Bitcoin Layer 2 Coins STX, ELA, SAVM Soar Past BTC Post Halving

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NFT Daily Dose

8 min readApr 29, 2024

In the dynamic landscape of cryptocurrency, the aftermath of Bitcoin’s halving events often sets the stage for captivating shifts in market dynamics. Following the recent halving, attention has swiftly turned to layer 2 coins, with STX, ELA, and SAVM emerging as frontrunners in the post-halving rally. These Bitcoin layer 2 solutions, designed to enhance Bitcoin’s scalability and functionality, have surged past the pioneer cryptocurrency, igniting discussions and sparking renewed interest in alternative blockchain projects.

This article delves into the soaring trajectory of STX, ELA, and SAVM, exploring the factors driving their outperformance in the wake of Bitcoin’s halving and the implications for the broader cryptocurrency ecosystem.

Understanding Bitcoin layer 2 solutions

Layer 2 solutions are protocols or frameworks built on top of the Bitcoin blockchain to address its scalability limitations, transaction speed, and cost issues. These solutions aim to improve the efficiency and usability of Bitcoin by processing transactions off-chain or through sidechains, thereby reducing congestion on the main blockchain.

One of the primary challenges facing Bitcoin is its limited transaction throughput, often resulting in slow confirmation times and high fees during periods of network congestion. Layer 2 solutions offer innovative approaches to alleviate these issues without compromising the security and decentralization of the underlying Bitcoin network.

Scalability and transaction speed in blockchain networks

Scalability allows blockchain networks to handle a higher volume of transactions, ensuring they can accommodate growing user bases and increasing demand.
Transaction speed refers to the time it takes for transactions to be confirmed and added to the blockchain, impacting user experience and the usability of decentralized applications.
Faster transaction speeds improve the efficiency of blockchain networks, enabling near-instantaneous transfers of value and reducing delays in transaction processing.
Scalability and transaction speed are critical for mainstream adoption of blockchain technology, as they directly impact usability, cost-effectiveness, and competitiveness compared to traditional financial systems.
Enhanced scalability and transaction speed can facilitate various use cases, including payments, remittances, decentralized finance (DeFi), non-fungible tokens (NFTs), and supply chain management, among others.

STX (Stacks)

STX, also known as Stacks, is the native token of the Stacks blockchain network. Stacks is a layer 1 blockchain that is designed to bring smart contracts and decentralized applications (dApps) to the Bitcoin network. It achieves this by connecting to Bitcoin through a mechanism called “stacking,” which involves using Bitcoin as the base layer for security and consensus while enabling smart contract functionality on top.

Enables smart contracts and dApps on Bitcoin
Provides security for applications built on Stacks by leveraging Bitcoin’s proof-of-work consensus mechanism
Allows users to “stack” STX tokens to earn Bitcoin rewards

Key Features:

Security: Built on top of Bitcoin, inheriting its robust security features.
Scalability: Uses a separate blockchain for computation, alleviating scalability issues on Bitcoin.
Clarity Smart Contracts: A secure and predictable smart contract language for developers.
Interoperability: Allows for communication between applications built on Stacks and Bitcoin.

STX (Stacks) Market Stats

Here’s a breakdown of STX’s current market stats from reliable sources:

Price: ~$2.52 USD (may vary by exchange) (CoinMarketCap, Binance)
Market Cap: ~$3.76 Billion USD (CoinMarketCap)
24 Hour Trading Volume: ~$80.09 Million USD (CoinMarketCap)
Circulating Supply: ~1.45 Billion STX (CoinMarketCap)
Max Supply: 1.82 Billion STX (CoinMarketCap)

ELA (Elastos)

ELA, short for Elastos, represents the native cryptocurrency of the Elastos blockchain platform. Elastos aims to create a decentralized internet infrastructure that prioritizes security, privacy, and ownership of digital assets. At its core, Elastos seeks to establish a secure and decentralized environment where users have full control over their data and digital assets.

What it does:

Powers transactions on the Elastos SmartWeb network
Used for network fees, staking, and governance
Enables developers to build and deploy decentralized applications (dApps)

Key Features:

Scalability: Uses sidechain architecture to address scalability limitations of the main blockchain.
Security: Leverages the security of the underlying Ethereum blockchain for core functions.
Decentralization: Aims to create a user-controlled internet with no single point of failure.
Interoperability: Allows for communication and interaction between different blockchains.

Market Analysis

Price: ~$3.22 USD (may vary by exchange) (CoinMarketCap, Coinbase, Bybit)
Market Cap: ~$70.86 Million USD (CoinMarketCap)
24 Hour Trading Volume: ~$837,758.67 USD (CoinMarketCap)
Circulating Supply: ~22.01 Million ELA (CoinMarketCap)
Max Supply: 33 Million ELA (Coinbase)

SAVM (SatoshiVM)

SAVM, which stands for SatoshiVM, represents a unique project in the cryptocurrency space. SAVM aims to introduce innovative solutions to enhance the functionality and scalability of blockchain networks, with a particular focus on the Bitcoin blockchain.

