Bitcoin ‘s Layer 2 Coins On Fire
Bitcoin’s layer 2 tokens, have reached double digits as BTC hits its highest level in 25 months. Tokens for Bitcoin-focused smart contract and scaling platforms like Stacks and RIF are benefiting from the recent Bitcoin rally. These Bitcoin scaling tokens and BRC-20 tokens performed better than the broader crypto markets on Monday and even managed to reach their highest level in 25 months. Bitcoin Layer 2 network tokens like Stacks (STX) and RSK Infrastructure Framework (RIF) have made double-digit gains in the midst of the general crypto rally.
Stacks, known as a Bitcoin-focused smart contract platform, rose to $3.21, a 30% increase from its intraday low of $2.44 on February 27, according to CoinGecko. It has doubled its price in the last 30 days. This big move is near its all-time high of $3.39 in December 2021, indicating a 9% increase. According to social intelligence company Lunar Crush, Stacks experienced significant increases in social activity last year. With the increasing interest in Bitcoin layer-2 projects, there was a significant increase in activity and social metrics, with social interactions increasing by nearly 16,000%.
Which asset has seen the largest increase in social activity over the last year? One of the strongest has been $STX. With excitement about #Bitcoin Layer 2s increasing, so has social activity for @Stacks.
Social interactions are up nearly 16,000% with activity accelerating as… pic.twitter.com/xPSJ8JyTCI
— LunarCrush (@LunarCrush) February 27, 2024
The native token of the RSK Infrastructure, RIF, rose to $0.242, a 25% increase from its intraday low of $0.193, before experiencing a slight pullback. The Rootstock Infrastructure Framework is a service layer built on top of the Rootstock blockchain, which brings smart contract capabilities to Bitcoin. The platform also allows the deployment of decentralized applications, or DApps, without compromising Bitcoin’s core principles.
According to DefiLlama, Rootstock holds just over half of the total value locked in all Bitcoin sidechains, which amounts to approximately $161 million. Stacks has a total value locked (TVL) of $138 million, or about 43%. Other Bitcoin-related scaling and smart contract tokens, including MAP, the native token for Bitcoin Layer2 peer-to-peer omni-chain MAP Protocol, also performed well. According to CoinGecko, MAP reached $0.035, a 16% increase in early trading on February 27.
BRC-20 tokens also appear to be pumping. Tokens including MUBI, TRAC, INSC, and others such as PEPE and MEME, increased by at least 20% during the day. Meanwhile, Bitcoin reached its highest price since December 2021 and hit $56,700 in early trading on February 27. The asset has since slightly retreated, trading at $55,684 at the time of writing.
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