- Layer-2 protocols have outperformed BTC since the completion of the latest Bitcoin halving.
- Bitcoin completed its fourth halving late on Friday, April 19, 2024.
- STX and ELA gained 25% and 21% respectively, against BTC’s 5% 72 hours after Bitcoin halving.
Barely three days into the new Bitcoin dispensation, the flagship crypto blockchain’s Layer-2 solutions are leading the line. According to available data, tokens associated with Bitcoin’s Layer-2 protocols have outperformed BTC since the completion of the latest Bitcoin halving.
Bitcoin completed its fourth halving late on Friday, April 19, 2024, and the crypto market has initiated a gradual recovery from the recent pullback. Tokens on the Bitcoin network are among those registering notable upside movement, with Stack’s STX gaining 25% since the halving was completed, according to data from TradingView .
The Bitcoin Layer-2 solution picked up from a $2.3863 low early Saturday morning, reaching $3 as of Monday morning. Meanwhile, the parent blockchain’s cryptocurrency, BTC, rose from $63,136 to $66,503 during the same period, marking a 5% rally.
Apart from STX, ELA, the native crypto of Elastos, another Bitcoin Layer-2 blockchain solution, surged impressively following the halving event. In about 72 hours, ELA rose from $3.173 to $3.823, marking a 21% rally, over four times more than Bitcoin’s gains.
STX and ELA represent the new generation of cryptocurrencies gaining significant adoption and enhancing the crypto ecosystem. They address specific limitations on the parent blockchains while exploring the fundamental characteristics of the parent chain.
For instance, Bitcoin Layer-2 solutions address scalability and transaction speed limitation issues on the Bitcoin blockchain. Although they exist on top of the Bitcoin blockchain, they bring scalability by processing transactions off the main chain while relying on the security of the parent chain.
Observedly, the impressive rally by Bitcoin Layer-2 coins coincided with a spike in transaction fees on the Bitcoin network. On-chain data showed that the mean transaction fee soared to about 0.002 BTC after the Bitcoin halving.
Users linked the spike in fees to the debut of Runes, a novel Layer-2 solution on Bitcoin. Runes’ launch saw speculators rushing to mint tokens and trade memecoins, leading to increased transactions and hiking fees.
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