Our weekly crypto derivatives analytics report dives into macro events, the current state of crypto and trading signals from spot trading volume, and futures, options and perpetual contracts.

Spot prices have jumped significantly in the two weeks following the November 5, 2024 U.S. elections, propelling Bitcoin to new all-time highs, while Ethereum hasn’t kept pace. The implied volatility term structure has inverted again in tandem with these spot price movements, although longer-dated tenors remain relatively stable. Derivatives market indicators reflect strong positive sentiment: perpetual funding rates are consistently positive, open interest in futures contracts is rapidly increasing and options skew remains firmly positive.

Open interest in futures has surged, indicating heightened market participation and a growing interest in leveraged exposure due to recent price movements. Similarly, open interest in perpetual contracts has sharply increased, fueled by rising trader confidence and a growing demand for leveraged positions in light of recent market rallies. Meanwhile, the implied volatility term structure continues to invert in alignment with spot price increases, demonstrating a sustained correlation between spot prices and volatility.

Please check out the report’s highlights.

Futures Open Interest Reaches ATH Along With Price

Perpetual swap open interest has been increasing alongside futures, with a consistent rise in open positions over the past week reaching all-time high activity levels. This trend suggests that traders are actively pursuing leveraged exposure in response to the ongoing spot rallies, aiming to capitalize on the rising spot prices. Notably, there’s been renewed interest in Ethereum (ETH), reflected in rising trading volumes. 

Perpetual swap funding rates have reached exceptionally positive levels, indicating that long positions are confident enough to pay these rates to sustain their leveraged exposure. This trend has consistently been observed across all tokens, with a noticeable rise in funding rates since Nov 10, 2024. The persistently high funding rates highlight the strength of the bullish sentiment, which is also evident in the increasing open interest in futures contracts. This aligns with the recent spot price action, demonstrating significant upward momentum.

Option Volatility Term Structure Inverts 

The implied volatility term structure for Bitcoin has inverted amid the recent spot rallies over the past few weeks, indicating heightened market uncertainty and expectations of imminent price movements. However, levels haven’t exceeded the highs seen before the elections, and longer-dated tenors remain firmly range-bound. Concurrently, open interest in Bitcoin options has risen significantly, with a notable increase in put trading volumes. Open interest in puts has slightly surpassed calls, despite the persistently bullish market outlook indicated by the volatility smile skew.

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Nov 20, 2024): Market Becomes Extremely Positive About Bitcoin as Volatility Curve Turns Invert

Learn how to join Bybit's VIP Program, where you can realize exclusive benefits — from up to 50% off trading fees and tailored interest rates to instant OTC trades up to $10M.

With the Bybit VIP Program, you can realize exclusive benefits — from up to 50% off trading fees and tailored interest rates to instant OTC trades, Bybit Card cashback and more. Joining the ranks of the very best traders on the platform will boost your profitability, raise your limits and offer access to VIP-only perks.

 and guides you through the steps to become a VIP trader and unlock exclusive benefits. Let's get started!

 is an exclusive club for the most esteemed traders in the crypto market. It’s designed to provide members an enhanced Bybit experience with numerous VIP-only benefits and perks. The program aims to reward avid traders who have high volumes, account equity levels and borrowing activities.

The Bybit VIP Program offers a multitude of benefits for members. These range from discounted trading fees and high limits for withdrawals and application programming interface (API) trades to priority Bybit customer support access, relationship managers and exclusive VIP events and meetups. You can find the full list of VIP exclusive benefits 

Requirements to Become a Bybit VIP Trader

You’ll need to fulfill a specific level for one of the criteria below to become a VIP trader on Bybit:

Bybit's VIP Program features six distinct tiers: 

. Each successively higher tier offers greater rewards, and also comes with more stringent qualification requirements. For instance, as a 

 trader, you’ll enjoy reduced trading fees, such as 0.03% for makers and 0.045% for takers in the spot market. To qualify for this exclusive tier, you must meet at least one of the following criteria:

Once you become a VIP trader, you must continuously meet the above criteria to maintain your Bybit VIP status and keep enjoying the benefits. 

