Post-halving, Bitcoin L2 tokens surpass BTC in growth.
After the Bitcoin halving event, three BTC layer 2 protocols have surpassed the leading cryptocurrency token in terms of performance.
According to CoinGecko data, Bitcoin (BTC) was trading at over $65,000 and had experienced a 2.9% increase in the last 24 hours. The short-term price movement following the halving is not uncommon compared to previous cycles.
Historical data indicates that volatility and price fluctuations precede the quadrennial events, followed by a significant surge in Bitcoin’s value in the medium to long term. However, these increases have rarely been linear.
While Bitcoin saw modest gains after its halving, protocols built around major cryptocurrencies registered higher increases in the past 24 hours and week. Among the five BTC layer 2 solutions categorized by CoinGecko, three tokens stood out, with a combined value of over $4 billion.
SatoshiVM (SAVM) is a BTC zero-knowledge rollup protocol that claims to be compatible with the Ethereum Virtual Machine (EVM). It utilizes native BTC as gas fees and enables developers to create assets, decentralized applications (dapps), and solutions connected to Bitcoin’s ecosystem. SAVM saw a 12% surge in the past day and provided a return of over 17.9% to holders in the last week.
Elastos (ELA) holders experienced a 5.5% increase in 24 hours and a 3.6% increase in the past week. The protocol aims to enhance BTC efficiency and scalability through its layer 2 solution called BeL2, which is built using SmartWeb technology to facilitate smart contracts on Bitcoin.
Stacks (STX) followed Elastos closely with a daily growth rate of 5.4%, but outperformed ELA with a 10.6% increase over the week. The Stacks team states that their protocol supports dapp development and on-chain settlement on Bitcoin. The Stacks layer unlocks approximately $500 billion in BTC capital through its direct settlement mechanism.
In summary, these BTC layer 2 tokens have shown impressive performance following the halving event, outpacing Bitcoin itself in terms of gains.
