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Bitcoin Layer-2 Stacks Initiates Major Nakamoto Upgrade

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The Stacks (STX) protocol has initiated the Nakamoto Upgrade, which introduces Bitcoin (BTC) finality to its network. Over the next 21 days, the ecosystem is set to experience a range of activities linked to this significant upgrade.

Stacks is one of the largest Bitcoin Layer-2 (L2) networks by market capitalization. Earlier this year, the STX community approved the Nakamoto upgrade, aiming to make the network faster and enhance block times.

Bitcoin L2 Stacks Initiates Nakamoto Upgrade

The Nakamoto Upgrade marks a new era of scalability for decentralized finance (DeFi) within the Bitcoin ecosystem and is one of the most significant changes to the Stacks network. Activated on Wednesday, this upgrade enhances transaction speeds and reduces settlement times.

Bitcoin’s standard settlement times previously ranged from 10 to 30 minutes or more. The Nakamoto Upgrade has slashed this to around five seconds—a 10X improvement that significantly boosts the Stacks network’s usability.

The upgrade received strong community support earlier this year and sets the stage for several key developments in the Stacks ecosystem. One of the major upcoming events is the introduction of sBTC, a decentralized asset backed 1:1 by Bitcoin.

Stacks is specifically designed to enable smart contracts and dApps to use Bitcoin as a secure base layer. By extending Bitcoin’s capabilities without altering it, Stacks unlocks billions in latent capital, allowing for a more dynamic and functional ecosystem.

Read more: A Beginner’s Guide to Layer-2 Scaling Solutions

The Nakamoto Upgrade comes as projects built atop the Stacks blockchain endured less-than-desirable speeds. These slow transaction times negatively impacted the user experience, making it challenging to support high-volume use cases and limiting developers from delivering complex DeFi products.

Despite the positive changes brought by the upgrade, which began on Wednesday, the total value locked (TVL) on the Stacks network has decreased by over $7 million, dropping from $98.10 million to $90.62 million. This decline in TVL suggests that the upgrade’s immediate impact on market confidence was mixed, even as the network undergoes notable improvements.

Stacks TVL, Source: DefiLlama
Stacks TVL. Source: DefiLlama

BeInCrypto data shows STX, the native token of the Stacks network, is trading for $1.59 at press time, down 8.5% since Thursday session openned.

Bitcoin L2s Could Initiate New Wave

Bitcoin L2 solutions are progressively gaining popularity, and have attracted significant investment. As BeInCrypto previously reported, VC funding towards Bitcoin L2s continues to grow, collectively raising an impressive $94.6 million in the second quarter of 2024.

This represents a substantial 174% increase quarter-over-quarter. Experts also revealed that at least 65 projects identified themselves as Bitcoin Layer-2.

“The crypto industry is catching on to the fact that much of what is done on alternative blockchains can be built on top of Bitcoin. Fortune 500 companies like MicroStrategy are tailoring their entire business towards Bitcoin’s Layer-2. Layer-2 faces no more regulations than other crypto platforms. The only challenges are technical, and the brightest minds are being pulled towards Bitcoin along with nation-states, etc,” Manuel Ferrari, Money On Chain Co-Founder, told BeInCrypto.

Read more: Beginner’s Tutorial to Start Using the Lightning Network

There is also speculation that L2s could spark a new bullish wave for Bitcoin, especially as the focus on scaling increases. This rising demand might lead to capital rotation, with overflow potentially moving into Layer-2 tokens like STX, Elastos (ELA), SatoshiVM (SVM), and BVM (BVM).

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Here’s How Binance And BlackRock Dominate The BTC Market

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The cryptocurrency market has witnessed a major evolution in recent years, with centralized exchanges and now recently spot Bitcoin exchange-traded funds (ETFs) playing a crucial role in driving adoption.

Among the participants helping to boost crypto adoption, the two key players leading this charge are Binance, the world’s largest cryptocurrency exchange, and BlackRock, with its spot Bitcoin ETF known as IBIT, according to the latest insight shared by a CryptoQuant analyst.