However, this doesn't mean your account will immediately lose its VIP status and revert to standard after a single day in which you don’t meet the requirements. Bybit offers a 14-day grace during which you can continue enjoying VIP perks and benefits, even if you no longer meet the program's conditions. If the criteria are not met by the end of this period, your VIP status will automatically be revoked. However, if that occurs, you can regain your status by fulfilling the requirements for any VIP tier either during or after the grace period. When this happens, Bybit will grant you a new 14-day grace period.

How to Sign up to Become a Bybit VIP Trader

In the following section, you'll find a step-by-step guide that shows you how to join the Bybit VIP Program.

The first step to becoming a VIP trader is to open a Bybit account (if you haven't already done so). Simply 

 and fill out the form with your details. After registering, you’ll need to verify your account to enjoy the platform's full functionality.

Next, fund your Bybit account with crypto or fiat currency.

You can deposit cryptocurrencies by using the 

 menu. On the page, choose your desired coin and the blockchain where you'll be depositing the assets. To avoid any loss of funds, please always ensure that you're transferring crypto from the correct chain.

Next, copy-and-paste the wallet address displayed on the page, or scan the QR code with your smartphone's camera, and initiate the deposit from your wallet. After a few confirmations, your cryptocurrencies will be credited to your Bybit account.

To fund your Bybit account with fiat currency, click on the 

 button and select one of the available services (e.g., 

 service, choose a fiat currency, the deposit amount and one of the available payment methods. After clicking on 

, follow the instructions displayed on the next pages to initiate the transaction. Your funds will be credited to your Bybit account, with processing times varying according to your chosen service and payment method.

After you have a verified Bybit account funded with either crypto or fiat, perform eligible activity on the platform until you qualify for VIP status (see table below).

You can achieve VIP status by fulfilling a minimum level of VIP 1 in either of the following categories (

After becoming a VIP trader on Bybit, don't forget to maintain your VIP status to continue enjoying the exclusive perks and benefits.

If you have active VIP status at another crypto exchange, or your total MT5 trading volume meets Bybit's VIP criteria, you can apply for a VIP+2 upgrade. This upgrade will grant you VIP status on the platform — and instantly elevate it by two levels. (Please 

 that Bybit only considers 10% of any MT5 forex trading volume.)

 and submit your 30-day trading volume on your current exchange. Bybit’s VIP team will review your application, and a Relationship Manager will contact you if you're eligible for the VIP upgrade.

How to Get Started With a 20-Day Bybit VIP Trial

Another way to qualify for VIP status on Bybit is through a 20-day trial. Instead of fulfilling the requirements of the VIP 1 level, simply fund your account with $50,000 to enjoy the exclusive benefits of the program for 20 days with a VIP Trial Card (issued one day after your deposit). The VIP trial offer is available to users who haven't used a trial within the past two months.

To unlock the 20-day VIP trial, head to the 

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With VIP Level-Up Tasks, you can earn generous bonuses as high as 6,000 USDT. You can claim rewards for Level-Up Tasks for five VIP levels (VIP 1, VIP 2, VIP 3, VIP 4 and VIP 5), with higher tiers offering greater bonuses upon completion.

If you're eligible, you’ll see a pop-up window with VIP Level-Up Tasks after you log into your account. To claim your rewards, complete the specified trading volume requirement within 14 days of receiving the task, and click on the 

 page. You can learn more about Bybit VIP Level-Up Tasks

Exclusive Trading Benefits Offered to Bybit VIPs

As a member of the Bybit VIP Program, you can unlock exclusive benefits to supercharge your trading experience. Among these are discounted trading fees (which can significantly boost your trading revenue), profitability and chances of winning trades.

