Leading Bitcoin layer-2 (L2) network Stacks has achieved a new milestone in active users, driven by the increasing interest in Bitcoin-native decentralized finance (DeFi).
During April, Stacks recorded an all-time high of 122,497 active accounts. Active accounts refer to addresses that have conducted at least one transaction, as reported by Bitcoin data provider Signal 21 on May 2.
This surge in account numbers indicates a growing enthusiasm for Bitcoin DeFi, also known as BTCFi. It comes just over a week after the 2024 Bitcoin halving and the launch of Runes, a new protocol for issuing fungible tokens on the Bitcoin network.
Bitcoin Runes and Ordinals have the potential to attract more activity to Bitcoin L2 networks. This is because the rising fees on the Bitcoin network are making smaller transactions less viable, explained Andre Serrano, the product and partnership manager at Stacks.
Serrano stated in an interview with Cointelegraph:
“With increasing Bitcoin network fees, L2 networks such as Bitcoin Runes and Ordinals could drive more activity. They would provide lower transaction costs compared to the main Bitcoin network.”
According to CryptoQuant, median Bitcoin transaction fees dropped to $1.72 on May 1, down from the all-time high of over $92 reached on April 20, thanks to the Bitcoin halving.
Bitcoin L2 networks, like Stacks, play a crucial role in the development of Bitcoin DeFi. They enable lower transaction costs and expand the use cases for the world’s first blockchain network. For example, Stacks’ L2 network allows for the creation of smart contracts on the Bitcoin network.
Serrano explained that L2 networks are even more important for Bitcoin than for Ethereum, which already has built-in smart contract capabilities. He emphasized that L2 networks are vital for scaling the Bitcoin network beyond its current transaction limitations.
BTCFi has garnered significant enthusiasm in the crypto space. With the current progress, BTCFi has the potential to match the innovation seen in Ethereum-native DeFi, according to Nash Lee, co-founder of MerlinSwap.
Overall, the introduction of Runes offers a significant lifeline for Bitcoin miners, as highlighted by TeraWulf COO.