The analyst reveals their influence extends across trading volumes and institutional investment, making them central figures in the current Bitcoin market.

Market Share And Institutional Presence

The CryptoQuant analyst Crazzyblockk highlighted Binance and BlackRock’s pivotal roles in a post on the CryptoQuant QuickTake platform.

According to Crazzyblockk, the emergence of spot Bitcoin ETFs, which began operations in January 2024, has further solidified Bitcoin’s role in mainstream finance.

Centralized exchanges and spot Bitcoin ETFs metric.
Centralized exchanges and spot Bitcoin ETFs metric. | Source: CryptoQuant

Among these, Binance stands out due to its dominance in spot BTC trading volume and vast BTC reserves, holding 623,000 BTC out of the 3.15 million BTC collectively held across all centralized exchanges.

In comparison, BlackRock’s IBIT ETF has become a leader in the ETF space, holding 434,000 BTC of 1 million BTC across all spot ETFs.

Furthermore, the CryptoQuant analyst noted that in terms of market share, Binance accounts for approximately 19.7% of the BTC reserves held across all exchanges, establishing its stronghold as a central player in global Bitcoin trading.

Meanwhile, BlackRock’s spot BTC ETF, trading under the ticker IBIT, has also emerged as a key institutional player. Holding over 43.4% of the total Bitcoin reserves across all spot ETFs, BlackRock’s presence signifies the growing institutional demand for Bitcoin exposure through regulated financial products.

Bitcoin Market Performance

Along with Binance and BlackRock’s role in the Bitcoin market, the asset has installed hope and confidence back into investors following its recent price performance.

So far, BTC has surged by more than 20% in the past two weeks and over 10% in the past 7 days bringing its price above $75,000. Particularly, the asset trades for $75,700, at the time of writing up by 1.8% in the past day.

Bitcoin (BTC) price chart on TradingView
BTC price is moving upwards on the 1-hour chart. Source: BTC/USDT on TradingView.com

This current market price marks a mere 0.7% decrease from its all-time high of $76,243 created yesterday. Interestingly, despite the asset still seeing a continuous uptick in price as of today, BTC’s daily trading volume appears to have cooled off.

Data from CoinGecko shows that this metric of BTC has seen a notable decline from more than $130 billion as of November 6 to a valuation below $70 billion as of today.

Featured image created with DALL-E, Chart from TradingView



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Bitcoin Surpasses Silver, Claiming 8th Largest Global Asset Title With $1.76T Valuation

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The unstoppable price run of Bitcoin, which started a day after the US presidential elections, is creating a ripple effect in the economy. There’s been a massive jump in value recently, with Bitcoin topping $89k earlier today, showing a 27% increase from the previous week. Then, there are record inflows into Bitcoin ETFs, pushing funds to break some records. This price action also reshaped the list of the world’s biggest assets through market capitalization.

Based on the updated list of top assets, Bitcoin is now ranked 8th on the list of the “Top 10 Largest Assets by Market Cap”, with a total market value of $1.756 trillion, slightly ahead of silver, valued at $1.736 trillion. This is the second time the digital asset has edged out silver in the rankings, driven by a bullish sentiment on Bitcoin ETFs and blockchain in general.

Bitcoin breaking into the top world assets is a testament to the growing public acceptance of the crypto asset and its role as an alternative to traditional assets like gold.

Bitcoin’s Market Value Grows As Price Tops $89k

Bitcoin continues its surprising rally this week, testing another all-time high at $89k. On Tuesday, Nov. 12th, the digital asset surged beyond $89,0000, reflecting an 11.3% increase, while silver dipped by 2%, allowing Bitcoin to notch the 8th spot in the list.

With this latest price action, Bitcoin now trails Saudi Aramco, which is ranked 7th. Amazon, Google, Microsoft, Apple, Nvidia, and gold round out the Top 10. Gold remains the world’s top asset, with a market cap valued at $17.667 trillion, dwarfing Nvidia and Apple by around $3 trillion each.