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 is an exclusive club that provides an enhanced service experience for the most esteemed traders. As a member, you can access a multitude of exclusive benefits and perks, such as the following:

Are you ready to supercharge your trading experience? 

Intermediate

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How to Become a Bybit VIP: Your Guide to Exclusive Benefits

LETSTOP is a drive-to-earn mobile app that monitors phone distractions while driving. Learn more about how it works in this article.

Smartphone distractions have created an unprecedented road safety crisis worldwide. 

: texting behind the wheel makes drivers six times more likely to crash than drunk driving does — yet millions of drivers still use their phones while operating vehicles.

This article explores how LETSTOP is transforming safe driving into rewarding experiences through blockchain technology. We'll examine its drive-to-earn model, reward system, tokenomics and potential as both a road safety solution and an investment opportunity.

 is a drive-to-earn mobile app that monitors phone distractions while driving. Users earn STOP tokens for phone-free driving through a gamified system that transforms daily drives into rewarding experiences.

A life-changing car accident caused by a distracted driver running a red light inspired LETSTOP co-founder Almog Nissan to reimagine road safety. Together with co-founder and CEO Dor Levy, they envisioned rewarding safe driving, rather than just punishing dangerous behavior.

The founders built a platform that combines automotive technology, cryptocurrency and AI to revolutionize road safety through rewards. This innovative approach has quickly gained traction, with over 50,000 users logging over 3 million kilometers of safe driving since the app’s launch.

Distracted driving claims thousands of lives annually, with 

, of which 9% are directly linked to phone use. LETSTOP aims to tackle this crisis as follows:

Each of these objectives works harmoniously to support LETSTOP's ultimate mission of transforming road safety into a rewarding experience that benefits both individual drivers and society.

The LETSTOP app operates through a sophisticated system that monitors and rewards safe driving through the following apps and features:

The result is a dynamic system in which better driving habits unlock greater earning potential.

The following five core features power LETSTOP's drive-to-earn ecosystem.

LETSTOP uses a dynamic 40-level system to make safe driving rewarding. As drivers earn XP through distraction-free journeys, they advance from Level 1's 2% bonus toward Level 40's 70% boost. Through this gamified approach, daily commutes become opportunities to climb the ranks while building safer driving habits.

LETSTOP Credits are the core currency of the platform, earned directly through safe driving achievements. Earning rates directly scale with user level, vehicle type and subscription tier as follows: PRO subscribers enjoy unlimited earning potential, while PLUS and LITE tiers are capped at 300 and 150 monthly credits, respectively.

In the STOP Store, users invest their earned credits into virtual cars with unique earning multipliers. From the basic model's 2% bonus to the Jazzster GN's 150% boost, each vehicle offers different strategic advantages for maximizing rewards.

Beyond vehicles, the store features mystery boxes containing rewards from 10 to 450 credits, as well as car upgrades and subscription boosts. Users can also access a voucher marketplace to redeem credits for real-world rewards through LETSTOP's partnership network.

LETSTOP's triple-boost system combines vehicle multipliers for immediate earnings acceleration, a level-progression system for sustained growth and a 5% referral program for community expansion. Premium membership unlocks enhanced benefits across three tiers, while special events create time-limited opportunities for increased rewards.

The platform's comprehensive rewards system operates across three membership tiers, each one tailored to different user needs. LETSTOP PRO (at $9.90 monthly) offers unlimited credit earning potential and exclusive benefits. The PLUS tier provides a balanced option at $4.90 monthly with a 300-credit earning cap, while the free LITE tier allows users to earn up to 150 monthly credits.

Beyond direct earnings, the rewards system incorporates partner vouchers, cryptocurrency conversion options and community features, such as leaderboards. Achievement rewards recognize milestones in users' safe driving journeys, while the upcoming cryptocurrency integration will allow users to convert their efforts into tradeable STOP tokens.

