Bitcoin's Layer-2 Networks Set to Revolutionize Cryptocurrency as a More Productive Asset
Summary:
Andre Serrano, Stacks' Product and Partnerships manager, anticipates layer-2 networks to significantly impact Bitcoin's progress, transforming it into a more productive asset. This comes in light of growing adoption of Bitcoin-native decentralized finance (BTCFi). Serrano predicts the Bitcoin layer-2 market to rival or potentially surpass Ethereum's market in the years ahead. The demand in BTCFi is evidenced by decentralized exchange MerlinSwap's initial offering, attracting $480 million worth of 6,599 Bitcoins from over 52,000 participants. Additionally, other market players like Nash Lee from MerlinSwap, also hold a positive outlook towards this growth in the Bitcoin-native DeFi space.
The decentralized finance platform for Bitcoin (BTC), or BTCFi, is making the cryptocurrency more dynamic, allowing it to generate monetary gains, says Andre Serrano from Stacks in a recent exclusive chat with Cointelegraph. Serrano, Stacks' product and partnerships manager, explained that there is a substantial opportunity for protocols and layer-2 networks to attain substantial progress with Bitcoin, a $1.2 trillion asset class with minimal on-chain activity. As a new development, BTCFi intends to offer Bitcoin the same functionality as traditional decentralized finance. Serrano suggests the Bitcoin layer-2 market is set to rival that of Ethereum's due to growing adoption and progress. He anticipates Bitcoin's layer-2 networks will likely equal and potentially outdo Ethereum's in the next few years. This comes just ahead of the Bitcoin halving, with Bitcoin trading above $63,500 after a 7.9% dip in a week, according to CoinMarketCap. The investor anticipation for BTCFi is highlighted by decentralized exchange MerlinSwap's initial offering on April 5, acquiring $480 million worth of 6,599 Bitcoins from over 52,000 participants. Bitcoin layer-2 networks, an integral part of BTCFi, can reduce transaction costs and increase Bitcoin's application. For example, Stacks' layer-2 network allows the creation of smart contracts on the Bitcoin network. Serrano argued that Bitcoin's layer-2 networks are more essential than Ethereum's, which already possesses an inherit capability for smart contracts. Serrano claimed that layer-2s are crucial for Bitcoin to scale beyond its current transaction constraints. To make Bitcoin a more profitable asset, he recommends establishing yield-generating capabilities and Bitcoin-focused lending protocols. Other market players also have a positive outlook towards Bitcoin-native DeFi, like Nash Lee from MerlinSwap, who believes BTCFi could rival Ethereum DeFi in terms of innovation with its current rate of adoption.
Published At
4/17/2024 12:09:21 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.