Hemi the new Bitcoin Layer 2 protocol gained substantial investor support by locking more than $260 million in total value. Locked before its mainnet began operating. Unlike other Bitcoin L2 competitors, Hemi continues to gain momentum in the marketplace following its establishment by blockchain pioneer Jeff Garzik despite general market withdrawal trends.
Hemi functions as a Bitcoin sidechain network in the same way that other protocols including Core along with Bitlayer and Stacks operate. The protocols enhance Bitcoin’s usefulness because they establish decentralized financial (DeFi) features for staking and yield production.
Hemi Surges as Bitcoin L2s Face Declines
Native explorer data shows Hemi achieving continuous growth and users depositing 2,686 BTC derivatives through 3,207 Ethereum staking tokens within the protocol. The strong increase in funds running through Hemi represents an opposite trend from other Bitcoin L2 platforms where TVL figures show declining numbers.
L2 Ethereum protocol Core maintained the position as the most significant BTC L2 but experienced a significant 12% TVL decrease in the past week before Bitlayer and others recorded value dips as Bitcoin L2 portals suffer in a marketwide depreciation trend.
The private Hemi network holds $260 million in funds that establishes it among the top five BTC Layer 2 protocols. Although Hemi has not revealed any timeline for launching its public mainnet its potential users continue to watch for more information on the release date.
The speed at which Hemi has grown demonstrates the expanding need for scalable DeFi solutions on the Bitcoin blockchain as BTC L2 protocol competition continues to escalate. The market watches to see whether the protocol will maintain its current pace following its upcoming strategic developments.
The launch remains on track, and the testnet incentives will conclude shortly before the public Mainnet launch. Once Mainnet is live, the first round of incentives will begin. The token generation event (TGE) is still planned for four to six weeks after the Mainnet release. Hemi blog
