Bitcoin Layer 2 Altcoins Surge as BTC Price Reaches its Highest Point in 25 Months
Bitcoin’s recent surge in price has also led to significant increases in the value of BRC-20 tokens like STX and RIF. STX saw a 30% surge, reaching near its all-time high, which indicates a renewed interest from investors. Other Bitcoin-related tokens like MAP, MUBI, and MEME also experienced price gains.
Bitcoin’s Layer 2 (L2) tokens, which were previously underrated, are now in the spotlight. Tokens like MUBI, TRAC, INSC, PEPE, and MEME have witnessed substantial price surges that closely align with Bitcoin’s recent climb to $56,700 on February 27th.
BRC-20 Coins Take Center Stage
This week has highlighted the performance of Bitcoin scaling tokens and the remarkable performance of BRC-20 coins, which have outpaced the broader crypto market. Even Bitcoin itself reached a 25-month high of $56,443.
The Bitcoin rally has paved the way for smart contract and scaling platform tokens, as seen with Stacks (STX) and RSK Infrastructure Framework (RIF), which showcase the market’s confidence in Bitcoin’s scalability and smart contract capabilities.
Stacks 30% Surge
On February 27th, Stacks (STX) gained significant attention with a remarkable surge of 30%. Its value went from an intraday low of $2.44 to a peak of $3.21 during early trading, effectively doubling its value in just 30 days. This indicates a clear bullish trend.
Stacks’ rising value brought its token, STX, within striking distance of its all-time high of $3.11, which is just 9% below its peak in December 2021. This resurgence signals renewed investor confidence in Stacks and its growth potential.
Stacks has not only seen a thriving value but also a substantial increase in social activity over the past year. Interactions have surged by nearly 16,000%, driven by growing excitement surrounding Bitcoin Layer-2 solutions, with Stacks emerging as a prominent player.
RIF, MAP, MUBI, MEME Join the Party
Another token associated with Bitcoin’s ecosystem, the native token of the RSK Infrastructure Framework (RIF), also experienced a notable surge of 25% on the same day, climbing from $0.193 to $0.242 before a slight dip. The Rootstock Infrastructure Framework adds smart contract abilities to Bitcoin, enabling DApps without altering Bitcoin’s core.
According to the DefiLlama report, RIF holds over half of all Bitcoin sidechains’ Total Value Locked (TVL), which amounts to around $161 million, while Stacks has approximately $138 million, accounting for about 43%.
Positive Sentiments
Moving forward, other Bitcoin-related scaling tokens like MAP and BRC-20 tokens such as MUBI and MEME also saw substantial increases in value on the same day. This indicates a broader positive sentiment towards projects within Bitcoin’s ecosystem.
Overall, the surge in Bitcoin’s Layer 2 tokens highlights the importance of scalability solutions in unlocking Bitcoin’s full potential as a digital currency.