Binance supports Stacks network upgrade: Bitcoin L2 scaling takes a step forward

• Binance supported Stacks’ L2 improve for the Bitcoin community.
• Bitcoin TVL noticed constructive development, whereas Stacks’ TVL was on a downtrend, and the STX token remained bearish.

Though Bitcoin [BTC] wasn’t initially designed to perform as a sensible contract platform like Ethereum [ETH], the arrival of layer-two options akin to Stacks [STX] made it achievable.

Excitingly, crypto alternate Binance disclosed its assist for the upcoming Stacks community improve and hardfork. The improve is scheduled to happen on the blockchain peak of 787,651.

Learn Stacks [STX] Value Prediction 2023-24

Bitcoin L2 community will get improve assist

Binance made an announcement on 29 April relating to its assist for Stacks’ community improve and hardfork. The excellent news for STX merchants was that the improve wouldn’t impression token buying and selling, nor wouldn’t it create new tokens.

Nevertheless, it’s value noting that the Bitcoin L2 improve was set to happen at a selected block peak of 787,651. Withdrawals had been, nonetheless, going to be suspended on the block peak of 787,645. On the time of writing, the blockchain peak was 787,621, as per blockchain.com.

The Stacks community operates with a singular design philosophy that prioritizes true decentralization. This modern resolution allows good contracts and dApps to be executed on the Bitcoin community with out intermediaries, resulting in a extra streamlined and safe course of.

Additionally, the method, often known as “layer-2” scaling, allows builders to construct extra options and performance on prime of the prevailing Bitcoin infrastructure with out requiring modifications to the underlying protocol. 

State of Bitcoin and Stack’s TVL

The rise of options like Stacks that allow good contract performance on the Bitcoin community is driving a rise within the Complete Worth Locked (TVL) of the community.

As of the time of writing, DefiLlama information confirmed that Bitcoin’s TVL reached $201.44 million, with an upward pattern that signifies constructive development. 

Supply: DefiLlama

Nevertheless, a more in-depth take a look at the TVL of Stacks revealed a much less constructive pattern than Bitcoin. On the time of writing, the TVL of Stacks was $21.57 million, with a noticeable downtrend. 

Supply: DefiLlama

Real looking or not, right here’s STX’s market cap in BTC phrases

STX on a day by day timeframe

On the day by day timeframe chart, the value motion of Stacks was lackluster. Regardless of this, STX was buying and selling at round $0.72 at press time, exhibiting a achieve of just about 1%.

This achieve mirrored a two-day upward pattern within the token’s worth. Nevertheless, it’s value noting that STX remained beneath the impartial line of the Relative Power Index, indicating a continued bearish pattern. 

Supply: TradingView