Layer-2 Bitcoin Tokens Soar, Outperforming Market Amid Cryptocurrency Rally
Summary:
Bitcoin layer-2 network tokens, such as Stacks (STX) and RSK Infrastructure Framework (RIF), made substantial gains, outperforming the overall crypto market. Stacks doubled its price over the past 30 days, moving closer to its December 2021 all-time high. RIF also saw a 25% surge from its intraday low. Other Bitcoin scaling and smart contract tokens, and some BRC-20 tokens, made notable progress too. Despite Bitcoin reaching its highest price since December 2021, it was outshone by layer-2 tokens.
On Monday, tokens related to Bitcoin scaling and BRC-20 recorded remarkable increases, outshining the broad cryptocurrency markets and even Bitcoin itself, which is currently experiencing a 25-month high. Layer-2 network tokens for Bitcoin, such as Stacks (STX) and RSK Infrastructure Framework (RIF), posted significant pluses amidst a broader crypto surge. Stacks, a Bitcoin-centric smart contract platform, witnessed a 30% surge, rising from a daily low of $2.44 to peak at $3.21 during the initial trading hours on Feb. 27, effectively doubling its value over the preceding 30 days per CoinGecko. This substantial rally set the STX token 9% shy of its peak recorded in December 2021 at $3.39.
According to Lunar Crush, a Social Intelligence firm, Stacks has reported some of the most considerable upswings in social engagement over the past year. Social interactions for Stacks have leaped by nearly 16,000%, fuelled by the growing interest in Bitcoin layer-2.
The RSK Infrastructure Framework's native token, RIF, similarly appreciated, with a 25% increase from its daily low of $0.193 to reach $0.242, before experiencing a marginal pullback. The Rootstock Infrastructure Framework represents a service layer constructed atop the Rootstock blockchain, introducing smart contract functionalities to Bitcoin while ensuring the preservation of Bitcoin's key principles.
Currently, Rootstock hosts just above half of the total value secured on all Bitcoin sidechains, estimated to be around $161 million as per DefiLlama. Stacks holds $138 million TVL, approximately 43%.
Other tokens associated with Bitcoin scaling and smart contracts have also fared well, including MAP, the proprietary token for the BTC L2 omnichain peer-to-peer MAP Protocol. On Feb. 27, MAP appreciated by 16% to touch $0.035 in the early trading hours, according to CoinGecko.
BRC-20 tokens are also exhibiting momentum with tokens such as MUBI, TRAC, INSC, PEPE, and MEME all registering a minimum 20% surge on the day. Concurrently, Bitcoin attained its highest value since December 2021, hitting $56,700 in the early trading hours on Feb. 27, before modestly withdrawing to $55,684 at the time of writing.
Published At
2/27/2024 8:49:47 AM
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