LETSTOP has shown consistent progress, with the following key milestones already achieved:

Looking ahead to 2025, LETSTOP plans to implement the following key developments:

These developments aim to strengthen LETSTOP's position as a leader in drive-to-earn while furthering its mission to enable safer roads worldwide.

STOP is an SPL token built on the Solana network. It’s designed to bridge safe driving behavior with cryptocurrency rewards. The STOP token implements an annual halving mechanism to ensure long-term value preservation, similar to Bitcoin's model, but accelerated to align with the project's growth trajectory.

STOP has a max supply of 100 million tokens, to be distributed in the following manner:

The growing adoption of LETSTOP's drive-to-earn app and its impact on road safety directly influence STOP's price trajectory. While cryptocurrency forecasts remain speculative by nature, multiple price analysis platforms project the following for STOP:

These forecasts suggest a positive long-term outlook for STOP, driven by the growing drive-to-earn sector and LETSTOP's innovative approach to road safety. However, STOP's future value will ultimately depend upon user adoption, platform development and broader market conditions.

Looking to trade LETSTOP tokens? Bybit now offers the STOP/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

STOP shows promising potential in the drive-to-earn sector, though investors should carefully weigh both its strengths and potential risks before making investment decisions.

While STOP's innovative approach to road safety and its strong initial traction distinguish it in the market, potential investors should 

 and invest no more than they can afford to lose.

As smartphone distractions continue to endanger lives on roads worldwide, LETSTOP offers an innovative path forward. Through its innovative drive-to-earn model and STOP token ecosystem, the platform transforms daily commutes into safer roads and user earnings opportunities, showing how digital innovation can effectively “drive” positive behavioral change.

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LETSTOP (STOP): Turning Daily Rides Into Profitable Journeys

FDUSD, a stablecoin from First Digital Labs, is now live on Sui as a native token, joining other stablecoins like USDC and AUSD.

The S&P 500 ended flat amid mixed earnings and geopolitical concerns, as investors awaited Thursday's data and Fed commentary. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 2.01%, with Bitcoin rising by 1.91% and Ether dropping by 0.59%, in the past 24 hours.

Today's top performer is LUMIA, which surged 16.1% following the announcement of its partnership with Cobox to bridge real-world assets and virtual ownership.

Lumia (LUMIA), founded in 2024, is a Layer 2 blockchain solution leveraging the Polygon CDK to enhance scalability, liquidity, and interoperability. It addresses challenges like data availability and cross-chain interactions by incorporating AvailDA for decentralized data and Polygon AggLayer for cross-chain functionality, enabling efficient and flexible dApp development. 

 to integrate real-world assets (RWAs) into its immersive, player-owned universe. This collaboration aims to enhance asset liquidity, trading, and gameplay experiences, bridging digital and physical realms for more tangible and vibrant virtual ownership.

Check Out the Latest Prices, Charts, and Data of 

, a stablecoin from First Digital Labs, is now live on Sui as a native token, joining other stablecoins like USDC and AUSD. This launch reflects growing institutional confidence in Sui, which has seen significant growth in TVL and DeFi volume. FDUSD, backed by reserves in Asian banks and US Treasury debt, offers DeFi users a reliable, US Dollar-pegged stablecoin, bridging traditional finance and cryptocurrency ecosystems.

Yesterday, the total flow into Bitcoin Spot ETFs is $146.9 million, with $0 million in GBTC and $146.9 million in non-GBTC products.

: the Spotlight Badge, which requires minting through the Spotlight Protocol and joining a Spotlight circle; the Impossible Finance Badge, which involves completing social tasks, claiming the TIDIA faucet, staking TIDIA on Impossible Finance, and then claiming the badge; and the SNGLR Badge, where users connect their wallet, follow artists, mint IP assets, tweet, and provide personal details to claim their badge. More badges are coming soon!

