With the growing interest in Bitcoin DeFi, stack activation accounts have reached a peak
The leading Bitcoin Layer-2 (L2) network stack has reached an all-time high in active users, driven by growing interest in Bitcoin-native decentralized finance (DeFi).
The stack reached a peak of 122,497 active accounts in April. Active accounts are addresses that have made at least one transaction, according to a post by Bitcoin (BTC) data provider Signal 21 on May 2.
The record count suggests growing interest in Bitcoin DeFi, or BTCFi, and comes more than a week after the 2024 Bitcoin halving and a new protocol for issuing funnel tokens on the Bitcoin network.
Bitcoin Runes and Ordinals could drive more activity to Bitcoin L2 networks as the increase in Bitcoin network fees cost less transactions, said Andre Serrano, product and partnership manager at Stax.
Serrano told Cointelegraph in an interview:
“There will be a lot of property supply in this case [Bitcoin] L1, which includes transaction fees […] This costs a lot of users and activities […] Finally, it will be important to push this activity to L2s.
The median bitcoin transaction fee fell to $1.72 on May 1, halving Bitcoin's peak of more than $92 on April 20, according to CryptoQuant.
Related: ‘Real Opportunity' for Bitcoin Runes Comes After Initial Investor Enthusiasm
Bitcoin L2s are critical to the growth of Bitcoin DeFi.
Bitcoin L2s like Stax are an important part of BTCFi, enabling lower transaction costs and more use cases for the world's first blockchain network. For example, L2 network stacks enable the creation of smart contracts on the Bitcoin network.
Stacks' Serrano explained that Ethereum, which already comes with inherent smart contract capabilities, are more important to Bitcoin L2s. He added that L2s are necessary to scale the Bitcoin network beyond the current transaction limit.
BTCFi has gained widespread interest in the crypto space. With current growth, BTCFi could grow to match the innovation on Ethereum-native DeFi, according to Merlinswap co-founder Nash Lee.
Related: Runes Are Offering a Significant Lifeline to Bitcoin Miners – TeraWulf COO
