The total net inflow of Bitcoin spot ETF was $818 million the day before yesterday, and it has been a net inflow for 5 consecutive days. According to the current upward trend of Bitcoin, $100,000 by the end of the year is worth looking forward to. It can be foreseen that this virtuous cycle of improved liquidity and rising Bitcoin prices will make the market begin to pay more attention to the Bitcoin ecosystem.
1. Rune and BTC Layer2 are both sectors that have received a lot of attention in the first half of the year. Are there still opportunities?
First of all, runes. Although there have been signs of recovery since last month, the overall situation is still complicated. It should be noted that the recovery of the rune market is mainly driven by the soaring prices of top runes, and the market will have obvious FOMO sentiment, but this rise may not be stable. Short-term price fluctuations may cause small runes or emerging runes to face the risk of a large decline. If you don't want to FOMO and don't have much time and energy, you can buy top runes in a small position to reduce risks, and pay attention to stop profit and stop loss.
The second is Bitcoin Layer 2. Currently, there are more than 80 Layer 2 projects focusing on Bitcoin expansion, and sidechains and Rollups have become mainstream. These projects adopt different technical routes, aiming to improve transaction efficiency and reduce costs. Among them, top projects have received millions to tens of millions of dollars in financing, showing strong market vitality. For example, @Stacks aims to solve the scalability problem of the Bitcoin network, enabling it to support more transactions and complex smart contracts.
As the largest Layer 2 solution for Bitcoin, @Stacks recently successfully completed the Nakamoto upgrade. This major upgrade not only increased the block processing speed, but also ensured 100% of Bitcoin's computing power to provide security.
2. Bitcoin’s largest L2 Stacks saw a 197% month-on-month increase in new user accounts in October
The Nakamoto upgrade is the biggest upgrade to Stacks in the past two years and includes several key improvements:
- Faster block processing: After the upgrade, transaction confirmation time is reduced from 10 minutes to about 10 seconds.
- Enhanced security: By leveraging the computing power of the Bitcoin network, the security and immutability of transactions are ensured.
Currently, the team is working to achieve a 500% performance improvement within the next month.
3. The upcoming launch of sBTC v1 will unlock billions of dollars of capital for Bitcoin DeFi
sBTC will be launched in the next 4-6 weeks. It is a decentralized, programmable 1:1 Bitcoin-backed asset that can deploy and transfer BTC between Bitcoin and Stacks (L2). Most importantly, smart contracts can interact with sBTC, opening the door to any application in DeFi and other ecosystems. At the same time, sBTC is the most decentralized Bitcoin Layer 2 asset, with more than 20 top institutions as signers, including Bitgo and Blockdaemon, providing the highest level of security and flexibility.
The Stacks team has allocated $20 million to support core development and appointed the CTO of Algorand Labs as the CTO of the Bitcoin L2 Labs entity. These efforts will accelerate the upgrade of Stacks software and the launch of sBTC, bringing users a faster and more secure transaction experience.
In fact, the Bitcoin ecosystem also includes more infrastructure, such as Restaking, cross-chain bridges, wallets, oracles, various asset protocols and DeFi projects, etc. The scope is too wide to list. Our discussion is only intended to serve as a starting point, and to glimpse the current status of Bitcoin ecosystem development from some cases as BTC prices rise. Next time, we will share some high-quality project cases with you.
