- Binance supported the Stacks L2 upgrade for the Bitcoin network.
- Bitcoin TVL saw positive growth, while Stacks TVL continued its downtrend and STX token remained bearish.
Although bitcoin [BTC] was not initially designed to function as a smart contract platform like Ethereum [ETH]the advent of layer-two solutions such as Stacks [STX] made it feasible.
Excitingly, crypto exchange Binance revealed its support for the upcoming Stacks network upgrade and hardfork. The upgrade is scheduled at the blockchain high of 787,651.
Read Stacks [STX] Price Forecast 2023-24
Bitcoin L2 Network Gets Upgrade Support
Binance made one announcement on April 29 regarding his support for Stacks’ network upgrade and hardfork. The good news for STX traders was that the upgrade would not impact token trading nor create new tokens.
However, it is worth noting that the Bitcoin L2 upgrade would occur at a specific block height of 787,651. However, withdrawals would be suspended at the block height of 787,645. At the time of writing, the blockchain’s height was 787,621, according to blockchain. com.
The Stacks network operates with a unique design philosophy that prioritizes true decentralization. This innovative solution enables smart contracts and dApps to run on the Bitcoin network without intermediaries, leading to a more streamlined and secure process.
Also, the approach, known as “layer-2” scaling, allows developers to build additional features and functionality on top of the existing Bitcoin infrastructure without requiring changes to the underlying protocol.
State of Bitcoin and Stack’s TVL
The emergence of solutions such as Stacks enabling smart contract functionality on the Bitcoin network is driving an increase in the network’s Total Value Locked (TVL).
At the time of writing, data from DefiLlama showed that Bitcoin’s TVL reached $201.44 million, with an upward trend indicating positive growth.
Source: DefiLlama
However, a closer look at Stacks’ TVL revealed a less positive trend than Bitcoin. At the time of writing, Stacks’ TVL was $21.57 million, with a noticeable downward trend.
Source: DefiLlama
Realistic or not, here is the market cap of STX in BTC terms
STX on a daily time frame
On the daily timeframe chart, Stacks price movement was lackluster. Despite this, STX was trading at around $0.72 at the time of writing, yielding a gain of almost 1%.
This gain reflected a two-day uptrend in the token’s price. However, it is worth noting that STX remained below the neutral line of the Relative Strength Index, indicating a continued bearish trend.
Source: TradingView