Bitcoin Layer-2 Stack, Elastos, SatoshiVM Skyrocket Post Half

Following the last halving on April 20, Layer-2 solutions such as Stacks (STX), Elastos (ELA) and SatoshiVM (SAVM) outperformed Bitcoin itself.

This increase reflects the importance and potential impact of Layer-2 solutions on the broader crypto market.

Stacks, Elastos, SatoshiVM grow after Bitcoin split.

Stacks, the popular Layer-2 network, whose token STX rose more than 21.36% to $2.95. This impressive increase occurred after the halving, which reduced Bitcoin's coin release per block from 6.25 to 3.125 BTC. In contrast, Bitcoin posted a modest gain of 4.75%, reaching $66,820.

While STX led the way as one of the top performing cryptocurrencies in the top 25, other Layer-2 tokens such as Elastos' ELA and SatoshiVM's SAVM also gained 16.14% and 18.64% respectively.

Bitcoin Layer-2 projects are essential for improving elasticity and transaction speed on the blockchain. Unlike their Ethereum counterparts, which focus on smart contract optimization, Bitcoin's Layer-2 solutions aim to add programmability and efficiency to the network, which lacks a native virtual machine similar to Ethereum.

The wave in these signals coincided with an increase in Bitcoin transaction fees, which rose to 0.0020 BTC post-halving, marking a new high since the beginning of 2018. Token trading directly on the Bitcoin blockchain.

“The fourth halving of Bitcoin coincided with the level of the Runes token, which led to an unprecedented increase in Bitcoin's total transaction fees, which reached $80.77 million on April 20,” said a TEA analyst.

In fact, the introduction of Runes has pushed up transaction costs as the number of runes hit 3,700, leading to job and business frustrations.

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Investors are now closely monitoring these Layer-2 networks, recognizing their potential to change the landscape and expansion of Bitcoin trading.