Bitfinity Network, a new layer-2 solution for Bitcoin, has officially launched with $12 million in funding. The project aims to bring Ethereum Virtual Machine (EVM)- compatible decentralized finance (DeFi) features to Bitcoin. Earlier in 2024, the project gained backing from institutional investors like Polychain and ParaFi. Additionally, $5 million was raised through over-the-counter (OTC) token sales.
A recent press release revealed that Bitcoin’s Layer 2 (L2) will use Internet Computer Protocol’s (ICP) Chain Fusion Technology to allow Bitcoin-native assets to function within an Ethereum-compatible ecosystem. With Bitcoin’s price recently surpassing $92,000 and growing interest in its potential beyond just a store of value, new Layer 2 solutions are, consequently, unlocking new possibilities for the cryptocurrency.
Bitfinity secures $12M for DeFi growth
The funding round raised a total of $7 million from prominent backers like Polychain’s Beacon Fund, ParaFi, Draft Ventures, and Warburg Serres. In addition, the platform secured another $5 million from grassroots supporters and crypto influencers, which will play a key role in expanding the Bitfinity Network and boosting its development.
Bitfinity spokesperson said that with institutional ETFs on the horizon and a new regime marking Bitcoin more accessible to institutions, the platform is seeing a dynamics shift. Bitfinity representative shared that a strong proof-of-stake protocol using Chain-Key technology strengthens the security of its Layer 2 network. The spokesperson also mentioned that the ecosystem plans to support decentralized applications (DApps) such as Sonic, Chapswap, Lendfinity, and Omnity Bridge.
Bitfinity has backing from the founder of Liquity, which was a billion-dollar TVL borrowing and lending protocol, and we have plans to introduce similar solutions to our platform soon.
According to a report from The Dfinity Foundation on Nov. 4, the usage of ICP’s cross-chain messaging protocol, Chain Fusion, surged by 1,230% year-over-year. BTC-native apps like Rainbow Protocol, Tap Protocol, and Bitfinity drove this dramatic increase, which use ICP to run smart contracts and execute complex programming on the Bitcoin network.
Additionally, the Dfinity Foundation explained that Chain Fusion allows smart contracts on Bitcoin by directly interacting with the ICP network, eliminating the need for trusted bridges.
