Bitcoin L2 Stacks uses the infra of Wormhole to provide the native liquidity of Bitcoin to Solana et Su.
Wormhole – An interoperability protocol of the blockchain which obtained funding of $ 225 million to an evaluation of $ 2.5 billion in Coinbase Ventures, Multicoin Capital and Breven Howard – added the support for batteries, one of the first layer 2 networks (L2) on Bitcoin.
With integration, the two key stacks – SBTC and STX – can now move through other blockchains using the Wormhole infrastructure, starting with Solana et Su, Wormhole said in an announcement on Tuesday, July 1.
The tokens will adopt the native token (NTT) transfer standard of Wormhole, “allowing the indigenous program in the main challenge ecosystems”.
Wormhole currently has a total locked value (TVL) of 2.5 billion dollars and daily bridge volumes reaching up to $ 35.4 million in last month, according to Artemis data.
SBTC de Stacks is a Bitcoin yield token designed to allow people to use BTC in DEFI, while STX is the native utility token of the Stacks network and is used to activate smart contracts, among other functions.
At the time of the drafting of this document, the market capitalization of STX represents just over $ 1 billion, down approximately 80%, compared to more than $ 5 billion in March 2024, according to Coingecko data.
With the update, users can now move native batteries in DEFI applications on other channels, not just batteries. The active ingredients will use NTT’s so-called “Burn fashion” when Deployment on Solana et Suit, which means that no wrapped token as an wrapped Bitcoin (WBTC) is involved in the process, according to the ad.
The latest integration could potentially help revive the activity on the chain for batteries, as the data suggest that users may have drawn liquidity after the bracing of Q2 2024, when STX has reached its top of all time.
Defillama’s data show that TVL in Stacks has dropped more than half since April 2024, while it exceeded $ 400 million at around 161.5 million dollars from press time.
Bitcoin Scaling Solutions has had an influx of new players taking market share in the past year. Last June, Stacks was the fourth largest Bitcoin Sidechain in TVL, with around $ 137 million at the time. Today, with more than $ 161 million, it is the 11th largest, with HEMI recently launched from Jeff Garzik by taking first place by Defi TVL, with nearly $ 990 million.
Opportunity for half a tin
Wormhole says that integration will address the “massive opportunities for market capitalization of 2 billions of dollars of Bitcoin, which has largely remained on the sidelines of DEFI innovation.”
At the beginning of 2024, Pantera Capital, a hedge fund focused on California crypto, published a report indicating that the value locked in Bitcoin Defi could reach up to $ 450 billion.
At the time, analysts of the hedge funds explained that even if Bitcoin had not been used for Defi as much as Ethereum, the creation of decentralized applications on Bitcoin could be a huge “unexploited opportunity of half a billion dollars”.