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FDUSD Launches as Native Stablecoin on Sui, Strengthening DeFi Ecosystem

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Bitcoin

Bitcoin Layer 2 solutions help with scaling by selecting the information they pass back and forth. Learn more about them here.

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Bitcoin's position as the most popular cryptocurrency can be both an advantage and a problem for it. The Bitcoin ecosystem is one of the most secure and dependable options available, but having so many people rely on the Bitcoin network can also lead to congestion. During busy times of day, transaction speeds slow and 

. One potential solution to this problem lies in Bitcoin Layer 2 technologies. Keep reading to find out how these scaling solutions work, and to discover the best current Bitcoin Layer 2 options.

A Bitcoin Layer 2 solution is a protocol that runs alongside the main Bitcoin chain. It improves Bitcoin's scalability, so the network can handle large amounts of transactions without a reduction in transaction speed or an increase in transaction prices.

How Does a Bitcoin Layer 2 Solution Work?

Bitcoin Layer 2 solutions are essentially independent blockchains that contain Bitcoin-compatible 

 and software. They have the ability to process transactions, just as the Bitcoin network does. A Layer 2 accepts and manages a variety of transactions, such as payments, trades and data storage. With Bitcoin, the Layer 2 system is connected to the main Bitcoin chain, so it passes the record of these transactions to Bitcoin and can pull data from Bitcoin when necessary. It runs alongside Bitcoin, and is constantly updating to stay in step with the main chain.

Bitcoin Layer 2 solutions help with scaling by being selective about the information they pass back and forth. Instead of processing every single transaction on Bitcoin, one at a time, a Bitcoin Layer 2 processes transactions off-chain and only sends essential information to the main Bitcoin chain. For example, a Bitcoin Layer 2 that handles payments might only store payment confirmations on Bitcoin, instead of using the network for every step of requesting, transferring and receiving the payment.

Some Layer 2s make transactions even more efficient by bundling together information and posting it on Bitcoin as a single block, as opposed to several individual statements. Others use special algorithms to encrypt and compress information into smaller transactions. These sorts of features reduce the computing power needed for multiple transactions, making the whole blockchain ecosystem more efficient.

Pros and Cons of Bitcoin Layer 2 Solutions

Bitcoin Layer 2 solutions are just one of many scaling options. Here's what you need to know about the pros and cons of Bitcoin Layer 2 designs.

Bitcoin Layer 2 networks come with the following advantages:

Bitcoin Layer 2 networks do have some potential downsides to be aware of, as follows:

As one of the earliest blockchains, Bitcoin is one of the networks that needs Layer 2s the most. The base Bitcoin chain is missing a lot of the functionality found in other systems, such as Ethereum or Solana. Many users believe that Layer 2s are one of the best ways of modernizing Bitcoin and expanding its utility. They add additional programming options and features that users need for modern web3 systems. This ensures that Bitcoin can maintain its position as the premier blockchain, instead of being ousted by other chains capable of running modern trends, such as 

The most obvious impact Bitcoin Layer 2 systems have on the main chain is their ability to handle congestion. Every time a Bitcoin Layer 2 goes online, it helps tackle some of the unnecessary transactions that Bitcoin would otherwise have to handle. This results in lower transaction fees and higher transaction speeds for everyone who still uses the main chain. Research estimates that Bitcoin Layer 2 solutions can 

To better understand what a Layer 2 has to offer the Bitcoin ecosystem, it's useful to take a look at some examples. Here are a few of the most popular current Bitcoin Layer 2 options in the blockchain ecosystem.

 is one of the most popular Bitcoin scaling solutions. It uses a method called channels to more efficiently process transactions off-chain. This strategy lets users communicate with each other through an individual connection. Each channel lets a person send as many transactions as they'd like, back and forth, with only the final results recorded on the main chain.

Lightning Network's ability to increase transaction throughput is a benefit that’s mostly utilized for payments. Therefore, security is essential. It uses 

 (HTLCs) and multi-signature transactions to help users transfer funds and process payments without running into security issues.

