Since the Bitcoin blockchain's much-anticipated mining reward halving, top Bitcoin Tier 2 coins have surged 5% to 20%, outpacing Bitcoin (BTC), according to data from CoinGecko.
Bitcoin Layer 2 Projects, STX, ELA, SAVM Outperform BTC After Halving
Tokens associated with Bitcoin Layer 2 solutions have significantly outperformed Bitcoin since the halving, which reduced coin emission per block from 6.25 BTC to 3,125 BTC.
STX, the native token of the leading Bitcoin Layer 2 network Stacks, rose nearly 20% to $2.95.
Meanwhile, Bitcoin reached $66,470 with a modest gain of just over 4.7%. According to Velo Data, STX stands out as one of the best performers among the top 25 cryptocurrencies in the last 24 hours.
In addition to STX, other Layer 2 coins such as Elastos' ELA token and SatoshiVM's SAVM have also witnessed increases of 11% and 5% respectively since the halving event.
Bitcoin Layer 2 solutions aim to address scalability and transaction speed limitations in the Bitcoin blockchain.
These projects are built on top of the Bitcoin blockchain and increase scalability by processing transactions outside the main chain.
While Ethereum Layer 2 solutions primarily focus on scaling the Ethereum smart contract blockchain, Bitcoin Layer 2 projects aim to scale the main blockchain and offer programmability features, which lack an Ethereum-like virtual machine.
*This is not investment advice.