In a notable development in the Bitcoin layer-2 space, the emerging protocol Hemi has significantly increased its deposits on its private mainnet network, contrasting with recent outflows experienced by other Bitcoin L2s.
Founded by blockchain innovator Jeff Garzik, Hemi has secured over $260 million in total value locked (TVL) as it approaches its mainnet launch.
Bitcoin L2s operate as sidechains linked to the Bitcoin blockchain, with platforms like Hemi, Core, Bitlayer, and Stacks aiming to broaden decentralized finance (DeFi) opportunities for Bitcoin through staking and yield generation.
Recent data from the project’s native explorer indicated a surge in user deposits, which included approximately 2,686 in liquid BTC derivatives and around 3,207 in Ether (ETH) staking tokens.
These TVL assets will be utilized in Hemi’s decentralized exchanges (DEXes) and lending protocols, ensuring immediate liquidity for trading, borrowing, staking, and yield farming across both Bitcoin and Ethereum ecosystems.
Hemi’s increase in user deposits stands in stark contrast to the decline seen across the Bitcoin layer-2 market. Core, the leading BTC L2, reported a 12% decrease in TVL over the past week, as indicated by recent data. Other notable players, including Bitlayer, BSquared, Rootstock, and Stacks, also experienced decreased user balances amid a general market correction.
Hemi’s reported $260 million TVL positions it among the top five protocols in the Bitcoin L2 sector. This funding remains locked in the private mainnet as the team continues preparations for a public launch, although no specific timeline has been disclosed yet.
The mainnet launch is progressing as scheduled, with testnet incentives set to conclude shortly before the public release. Once live, the first round of incentives will commence, and a token generation event (TGE) is anticipated to follow four to six weeks after the public mainnet launch.
