BRC2.0 Brings EVM-Powered DeFi and NFTs to Bitcoin

Published: 2025-09-07 02:22:57 |

On September 2, 2025, at Bitcoin block 912,690, the Ordinals team Best in Slot and BRC20 founder Domo launched BRC2.0. This upgrade embeds the Ethereum Virtual Machine (EVM) into the BRC20 protocol, enabling Turing-complete smart contracts on Bitcoin. With BRC2.0, developers can deploy DeFi protocols, NFT marketplaces, lending systems and synthetic assets directly on the Bitcoin network. Early ecosystem milestones include BiS DEX v1, which recorded over $200,000 in 24-hour trading volume, and token issuance support via UniSat. CatSwap is developing an AMM, while Adderrels has launched NFTs and the ACORNS token. Wrapped Bitcoin solutions (LBTC, CBTC, FRBTC) and stablecoin infrastructure are expected within two months, offering new liquidity pools and trading pairs. However, BRC2.0 relies on an off-chain sequencer to execute contract logic, introducing centralization and single-point-failure risks. Bitcoin’s 10-minute block time also limits throughput and exposes AMMs to MEV attacks. Advanced sequencer-based AMM designs are in development to mitigate MEV and boost transaction speed. Overall, BRC2.0 marks a pivotal step in Bitcoin’s programmable asset capabilities, fueling deeper DeFi adoption and new trading opportunities.

Bullish

BRC2.0’s integration of the Ethereum Virtual Machine into Bitcoin significantly expands on-chain programmability. By enabling Turing-complete smart contracts, the upgrade opens new DeFi and NFT markets, driving fresh liquidity, trading volume and developer activity. Wrapped BTC tokens and stablecoin support will create additional trading pairs and arbitrage opportunities. While off-chain sequencer risks and MEV exposure pose short-term uncertainties, ongoing sequencer-based AMM designs aim to mitigate these issues. Overall, the enhanced utility and deeper DeFi adoption on Bitcoin should support positive price momentum over both the near and long term.