The design of Lightning Network has proven to be efficient, with a processing speed of around 1 million transactions per second (

), while Bitcoin only has a TPS of around 10. Furthermore, the transaction cost for users working on the Lightning Network is usually just $0.001. Especially during the Bitcoin price surge of late Feb 2024, Lightning Network's services have been extremely valuable. Since Bitcoin has recently reported over 100,000 extra transactions per day, Lightning Network's scaling solutions have saved users a lot of time and money.

, which runs on the Rootstock chain, is another popular option. Rootstock is inspired by Ethereum virtual machine (

) scaling solutions. It's a sidechain that uses a proof of work (

 to simultaneously mine both Bitcoin and Rootstock (RSK). As transactions are validated, Rootstock bundles them and sends them to Bitcoin to merge the two chains' histories.

Rootstock is only slightly faster than the main Bitcoin chain. Its bundling methods allow some scaling, but the PoW mining method still slows it down. It tends to have a TPS rate of around 20 to 300, which at times is just twice the speed of Bitcoin. The main benefit of Rootstock outside of slightly increased transaction speed is its in-depth set of smart contracts. Developers can use Rootstock and the Rootstock Infrastructure Framework for a variety of storage, payment and naming solutions. It also offers a variety of helpful integrated features, including a rollup service and a wallet for users.

The current interest in Bitcoin has led to a lot of opportunities for Rootstock. Though most people don't rely on it for fast transaction processing, Rootstock's system has attracted the attention of traders who like using DApps to handle their Bitcoin. 

Bitcoin's price spike has also been promising for Rootstock's native token, which is called Rootstock Smart Bitcoin (RBTC). When BTC prices began to climb on Feb 25, 2024, RBTC prices also took off. The coin is designed to match Bitcoin’s price one-to-one, so its price always mirrors that of BTC. For those who help to maintain Rootstock’s network security by mining RBTC, this price spike has been quite favorable.

Liquid Network is a Bitcoin sidechain. It operates in parallel with Bitcoin and aims to increase scalability by sharing the computing power load with Bitcoin. Liquid’s native token, Liquid Bitcoin (L-BTC), corresponds to Bitcoin in price and helps to back the network’s transactions with reliable collateral. Users swap their Bitcoin for Liquid Bitcoin, conduct as many transactions as they desire on the sidechain and then turn it back into regular Bitcoin.

Liquid Network specializes in secure, private transactions. Unlike some other Layer 2 systems, Liquid has special protocols in place to ensure users' transactions are confidential and entirely safe. It also has smart contract capabilities with features such as trustless 

 between users. Many people choose Liquid when they're working with large amounts of crypto or a high volume of transactions.

Liquid Network's scalability has been useful for investors during Bitcoin's price spike. Its network has a TPS roughly double that of Bitcoin, but its real value is in the size of the transactions it can handle. Since it posts far more blocks per hour than Bitcoin, Liquid can handle vast sums of data. Up to 

 can be processed at a time, while Bitcoin can only handle around 450 vbytes per transaction. This makes Liquid ideal for busy times, when traders are buying and selling every few minutes to take advantage of minute price shifts, but don't want to pay pricey transaction costs.

 is a type of blockchain technology that relies on participation from community members known as Stackers, STX token holders who validate and approve blocks. The system’s proof of stake (

) system requires less computing power while still ensuring each block on the Stacks chain is valid. Stacks further scales Bitcoin by adding extra protocols to its blockchain. These smart contracts help to manage complex transactions off-chain, so less data needs to be transmitted to Bitcoin’s network.

Stacks is one of the Bitcoin Layer 2 systems that aims to mimic the design of the Ethereum blockchain, which includes the ability to design projects that wouldn't be operable on Bitcoin. People can design web3 products with ease on Stacks, and the Layer 2 then translates the more complex language into simple transactions that Bitcoin's base chain can handle.