SatoshiVM is inspired by the vision of Satoshi Nakamoto, the pseudonymous creator of Bitcoin, and seeks to build upon the principles of decentralization, security, and transparency established by the Bitcoin network. The project is named after Satoshi Nakamoto to honor the pioneering work that laid the foundation for the entire cryptocurrency ecosystem.Market Analysis

What it does:

Enables faster and cheaper transactions on Bitcoin by utilizing zero-knowledge rollup technology.
Bridges the Ethereum Virtual Machine (EVM) with Bitcoin, allowing developers to deploy familiar Ethereum smart contracts on the Bitcoin network.
Aims to unlock new use cases for Bitcoin, such as decentralized finance (DeFi) and non-fungible tokens (NFTs).

Key Features:

Security: Inherits security from the Bitcoin blockchain.
Scalability: Aims to address Bitcoin’s scalability limitations by processing transactions off-chain.
Interoperability: Allows for interaction between Bitcoin and Ethereum ecosystems.
EVM Compatibility: Enables developers to leverage existing smart contract tools and expertise.

Market Analysis

Price: ~$3.96 USD (may vary by exchange)
24 Hour Trading Volume: ~$110,237 USD (CoinGecko)
Market Cap: ~$79.2 Million USD (CoinMarketCap)

Factors Driving the Rise of Bitcoin Layer 2 Coins

Several factors are driving the rise of Bitcoin layer 2 coins, contributing to their notable outperformance compared to Bitcoin itself. These factors include:

Scalability Solutions: Bitcoin layer 2 coins offer scalability solutions that address the limitations of the Bitcoin blockchain, such as slow transaction speeds and high fees. By processing transactions off-chain or through sidechains, layer 2 solutions enable faster and more cost-effective transactions, making them attractive alternatives for users and investors.
Enhanced Functionality: Layer 2 coins introduce new features and functionalities to the Bitcoin ecosystem, such as smart contracts and decentralized applications (dApps). These enhancements broaden the utility and potential use cases of Bitcoin, attracting interest and investment from individuals and institutions seeking innovative blockchain solutions.
Market Demand: There is a growing demand for scalable and efficient blockchain solutions, driven by increasing adoption of cryptocurrencies and decentralized finance (DeFi) applications. Bitcoin layer 2 coins capitalize on this demand by offering improved scalability and transaction speeds, positioning themselves as valuable assets in the rapidly evolving blockchain landscape.
Network Effects: As more users and developers adopt Bitcoin layer 2 solutions, network effects come into play, further fueling their growth and adoption. Network effects occur when the value of a network or platform increases as more participants join, leading to a positive feedback loop of adoption and usage.

Post-Halving Surge in Bitcoin Transaction Fees

Following the halving of Bitcoin’s mining rewards, there has been a notable surge in transaction fees on the Bitcoin blockchain. This increase in fees can be attributed to various factors, including heightened transaction activity and the launch of new protocols like Runes. Data from Glassnode shows that the mean transaction fee soared to nearly 0.0020 BTC, reaching its highest level since early 2018. The surge in fees underscores the growing demand for blockchain transactions and highlights the need for scalability solutions to address congestion on the Bitcoin network.

Runes Protocol: Catalyst for Increased Transaction Activity

The Runes protocol is a new and innovative addition to the blockchain space, specifically designed to operate on the Bitcoin blockchain. It introduces a unique mechanism that allows users to “etch” and mint tokens directly on the Bitcoin network. This protocol enables users to create and trade tokens without relying on traditional smart contract platforms like Ethereum. The launch of the Runes protocol has sparked significant interest and speculation, leading to a surge in transaction activity on the Bitcoin blockchain. As a result, it has contributed to increased transaction fees and heightened market activity, showcasing its potential to influence the broader cryptocurrency ecosystem.

PARTNER WITH BITCOIN LAYER 2 SCALING SOLUTIONS

Explore the world of Bitcoin layer 2 solutions today and unlock the potential for enhanced scalability, efficiency, and functionality within the cryptocurrency ecosystem. Whether you’re a seasoned investor or just beginning your journey in blockchain technology, delve into the diverse offerings of layer 2 projects like STX, ELA, and SAVM. Discover how these innovative solutions are revolutionizing the way we interact with digital assets and paving the way for a more inclusive and decentralized future. Embrace the opportunities presented by layer 2 solutions and join the movement towards a more efficient and interconnected blockchain ecosystem.

Final Thoughts

In conclusion, the post-halving surge in transaction fees on the Bitcoin blockchain, coupled with the impressive performance of tokens associated with Bitcoin Layer 2 Blockchain Solutions, reflects the dynamic and evolving nature of the cryptocurrency market. The rise of layer 2 coins like STX, ELA, and SAVM demonstrates the growing demand for scalable and efficient blockchain solutions, while the introduction of protocols like Runes underscores the continuous innovation within the industry. As the blockchain ecosystem continues to evolve, it is essential to monitor these developments and their impact on transaction costs, network scalability, and overall market dynamics. Despite challenges such as scalability limitations and fluctuating transaction fees, the enthusiasm and investment surrounding Bitcoin and its associated technologies signal a promising future for decentralized finance and blockchain innovation.