Record High Stacks Active Accounts Driven by Bitcoin DeFi Interest

Leading Bitcoin layer-2 (L2) network Stacks has experienced a surge in active users, indicating a growing interest in Bitcoin-native decentralized finance (DeFi). In April, Stacks reached a record high of 122,497 active accounts, which are addresses that have performed at least one transaction. This increase in user activity comes shortly after the 2024 Bitcoin halving and the launch of Runes, a new protocol that allows for the issuance of fungible tokens on the Bitcoin network.

According to Andre Serrano, the product and partnership manager at Stacks, the introduction of Bitcoin Runes and Ordinals could drive even more activity to Bitcoin L2 networks. As Bitcoin network fees continue to rise, smaller transactions are being priced out, making L2 networks more attractive for users. Serrano believes that as more asset issuance occurs on the Bitcoin network, transaction fees will increase, pushing more users towards L2s.

The median transaction fee for Bitcoin fell to $1.72 on May 1, down from its all-time high of over $92 on April 20, thanks to the Bitcoin halving. L2 networks like Stacks are crucial for the development of Bitcoin DeFi, as they provide lower transaction costs and expand the use cases of the blockchain network. Stacks allows for the creation of smart contracts on the Bitcoin network, which is an important feature as L2s become essential for scaling Bitcoin beyond its current limitations.

The concept of Bitcoin-native DeFi has gained significant enthusiasm within the crypto community. With the recent surge in user activity on Bitcoin L2 networks, BTCFi has the potential to rival the innovation seen in Ethereum-native DeFi. According to Nash Lee, the co-founder of MerlinSwap, this development could lead to the growth of BTCFi and bring it on par with Ethereum DeFi in terms of innovation.