turn dormant coins into productive assets. Users can lend, borrow, stake, and provide liquidity using their BTC in a secure environment while generating passive income, a facility that isn’t available on the mainnet. Moreover, Merlin’s support for NFTs and blockchain gaming opens up new avenues for digital ownership and interactive experiences that are secured by Bitcoin’s robust network architecture.

At the time of writing, Merlin Chain (MERL) is trading at $0.1378, up nearly 10% in the last 24 hours.