Bitcoin layer-2 (L2) network Stacks has achieved a new milestone in terms of active users, driven by the increasing interest in Bitcoin-based decentralized finance (DeFi).
In April, Stacks reached a record high of 122,497 active accounts. These accounts represent addresses that have conducted at least one transaction, as reported by Bitcoin data provider Signal 21 on May 2.
This surge in active accounts indicates a growing fascination with Bitcoin DeFi, also known as BTCFi. It comes shortly after the 2024 Bitcoin halving and the launch of Runes, a new protocol that allows for the issuance of fungible tokens on the Bitcoin network.
Bitcoin Runes and Ordinals have the potential to stimulate more activity on Bitcoin L2 networks. This is because the rising fees on the Bitcoin network may discourage smaller transactions. Andre Serrano, the product and partnership manager at Stacks, believes that these developments will drive users to L2 networks.
According to Serrano, the median transaction fees for Bitcoin fell to $1.72 on May 1, after reaching an all-time high of over $92 on April 20 due to the Bitcoin halving, as reported by CryptoQuant.
Bitcoin L2 networks, such as Stacks, play a crucial role in the growth of Bitcoin DeFi. They offer lower transaction costs and open up new possibilities for the world’s first blockchain network. For example, Stacks enables the creation of smart contracts on the Bitcoin network.
Serrano emphasized that L2 networks are even more important for Bitcoin compared to Ethereum. While Ethereum already has built-in smart contract capabilities, Bitcoin needs L2 networks to overcome its current transaction limitations and scale.
Bitcoin-based DeFi has gained significant enthusiasm within the crypto community. With ongoing developments, BTCFi has the potential to match the level of innovation seen in Ethereum-native DeFi, according to Nash Lee, co-founder of MerlinSwap.
The introduction of Runes offers a lifeline for Bitcoin miners, as stated by TeraWulf COO.