Revival of the Bitcoin Blockchain: Emerging Developments and Industry Highlights
Summary:
The Bitcoin blockchain is experiencing a resurgence among developers, driven by its integration with decentralized finance (DeFi) and prompting a need for layer-2 protocols to increase efficiency and reduce transaction costs. Crypto exchange Coinbase has adopted the Lightning Network for Bitcoin (BTC) transfers, following Binance's lead. Software firm Animoca Brands has partnered with the Opal Foundation to tread into the Bitcoin ecosystem. The recent launch of fungible tokens Runes on the Bitcoin blockchain has further heightened the excitement. This week, highlights in the crypto industry include Lightning Network's integration by Coinbase, Avalanche's partnership with Stripe, MicroStrategy's Q1 earnings, and BlackRock launching the world's largest tokenized treasury fund.
The Bitcoin blockchain is making a resurgence, as various initiatives aim to enhance the original blockchain that had been previously overshadowed by the Ethereum network. This surge in attention from developers can be attributed to strengthening ties between Bitcoin and decentralized finance (DeFi), sparking the need for layer-2 solutions to render the Bitcoin blockchain more efficient and decrease transaction fees amidst escalating on-chain activities. Coinbase, a well-known crypto exchange, has upgraded its Bitcoin services, integrating the Lightning Network for faster Bitcoin (BTC) transfers, almost a year after Binance made the same move. In parallel, software company Animoca Brands has teamed up with the Opal Foundation, emerging as a new Bitcoin ecosystem protocol, featuring in the Bitcoin industry.
The April 20 launch of Runes on the Bitcoin blockchain has added to the current excitement, enabling the establishment of fungible tokens on the platform. In under ten days, Rune transactions have yielded miners more than 1,200 BTC in transaction fees.
This week's Crypto Biz highlights Coinbase's incorporation of the Lightning Network, Avalanche's cooperation with Stripe, MicroStrategy's earnings results, and a tokenized fund rolled out by BlackRock. The Avalanche C-Chain network has integrated with the payment firm Stripe, offering Stripe's verified users the convenience of purchasing Avalanche's (AVAX) token and transferring it to their wallets, as mentioned by network developer Ava Labs.
MicroStrategy's Q1 loss amounted to $53.1 million, mainly due to a significant increase in impairment loss on digital assets. However, the firm kept acquiring Bitcoin holdings, currently owning 214,400 BTC valued at $13.5 billion.
The BlackRock USD Institutional Digital Liquidity Fund (BUIDL), with a market capitalization of $375 million, became the largest treasury fund tokenized on the blockchain, surpassing Franklin Templeton's counterpart. In one week, BUIDL attracted $70 million, including a substantial investment from Ondo Finance.
Coinbase has integrated the Lightning Network for Bitcoin transactions, offering quicker and cheaper transfers compared to Bitcoin blockchain transactions. Nevertheless, Coinbase alerted users on April 30 that Lightning transfers might take several hours or fail in some circumstances due to specific implementation or fee structure. Blockchain and crypto businesses' weekly rhythm, Crypto Biz, is delivered to subscribers' inboxes every Thursday.
Published At
5/4/2024 12:00:00 AM
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