In a recent report, Binance emphasized the need for robust scaling solutions for Bitcoin, given the surge in new users and use cases. The launch of the Ordinals protocol by Casey Rodarmor in December 2022, which triggered the Bitcoin NFT hype cycle in 2023, and the subsequent creation of the Bitcoin fungible token standard, BRC-20, have significantly increased the demand for Bitcoin blockspace.

These developments have attracted a new wave of users, traders, and developers, leading to a rise in Bitcoin project funding and development. However, they have also resulted in a more congested mempool and higher transaction fees. Between 2022 and 2023, the average Bitcoin transaction fee rose 175% from $1.5 to $4.2, and in 2024, it has further increased to $9.

Binance insists that if Bitcoin is to achieve true global mass adoption, several scalability solutions are necessary to move some transactions from layer-1 to layer-2 networks. Existing Bitcoin scaling solutions include the Lightning network, RGB, Stacks, BounceBit, and Merlin. Despite the challenges, the crypto community remains optimistic about Bitcoin's long-term potential and continues to work on enhancing its adoption.