Bitcoin Layer 2 Coins Rally after BTC Halving Event 2024

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Last week on April 19, Bitcoin underwent a productive halving process at block number 840,000. This event led to a decrease of 50% in mining rewards for Bitcoins mined. Following this, Bitcoin’s price has rebounded by over 10%, rising from the recent dip around $60,000. Currently, Bitcoin’s market capitalization stands at an impressive $1.3 trillion. In addition to Bitcoin, various coins built on the Bitcoin network have experienced significant growth in the past few days – surging between 5-20% since the halving event.

In the past three days, the price of STX, the native currency for the Stacks (Bitcoin Layer 2 network), has experienced a significant increase of approximately 20%, reaching $2.87. This impressive growth positions STX as one of the top-performing cryptocurrencies in the top 25 list over the last 24 hours.

After the halving event, Elastos’ ELA token has risen by 11%, and SatoshiVM’s SAVM has experienced a 5% increase in worth. Solutions for Bitcoin Layer 2 generally refer to projects aimed at overcoming transaction speed and capacity constraints on the Bitcoin network. These Layer 2 solutions operate above the Bitcoin blockchain, boosting scalability by handling transactions off-chart.

Bitcoin Transactions Fee Fluctuates

Based on Glassnode’s report, the typical transaction fee climbed close to 0.0020 BTC post-halving, reaching its peak since the beginning of 2018. This spike in fees is linked to the emergence of a new protocol named Runes. With Runes, users can now “carve” and generate tokens on the Bitcoin network. As a result, there was an escalation in anticipation, token creation, and meme coin trading activity, leading to heightened transaction volumes and ultimately pushing up transaction fees.

Starting on April 21, the cost of Bitcoin transactions significantly increased, reaching a peak of $128. This surge in fees generated substantial earnings for miners totaling millions of dollars. However, currently, transaction fees for medium-priority transactions have settled around $8 to $10. From April 15 to 20, Bitcoin’s transaction fees surpassed Ethereum‘s for six consecutive days. Over the past week, the average fee for Bitcoin transactions amounts to approximately $17.8 million.

Over the past few days, Bitcoin Layer 2 solution tokens and Bitcoin Ordinals NFTs have gained significant attention. The plummeting floor price of Bitcoin Runestone by 60% has caused a spike in the prices of other Ordinals such as Bitcoin Puppets and NodeMonkes, which have risen by approximately 20% and 7%, respectively.

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2024-04-22 15:30