Zest proposes a Bitcoin-backed loan system allowing BTC to remain on its own chain. According to Spark’s research, only 91,332 BTC, representing approximately 0.46% of the circulating supply, was found on Bitcoin layer-2 networks in May 2026. Adding all wrapped tokens and Babylon staking raises this proportion to barely 0.8%. These figures reveal that the vast majority of Bitcoin remains inactive, with holders hesitant to move their assets. Zest’s solution aims to unlock this dormant liquidity while keeping Bitcoin on its native network.
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