Nexo

Start Earning Up to 16% Interest Automatically

Learn More
Home » Bitcoin » Bitcoin L2s could start a liquidity war this month, KuCoin report suggests

Bitcoin L2s could start a liquidity war this month, KuCoin report suggests

by

Merlin Chain's TVL peaks as Stacks prepares for Nakamoto upgrade.

Bitcoin L2s could start a liquidity war this month, KuCoin report suggests

Share this article

Bitcoin layer-2 (L2) infrastructure Stacks’ upcoming Nakamoto upgrade set to go live this month might start a liquidity war on the Bitcoin finance (BTCfi) ecosystem, according to a report by KuCoin Research.

Merlin Chain is one of the most significant ecosystems within BTCfi sector, with over $2.6 billion in total value locked (TVL). The amount is almost double the TVL shown by the whole BTCfi ecosystem, and it is tied to the Merlins Seal event in preparation for the structure’s native token MERL.

In contrast, while Stacks has also experienced growth in its TVL over the past two months, it remains comparatively modest at $180 million. However, KuCoin analysts predict that the upcoming Nakamoto upgrade for Stacks, which introduces the synthetic Bitcoin token sBTC, might attract investor attention to its ecosystem.

Moreover, this event could trigger a potential response from Merlin Chain, which has been actively engaging in lock-up staking activities, igniting a competitive struggle for assets and user attention among Bitcoin L2 solutions, marking a pivotal moment in the BTC expansion narrative.

“Perhaps, this will truly kick off a battle for assets and attention among BTC Layer2 solutions,” conclude KuCoin analysts on the potential Bitcoin ‘L2 Wars’.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing’s own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight - and oversight - of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.