A new report from the research team at Binance has presented a huge opportunity in the market for the leading cryptocurrency, Bitcoin.
Developers around the world are becoming increasingly interested in the Bitcoin blockchain, thanks to its proven security and network effects that are attracting more and more people to the cryptocurrency.
However, the difference between money invested in second layer (L2) projects of Bitcoin and Ethereum is evident. The top two cryptoassets have chosen to scale their blockchains using complementary methods, commonly known as L2.
The 166X Growth Opportunity in the Bitcoin Ecosystem
While designs and definitions may differ, Bitcoin’s L2 is still far from reaching the cryptocurrency’s full market cap compared to Ethereum.
While ETH has more than 10% of the marketcap in TVL across several L2 projects, Bitcoin only accounts for 0.06%. This means that this ecosystem has the potential to grow about 166 timesputting ETH in perspective.
“This seems to suggest that Bitcoin L2s are still in their early stages.,” according to the report.
Including, one of the assets that grew the most in the last 200 days can be considered a BTC L2. Stacks (STX) is up 130.5% while bitcoin is up just 38.81%.
As we mentioned in the text: “Bitcoin can drop the price of Ethereum and other altcoins with this new technology”, the scalability solutions developed for Bitcoin are generally more complex, but cover a wide range of uses.
NFTs, smart contracts, data transfer protocol, messages and many others have only recently started their development.
Also Read: Space Satellites Bring Lightning Sync to Bitcoin: A Giant Leap for Cryptocurrency!
For Binance, the BTC ecosystem is flourishing, with companies like Yuga Labs, DeGods and MagicEden exploring new functionality in the cryptocurrency’s NFT market. Meanwhile, Blockstream, Rollkit, RSK and others are scaling new solutions to facilitate differentiated applications for crypto-first enthusiasts.