STX's recent price movements provide a unique look at how Bitcoin's prices affect related chains. The token doesn’t match Bitcoin's price one-to-one, but it still follows the same general price patterns as Bitcoin. After sitting at around $2.50 for a year, STX soared to $3.34 when Bitcoin's prices started trending upward in February 2024.

This community-driven project aims to tackle several Bitcoin issues at once. By running an additional layer of smart contracts alongside the Bitcoin blockchain, 

 can process transactions off-chain, which speeds up the main Bitcoin chain by moving several essential types of transactions off-chain. Conflux uses a 

 that provides PoW and PoS systems to obtain a transaction processing speed of 3,000 TPS.

Conflux is one of the most versatile Bitcoin Layer 2 networks. Its system is fully EVM-integrated, so it can handle a broad range of assets. In addition to using Conflux to scale Bitcoin, you can also use it for transferring assets between chains and minting a variety of 

 and ARC-20 tokens. This makes Conflux ideal for users who want to run 

 (DeFi) projects or work with complicated smart contracts.

Since the February 2024 price surge, Conflux has been able to support a lot of DApps running on Bitcoin. People who rely on the blockchain for assistance with daily tasks, such as running a DeFi app, often struggle with crypto trends randomly bogging down transaction throughput. Companies that choose to rely on Conflux's decentralized finance services have found they can keep running smoothly, no matter how high Bitcoin's price goes.

, which means it's a blockchain that started out identical to Bitcoin and then gradually differentiated as its creators added more features. To help with scalability, Drivechain has multiple large-block sidechains. These chains process larger blocks of data, so they can handle larger transactions than the main chain can. The system also uses a type of security mechanism called a 

 escrow, which allows users to maintain token value as they move between the mainchain and the Layer 2 network.

Drivechain was created by LayerTwo Labs with the mission of improving user experience (UX) and reducing public reliance on non-Bitcoin tokens. The focus is on adding extra functionality that makes the main network more straightforward to use. Drivechain's mission also involves more experimentation: the LayerTwo Labs team believes that Bitcoin has stagnated, and wants its forks to become a testing ground for new innovations.

The Drivechain design offers several benefits for users during Bitcoins' price spike. It features payment channels that boast instant transactions without high fees. These fast transaction speeds are ideal for users who are rushing to purchase Bitcoin at the optimal moment. Furthermore, Drivechain offers some additional privacy features that are helpful for users who want to take advantage of BTC prices without compromising their identities.

Omni Layer is an open-source asset platform created by 

. It functions as a meta-layer of software that runs on top of Bitcoin. Its smart contract capabilities allow users to access a variety of DApps on Bitcoin. Omni Layer can leverage Bitcoin's security and processing power while also expanding Bitcoin's utility. One of the most unique methods it employs is altering Bitcoin transaction metadata. After processing transactions on the Omni Layer, the system takes bundles of transaction data and adds them to Bitcoin transaction metadata. This allows information to be stored on the main chain without needing to actually validate every transaction on Bitcoin’s network.

Omni Layer has many potential uses in the Bitcoin community. Originally, it was used primarily for trading and creating cryptocurrencies. Users can create 

 and then trade them with other members. Since Omni Layer is connected to Tether, its most popular coin is the USDT stablecoin. Because this Bitcoin Layer 2 has both scaling and programming capabilities, it's popular with users who want to extend Bitcoin's functionality as a tradeable coin.

 for Omni Layer. However, due to the market demand for USDT, Omni Layer has still played an important role in the Bitcoin price surge of 2024. Users can continue to redeem coins on Omni Layer until August 2024. While the network was stagnating, the impressive BTC price boost has encouraged many users to rush to Omni Layer and make sure they redeem their assets before the deadline.

