TL;DR

🛠️ Merlin Chain Evolution

• EVM-compatible ZK Rollup for native Bitcoin assets.

• Kickstarted BTCFi with Babylon, Solv, Bedrock.

• Integrated AI with Merlin Wizard for smart routing.

🌟 Key BTC Contributions

• Brought account abstraction to Bitcoin Layer 1.

• Led BTCFi: BTC-backed stablecoins, LP farming.

• MBTC live on 20+ chains, boosting cross-chain liquidity.

🗺️ 2025 Outlook

• Hype faded, Merlin stayed focused.

• Real BTC yields now emerging.

• 2025: pivotal year to shape BTCFi’s future.

Q: What is Merlin Chain and how does it relate to Bitcoin?

Jeff: Merlin Chain is an EVM-compatible ZK rollup built to bring native Bitcoin assets—like sats, Ordinals, NFTs, and tokens such as USDT/USDC, into the DeFi world by bridging them into the EVM ecosystem. It launched in February and quickly grew to nearly $5B in TVL by April.

Merlin helped kickstart the BTCFi movement by partnering with and partnered with major projects like Babylon, Solv, and Bedrock. The core idea is to activate idle Bitcoin (worth $1–2 trillion) by enabling it to earn yields, similar to how stablecoins and PoS assets do.

Today, BTCFi is growing rapidly across multiple chains, and Merlin continues to lead by integrating AI into its products—like, the Merlin Wizard series—enabling chain abstraction, smart asset recommendations, and simplified cross-chain transactions.

Merlin's vision is to make Bitcoin a productive asset and to drive the future of BTCFi by combining DeFi, AI, and cross-chain usability.

Q: How has Merlin Chain contributed to the growth of the Bitcoin ecosystem?

Jeff: Over the past year, Merlin Chain has focused on two core innovations: account abstraction and BTCFi.

Merlin was one of the first to introduce account abstraction to Bitcoin Layer1, enabling unified accounts that bind EVM and Solana addresses under a single private key. This makes cross-chain trading seamless and lays the foundation for universal accounts like UniversalX, where users can buy tokens across chains with one account.

On the BTCFi front, Merlin partnered with key players like Solv to unlock Bitcoin’s yield potential. Strategies included minting stablecoins from BTC and farming with high returns, or using BTC as LP on platforms like Solana’s Jupiter for native BTC yield.

Currently, MBTC is live on 20+ chains, expanding liquidity and earning opportunities. These efforts in abstraction and BTCFi have significantly advanced Bitcoin's utility across the broader crypto ecosystem.

Q: How did Merlin Chain maintain dev and community engagement during market volatility in 2024?

Jeff: When Merlin Chain launched in early 2024, Ordinals were at their peak, attracting attention from across ecosystems, including Solana, Ethereum, and even the TON Network. We used that momentum to engage not only Bitcoin-native users but also broader communities during our staking phase.

As interest in Ordinals and Runes declined, we quickly pivoted to BTCFi — anticipating that Bitcoin holders would seek high-yield opportunities in the next bull cycle. Our early work with Solv helped introduce this narrative, and now more teams are building in this space.

We’ve always aimed to stay ahead of the curve — whether with BTCFi or AI integration. While some doubted AI's role in Bitcoin, we began building in that direction early, recognizing its long-term potential. Our strategy is to take calculated risks and build toward the next breakthrough, rather than chasing short-term hype.

Q: What’s next for Merlin Chain in 2025?

Jeff: In 2024, the hype around Bitcoin Layer 2s led to a flood of projects, but most of them have since faded. This shows how people tend to overestimate short-term potential and underestimate long-term value.

Now, the ecosystem is entering a more mature phase. Builders are shifting focus from hype to substance — especially on BTCFi, where we're beginning to see real Bitcoin yields for the first time. As superficial narratives fade, the core value of what we’re building becomes clearer.

I believe 2025 is a make-or-break moment. The window of opportunity is small, but it's open. If we move quickly and deliver, we can define the future of Bitcoin Layer 2. That's why I'm truly excited about what lies ahead.