BTC registers a new ATH. Source: Bitstamp

A Milestone Worth Celebrating

According to The Kobessi Letter, Bitcoin’s current market value and recent price action reflect the digital asset’s potential. The commentary further reacted that gold’s value, which is 10x bigger than BTC, is incredible. However, it also sees the potential of the top digital asset to grow even bigger.

BTCUSD trading at $87,604 on the daily chart: TradingView.com

Bitcoin has consistently increased in price recently, partly driven by Trump’s convincing election victory. Trump has a friendly approach to the crypto community. With the Republicans capturing both houses in the last voting, it will be easier for the incoming president to pursue his crypto-friendly policies.

Big Volumes And Bullish Sentiment From Institutional Investors

Aside from the “Trump Effect,” Bitcoin is also rallying thanks to bullish sentiment from institutional investors. Many financial institutions are integrating BTC and cryptos into their portfolios, boosting the digital assets’ prices. For example, Bloomberg senior analyst Eric Balchunas noted a solid increase in volume for Bitcoin ETFs trading, with iShares Bitcoin Trust (IBIT) enjoying a $4.5 billion trading volume yesterday.

MicroStrategy is another company that’s benefitting from the Bitcoin rush. Michael Saylor’s MicroStrategy holds the biggest Bitcoin-based portfolio, with its shares currently trading at $340. On Monday, the company announced that it had purchased 27,200 BTC, boosting its total to 279,420.

Featured image from Siam Bitcoin, chart from TradingView





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US Could Soon Pass National Bitcoin Reserve Bill

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US Senator Cynthia Lummis remains optimistic that her national Bitcoin reserve bill proposal could pass within the first 100 days of Donald Trump’s second term.

On November 11, Lummis posted on X, expressing confidence that bipartisan support could propel the bill forward if public support grows. She argued that this legislation would enhance the US financial system and reinforce the country’s leadership in Bitcoin.

Senator Cynthia Lummis Seeks Support for National Bitcoin Reserve Plan

Lummis introduced the Bitcoin Reserve bill in July, intending to use funds from the Federal Reserve and Treasury to acquire one million bitcoins. This amount would make the United States the largest government Bitcoin holder, representing about 5% of the network’s supply — similar to the US gold reserve stake.

“We can get this done with bipartisan support in the first 100 days IF we have the support of the people. It is a game changer for the solvency of our nation. Let’s put America on sound financial footing and pass the Bitcoin Act,” Lummis said on X.

The legislation also aims to establish a Bitcoin reserve and secure property rights over Bitcoin ownership and custody. It proposes a decentralized network of secure vaults under Treasury Department oversight, ensuring top-tier asset protection.

Although the bill previously stalled in the Senate, advocates believe it has a better chance now, with Trump favorably inclined toward it.

“The Bitcoin and Crypto industry’s policy wishlist is long and pressing… but the Strategic Bitcoin Reserve is the #1 most urgent and transformational policy on President Trump’s agenda. The downstream effects change everything. We must get it done in the first 100 days,” David Bailey remarked on X.

Despite this enthusiasm, the bill would still need to go through the full legislative process, including approvals from the Senate and House, before reaching the president for final authorization.

The concept of a national Bitcoin reserve bill has already drawn bipartisan interest. Democratic Representative Ro Khanna recently voiced support on a podcast, highlighting Bitcoin’s growth potential.

“We want to make sure that we have openness to having Bitcoin as part of the Federal Reserve and as a reserve asset because of its potential for appreciation and its potential to allow America to set financial standards,” Khanna said.

Additionally, Matthew Sigel, Head of Digital Assets Research at VanEck, pointed out that a national Bitcoin reserve could strengthen US influence in areas such as energy production, artificial intelligence, and decentralized finance. He also noted that the US could use over 200,000 BTC while mining more through public-private partnerships in frontier cities, with no capital risk involved.

Lummis and her supporters believe this proposal could strengthen the Bitcoin-backed economy and ensure America’s position at the forefront of financial innovation.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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