Binance supports Stacks network upgrade: Bitcoin L2 scaling takes a step forward
- Binance supported Stacks’ L2 upgrade for the Bitcoin network.
- Bitcoin TVL saw positive growth, while Stacks’ TVL was on a downtrend, and the STX token remained bearish.
Although Bitcoin [BTC] wasn’t initially designed to function as a smart contract platform like Ethereum [ETH], the advent of layer-two solutions such as Stacks [STX] made it achievable.
Excitingly, crypto exchange Binance disclosed its support for the upcoming Stacks network upgrade and hardfork. The upgrade is scheduled to occur at the blockchain height of 787,651.
Read Stacks [STX] Price Prediction 2023-24
Bitcoin L2 network gets upgrade support
Binance made an announcement on 29 April regarding its support for Stacks’ network upgrade and hardfork. The good news for STX traders was that the upgrade wouldn’t impact token trading, nor would it create new tokens.
However, it’s worth noting that the Bitcoin L2 upgrade was set to occur at a specific block height of 787,651. Withdrawals were, however, going to be suspended at the block height of 787,645. At the time of writing, the blockchain height was 787,621, as per blockchain.com.
The Stacks network operates with a unique design philosophy that prioritizes true decentralization. This innovative solution enables smart contracts and dApps to be executed on the Bitcoin network without intermediaries, leading to a more streamlined and secure process.
Also, the approach, known as “layer-2” scaling, enables developers to build additional features and functionality on top of the existing Bitcoin infrastructure without requiring changes to the underlying protocol.
State of Bitcoin and Stack’s TVL
The rise of solutions like Stacks that enable smart contract functionality on the Bitcoin network is driving an increase in the Total Value Locked (TVL) of the network.
As of the time of writing, DefiLlama data showed that Bitcoin’s TVL reached $201.44 million, with an upward trend that indicates positive growth.
However, a closer look at the TVL of Stacks revealed a less positive trend than Bitcoin. At the time of writing, the TVL of Stacks was $21.57 million, with a noticeable downtrend.
Realistic or not, here’s STX’s market cap in BTC terms
STX on a daily timeframe
On the daily timeframe chart, the price movement of Stacks was lackluster. Despite this, STX was trading at around $0.72 at press time, showing a gain of almost 1%.
This gain reflected a two-day upward trend in the token’s price. However, it’s worth noting that STX remained below the neutral line of the Relative Strength Index, indicating a continued bearish trend.