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Top Bitcoin Layer 2 Projects to Watch in 2025

Aug 5, 2025 · 2 mins read

In recent years, Bitcoin has a bit of an image problem.

It’s the most secure blockchain on earth, no doubt. But try building apps on it, launching NFTs, or experimenting with DeFi... and it feels like trying to run a modern app on Windows 95.

For years, Bitcoin sat comfortably in its store-of-value throne while other blockchains sprinted ahead with programmability and UX. Ethereum, Solana, and others became the playgrounds for Web3 innovation

Even when projects like ICP pushed boundaries around decentralization and ownership, the lack of native Bitcoin integration became a constant blocker.

Why is building on Bitcoin still so limited?

For developers, it’s been a frustrating grind.

Smart contracts? Not native.

Micropayments? Expensive and delayed.

Token standards? A total mess, with no consistent framework like Ethereum has.

Trying to build anything dynamic on Bitcoin has felt like being handed the world's strongest engine, without any wheels. Way too slow and expensive to be practical. You know there’s power under the hood, but you’re stuck revving in place.

The irony? Bitcoin has all the value and trust everyone wants… but none of the tools to actually unlock it.

1. Stacks - Smart Contracts Without Leaving Bitcoin

Stacks lets you build apps on Bitcoin - real ones, with smart contracts, NFTs, and even DeFi. It does this through something called Proof-of-Transfer, which anchors everything back to the Bitcoin chain for security. You get full programmability like Ethereum, but with Bitcoin as the foundation. If you're building anything beyond basic payments, this is a solid place to start.

Key Features:

Brings smart contracts to Bitcoin
Built-in support for NFTs and DeFi

2. Lightning Network - Bitcoin Payments That Actually Feel Instant

Lightning makes Bitcoin usable for real-time payments, seriously. It opens payment channels that let BTC flow instantly and basically for free. This is what powers tipping, subscriptions, and even coffee shop payments. It’s one of the most adopted L2s out there for good reason.

Key Features:

Instant BTC transactions with tiny fees
Perfect for micro and everyday payments

3. Rootstock (RSK) - Ethereum Features, Bitcoin Backbone

RSK is like running Ethereum on top of Bitcoin’s security. It’s a sidechain that uses merged mining with BTC, and it supports the same smart contracts you’d write for Ethereum. So if you’re already used to Solidity, this makes it easy to port over. Think full-featured dApps, with Bitcoin as the trust layer.

Key Features:

EVM-compatible sidechain backed by Bitcoin miners
Easy migration for existing Ethereum projects

4. Liquid Network - Fast, Confidential, and Token-Ready

Liquid is built for speed and privacy, with some powerful features under the hood. You can send BTC faster, issue your own assets (like stablecoins), and keep transactions confidential. It’s aimed more at exchanges and institutions, but devs can do a lot with it too. The privacy layer here is a standout.

Key Features:

Confidential transactions and token issuance
Designed for faster BTC settlement

5. Merlin Chain - A Modern Take on Bitcoin Scaling

Merlin launched in 2024 and has been gaining traction fast. It uses zk-rollups to scale Bitcoin while staying compatible with both BRC-20 tokens and the EVM. That means you get the best of Bitcoin’s trust and Ethereum’s flexibility. It’s a forward-thinking project that’s already attracting dev attention.

Key Features:

Scalable with zk-rollups and EVM support
BRC-20 ready and built for interoperability

6. Dovi - Privacy and Speed Without Compromise

Dovi puts privacy front and center while still supporting fast, modern dApps. It uses Schnorr signatures, supports multiple token types like BRC-20 and ARC-20, and is fully EVM-compatible. It’s also built with a strong community-first mindset—open, transparent, and focused on real use. If you're building something that needs both speed and stealth, Dovi’s worth a serious look.

Key Features:

Privacy-focused with support for multiple Bitcoin token standards
Fast, EVM-ready, and community-driven

Final Thoughts

Bitcoin isn’t getting replaced, it’s getting upgraded.

With Layer 2s unlocking smart contracts, fast payments, and token support, Bitcoin is finally usable beyond just holding.

Tools like BlockSurvey can now plug in to this force, enabling token-gated feedback collection and wallet-based verification for Bitcoin-natives. Sign up and try now!