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    Galaxy Digital forecasts $47 billion in Bitcoin on layer-2 networks by 2030 with significant growth in ventures and new tokens driving investment

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    Galaxy Digital predicts that around $47 billion worth of Bitcoin could be in Bitcoin layer-2 networks by 2030, backed by 7x growth in related projects and $447 million in venture capital investment noticed in 2024. Reportedly, the second quarter of 2024 marked a 159% increase in investments from the first quarter. Notably, Bitcoin Ordinals and BRC-20 tokens launched in 2023 are driving new investment opportunities. If Bitcoin reaches $100k in value by 2030, the market could hit $47 billion, assuming that 2.3% of all Bitcoin is on layer-2 networks. However, Galaxy expects 3-5 major players, out of current 75, to dominate the market.

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    According to the research done by Galaxy Digital, they’re predicting around $47 billion worth of Bitcoin could end up in Bitcoin layer-2 networks by 2030.

    In a recent report, Galaxy took a look at how Bitcoin layer-2 ecosystems expanded in 2024. They noticed a seven times increase in related projects and around $447 million in investments from venture capital firms.

    Venture funding in these layer-2 networks has hit $447 million so far, with 39% of all investments made in the first three quarters of 2024. Galaxy’s data shows that between January and September 2024, $174 million was raised by these second layer networks. Out of this, $105 million went to sidechains, while $63 million was for rollups.

    They also observed in the second quarter of 2024, there was a major increase of investments in Bitcoin layer-2 networks, making up 44% of all investment
    capital in layer-2s across the whole crypto landscape. The second quarter saw a 159% rise from the first quarter of the same year in investments.

    Galaxy points out this increase in investment shows that traditional crypto venture capitalists, who hadn’t previously invested much in the Bitcoin ecosystem, are now taking an interest. Before 2024, many of these VC firms saw Bitcoin primarily as “digital gold.” But when Bitcoin Ordinals and BRC-20 tokens came along in 2023, new investment opportunities arose.

    The team at Galaxy believes as the ecosystem develops, crypto VCs will carry on investing in Bitcoin layer-2 networks.

    In terms of the money flowing into these layer-2 networks, Galaxy thinks we could see about $47 billion in Bitcoin entering the network by 2030 as folks look for ways to earn from their assets. If Bitcoin hits $100k by 2030, the market could reach around $47 billion, assuming that 2.3% of all Bitcoin is in layer-2 networks by 2030.

    While this ecosystem is growing at a rapid pace, they anticipate only a handful of players, around three to five, will dominate the market out of the current 75.

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