Rollkit is a Layer 2 that uses a special type of scaling solution called a 

, sovereign rollups don't involve processing all transactions off-chain. Instead, Rollkit uses a blend of both the Bitcoin main chain and its own proprietary software to bundle rollups. This provides better security than some types of zero-knowledge proofs, while also ensuring that transactions are processed at a faster rate.

The Rollkit scaling solution is relatively new to Bitcoin. It was initially a Layer 2 designed for the 

 blockchain. However, its ability to take multiple transactions and bundle them into a single, compressed transaction has also attracted attention from the Bitcoin chain. Therefore, its developers decided to retrofit their technology and create a version that could leverage Bitcoin's security for processing transactions and extend Bitcoin's functionality.

Rollkit's services have attracted some attention in the wake of the Bitcoin price surge. As one of the only services offering sovereign rollups on Bitcoin’s blockchain, Rollkit is uniquely positioned to help developers. People looking for a faster and more efficient way of designing DApps may turn to Rollkit as the solution to their problem.

The Dovi Layer 2 network relies on the EVM for scaling, using the flexible design and smart contract capabilities of Ethereum to process Bitcoin transactions while lowering transaction costs. Dovi incorporates 

 to further improve security. These multi-signature authentications are ideal for confirming transactions in an efficient manner. Moreover, by optimizing block space, Dovi can process transactions more efficiently and speed up transaction processing times.

While Dovi does make the Bitcoin transaction process more efficient, its main aim is to improve the network's capabilities. Dovi contains a variety of flexible smart contracts that developers can use to create projects. It supports cross-chain communications and has an interoperable design that lets it run on multiple systems. This allows people to explore all of Bitcoin's classic services while also using more modern blockchain functionalities.

Dovi is still a fairly new Layer 2, so it hasn't had many chances to show what it can do yet. However, the recent pump in BTC prices has greatly motivated the Dovi community. Even though this Layer 2 hasn't assisted with many transactions during the price surge, its value has gone up a lot. Interest in BTC resulted in positive attention that gave the project's native token a chance to grow. DOVI tokens that were retailing for around $0.40 in mid-February are now worth around $0.60 as of early March 2024.

Many crypto enthusiasts believe that the 

 is increased programmability and functionality. There is a real need for Layer 2s that address Bitcoin's unique design instead of simply copying the scaling Layer 2s found on Ethereum. By offering more smart contract capabilities and programming options, Layer 2s could potentially allow developers to build more projects on Bitcoin. Potentially, the new Bitcoin Layer 2 explosion could help Bitcoin move beyond investing and payment processing and begin to focus on software and games instead.

Layer 2s on Bitcoin are also likely to lead to more integration with other projects in the future. 

 is a major focus for the web3 community right now, and the right Bitcoin Layer 2 project could make the network much more compatible with other systems. Not only can they work with web3 games, social media and exchanges, but Layer 2s can also make it easier to integrate Bitcoin into traditional financial systems. These implications could provide even more positive benefits beyond the scaling that Layer 2 systems currently provide.

Another trend to watch for in Bitcoin Layer 2 networks is a focus on user experience. Many developers are currently working on ways to make blockchain networks more accessible to the average user. Existing blockchains can feel overwhelming or confusing to people who aren't technologically proficient, but Layer 2s can help. By adding a cleanly designed user interface on top of the main Bitcoin chain, these technologies make it more straightforward to transfer funds or make payments. The most successful Layer 2s in the future may be the ones that do a good job of enhancing user experiences.

Ultimately, Bitcoin Layer 2 networks are an essential part of modern web3 development. If Bitcoin wants to maintain its position as one of the leading blockchain networks, it needs a way to process transactions quickly and affordably. Fortunately, many developers have decided to tackle Bitcoin's scaling challenge, so there are a lot of different Bitcoin Layer 2s for people to choose from when they want to reduce transaction fees and extend Bitcoin's functionality.

The Best Bitcoin Layer 2 Projects Fueling Bitcoin's Growth

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