Recent advancements in technology, including Ordinals, Inscriptions, BRC-20 tokens, and Runes, have intensified the discussions around Bitcoin scalability solutions. The average transaction fee for Bitcoin jumped from $1.50 in 2022 to $4.20 in 2023, and reached $9.50 so far in 2024, according to a new report released by Binance Research.
, with a market valuation of roughly $450 billion, boasts around $45 billion in total value locked (TVL) across its various Layer-2 (L2) solutions, or 10% of Ethereum’s total value. In contrast, Bitcoin, valued at $1.4 trillion, has only around $2 billion of L2 TVL, which constitutes a mere 0.13% of Bitcoin’s total value.
“Key factors in evaluating Bitcoin scalability solutions include how they address the trustless two-way bridge issue, their relationship and alignment with the Bitcoin base layer, potential fork requirements, and the level of incentive alignment among users, developers, and newcomers…
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