Bitcoin layer-2 (L2) network Stacks has achieved a new milestone in active users, driven by a rising interest in Bitcoin-based decentralized finance (DeFi).
During the month of April, Stacks reached an all-time high of 122,497 active accounts. These accounts are addresses that have conducted at least one transaction, according to a post by Bitcoin data provider Signal 21 on May 2.
This record-breaking number of accounts indicates a growing interest in Bitcoin DeFi, also known as BTCFi. It comes shortly 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 increase activity on Bitcoin L2 networks. This is due to the rising network fees on the Bitcoin network, which may deter smaller transactions, as explained by Andre Serrano, the product and partnership manager at Stacks.
According to Serrano, the 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, according to data from CryptoQuant.
Bitcoin L2 networks, such as Stacks, play a crucial role in the development of Bitcoin DeFi. They enable lower transaction costs and offer additional 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 emphasized that L2 networks are even more important for Bitcoin compared to Ethereum, which already has built-in smart contract capabilities. He stated that L2 networks are necessary to scale the Bitcoin network beyond its current transaction limitations.
The growth of BTCFi has garnered widespread enthusiasm in the crypto industry. With further development, BTCFi has the potential to match the level of innovation seen in Ethereum-native DeFi, according to Nash Lee, the co-founder of MerlinSwap.
The introduction of Runes offers significant support for Bitcoin miners, according to the Chief Operating Officer of TeraWulf.