Hemi Bitcoin (BTC) L2 Protocol Amasses $260M in TVL Ahead of Mainnet Launch

While Bitcoin L2s recently witnessed outflows, a new protocol called Hemi amassed more deposits on its private mainnet network.

Bitcoin (BTC) layer-2 (L2) protocols have seen contrasting fortunes recently, with Hemi protocol amassing more deposits on its private mainnet network, while overall L2s witnessed outflows.

According to data from the Hemi native explorer on March 13, the protocol has gathered over $260 million in total value locked (TVL) ahead of its mainnet launch. This includes 2,686 liquid BTC derivatives and 3,207 ETH-dominated staking tokens.

Hemi, founded by early blockchain developer Jeff Garzik, aims to integrate decentralized finance (DeFi) into Bitcoin through staking and yield generation.

This TVL will be deployed onto Hemi’s decentralized exchanges (DEXes) and lending protocols to provide day-one liquidity for trading, borrowing, staking, and yield farming of popular assets in the Bitcoin and Ethereum ecosystems.

Bitcoin L2s, also known as sidechains, connect to Bitcoin’s blockchain to enhance its capabilities. Several protocols, including Hemi, Core, Bitlayer, and Stacks, are vying to unlock DeFi for BTC.

Meanwhile, data from DefiLlama showed a broader trend of outflows from BTC L2s, with the total TVL declining by 12% over the past week. Core, the leading BTC L2, experienced a seven-day outflow of 12%, while other market frontrunners, such as Bitlayer, BSquared, Rootstock, AILayer, and Stacks, also saw decreases in user balances.

Hemi’s reported $260 million in user funds would place the L2 among the top five protocols in the space. However, it's important to note that these funds are locked in Hemi's private mainnet, and the protocol's market ranking may differ once it launches on the public mainnet.

The Hemi team has not yet shared a tentative date for the protocol's mainnet launch. However, they have stated that the launch is still on track, and the testnet incentives will conclude shortly before the public mainnet launch.

Once the mainnet is live, the first round of incentives will begin, and the token generation event (TGE) is still planned for four to six weeks after the mainnet release.