Bitcoin (BTC, “A”) is undoubtedly the most famous cryptocurrency.
And, thanks to its surging strength, it is making headlines again.
This is the part where I put in its current trading price, and since starting to write, I’ve already had to update it quite a few times!
But the latest data — entered right before we hit the publish button! — has BTC trading near $90,800.
Clearly, excitement is building for what could be the start of a multi-year rally. While market fluctuations are inevitable, Bitcoin’s future growth isn’t just about its price.
Rather, much of the excitement in the market is for the technology evolving behind the scenes.
Today, Bitcoin is transitioning from a simple store of value to a multifunctional ecosystem.
It’s a big change. Divisive, too.
To fully understand how we got here and the impact this shift will have, let’s step back a bit first.
Bitcoin has come a long way since its launch in 2009. As the first decentralized cryptocurrency, it changed how we think about money and value.
But as its popularity has grown, so have its limitations.
Its proof-of-work consensus mechanism is slower than other chains’ various other mechanisms. This has restricted its use cases.
And while other crypto projects pop up with clever and unique purposes, Bitcoin’s main functionality has whittled down to a store of value.
In fact, I wrote back in April that Bitcoin’s lack of flexibility is a critical hurdle for Bitcoin’s future. (I suggest you read that real quick to catch up on all the details.)
It’s also a source of division among Bitcoin enthusiasts.
Some purists want Bitcoin to remain exactly as it is. But others, like MicroStrategy’s (MSTR) Michael Saylor, seem intent on building a plethora of applications on Bitcoin’s network.
And their revolutionary vision is more than just an abstract idea. It’s a strategic move to keep Bitcoin at the forefront of crypto by making it a competitive platform for decentralized innovation.
By growing the network's utility, the potential profits that are already significant for major investors would increase even further.
For now, though, Bitcoin still lags behind its competitors in this area. That’s because it was not designed to support applications that other blockchains, like Ethereum, handle natively.
But Merlin Chain (MERL, Not Yet Rated) aims to change that.
What Is Merlin Chain?
Merlin Chain is an advanced Layer-2 solution launched for Bitcoin in January 2024 by Bitmap Technology, the team behind innovations like the BRC-420 token standard.
Its mission, summed up in the playful tagline "Make Bitcoin Fun Again," is to transform Bitcoin into more than just a digital currency.
It aims to make Bitcoin faster, more efficient and capable of supporting complex use cases.
By addressing Bitcoin’s scalability and usability issues, Merlin Chain opens the door for faster transactions and lower fees.
And it can even integrate decentralized technologies like smart contracts and dApps to the OG network.
To do this, it uses three main tools:
1. Zero-Knowledge (ZK) Rollups
This technology allows transactions to be executed off-chain. This is done by grouping them into batches before submitting them to the Bitcoin mainnet as a single transaction.
Why is this important? Because it reduces network congestion, lowers fees and speeds up transaction times.
What sets ZK-rollups apart is their use of zero-knowledge proofs, a cryptographic technique that verifies transactions without revealing sensitive details.
Basically, it adds a layer of privacy while maintaining the integrity of the Bitcoin network.
2. Decentralized Oracle Network (DON)
Merlin Chain’s decentralized Oracle network collects, verifies and batches transaction data off-chain before uploading it to Bitcoin. All raw data is stored securely, and users can verify its accuracy using ZK proofs.
The Oracle network also includes a fraud-proof mechanism. If a transaction appears suspicious, validators can challenge its validity, prompting a resolution process to ensure accuracy and security.
3. EVM Compatibility
With this standout feature. Merlin Chain can connect Bitcoin wallets to Ethereum-based applications.
This allows Bitcoin users to interact seamlessly with Ethereum-based applications, including decentralized finance platforms and NFT marketplaces.
Places that were previously unreachable for Bitcoin users unwilling to bridge assets and open new wallets.
Now, EVM compatibility means users don’t need to take these extra — and sometimes costly — steps to access Ethereum’s ecosystem.
It’s a real game-changer for Bitcoin.
Merlin Chain’s Market Performance
The current momentum surrounding Merlin Chain reflects its growing potential.
As of the time of writing, MERL is trading near 34 cents, with a 24-hour trading volume of $35,778,873 USD.
Over the past 24 hours, its price has increased by 3.30%, signaling positive sentiment from traders and investors.
It also shows growing bullish interest as MERL approaches critical resistance zones. The price briefly wicked above the long-standing resistance at 40 cents, marking the first test of this breakout zone since June 2024. However, the move lacked follow-through, and the price remains below resistance.
A close above that key level will confirm a breakout and will likely initiate a move toward higher price levels.
If that happens, the next resistance level to watch will be near 78 cents, or just under a 2x gain.
Conclusion: A Bright Future for Bitcoin and Merlin Chain
Merlin Chain represents a bold step forward for Bitcoin, one that addresses Bitcoin’s most pressing challenges while opening new possibilities.
It is positioned to play a vital role in Bitcoin's next chapter with a growing market presence, a solid technical foundation and a focus on interoperability.
Whether you’re an investor, developer or crypto enthusiast, this is a project worth watching.
It may even redefine what Bitcoin can achieve.
Best,
Mark Gough
