Stacks achieves highest number of active users

The increase in active accounts indicates a growing attraction to Bitcoin decentralized finance, also known as BTCFi, as Bitcoin users seek alternative avenues for financial activities

The leading Bitcoin layer-2 (L2) network, Stacks, has achieved a remarkable milestone with its highest number of active users to date. During April, Stacks logged a new all-time peak of 122,497 active accounts, suggesting a jump in interest in Bitcoin-native decentralized finance (DeFi). This comes shortly after this year’s Bitcoin halving and the launch of Runes, a novel protocol for issuing fungible tokens on the Bitcoin network.

The increase in active accounts indicates a growing attraction to Bitcoin decentralized finance, also known as BTCFi, as Bitcoin users seek alternative avenues for financial activities.

Andre Serrano, the product and partnership manager at Stacks, believes that the rising fees on the Bitcoin network will gradually push smaller transactions towards Bitcoin Layer-2 networks. Serrano emphasised the importance of L2s for Bitcoin, stating that the asset issuance on Bitcoin Layer-1 (L1) would push up transaction fees, making L2s a necessity to accommodate more users and activity.

Bitcoin L2 networks such as Stacks play a vital role in the development of Bitcoin DeFi. They facilitate lower transaction costs and offer additional use cases for the original blockchain network. Stacks, specifically, enables the creation of smart contracts on the Bitcoin network, expanding the possibilities for Bitcoin’s functionality. L2s are seen as a means to scale the Bitcoin network beyond its current transaction limitations.

The growing interest in BTCFi has garnered widespread enthusiasm across the crypto currency space. With the current pace of development, BTCFi has the potential to match the innovation seen in Ethereum-native DeFi, as per Nash Lee, co-founder of MerlinSwap.