DeFi
Stacks Active Accounts Hit All-Time High Amid Growing Interest in Bitcoin DeFi – TradingView News
The leading layer 2 (L2) Bitcoin network, Stacks, has reached an all-time high in active users, driven by growing interest in Bitcoin’s native decentralized finance (DeFi).
Stacks reached a new all-time high of 122,497 active accounts in April. Active accounts are addresses that have made at least one transaction, according to a May 2 article from Bitcoin. BTCUSD Signal 21 data provider.
The record number of accounts suggests growing interest in Bitcoin DeFi, or BTCFi, and comes a week after Bitcoin’s 2024 halving and the launch of Runes, a new protocol for issuing fungible tokens on the Bitcoin network.
According to Andre Serrano, product and partnership manager at Stacks, Bitcoin runes and ordinals could generate more activity on Bitcoin L2 networks because increasing Bitcoin network fees will reduce the price of smaller transactions.
Serrano told Cointelegraph in an interview:
“There will be a lot of asset issuance on [Bitcoin] L1, which will increase transaction costs […] It costs a lot of users and activities […] Ultimately, pushing this activity further towards L2 will become a necessity.
Median Bitcoin transaction fees fell to $1.72 on May 1, down from their all-time high of over $92 reached on April 20, due to the Bitcoin halving, according to CryptoQuant.
Related: A “real opportunity” for Bitcoin Runes will come after the first wave of investor hype
Bitcoin L2s are essential to the development of Bitcoin DeFi
Bitcoin L2s like Stacks are an important part of BTCFi, providing lower transaction costs and additional use cases for the world’s leading blockchain network. For example, L2 Network Stacks enable the creation of smart contracts on the Bitcoin network.
Stacks’ Serrano explained that L2s for Bitcoin are more important than for Ethereum, which already has inherent smart contract capabilities. He added that L2s are necessary to scale the Bitcoin network beyond its current transaction limits. Andre Serrano interview with Cointelegraph. Source: Cointelegraph
BTCFi has generated widespread excitement in the crypto space. With current development, BTCFi could grow to match the innovation on Ethereum’s native DeFi, according to Nash Lee, co-founder of MerlinSwap.