Stacks has finally launched its Nakamato update. An ATH of users and block confirmations under 10 seconds. The start of DeFi on Bitcoin?
Stacks launches Nakamoto
The long-awaited L2 Bitcoin Stacks update named Nakamoto is finally live since yesterday. It was intended to greatly improve transaction speeds , even rivaling Solana.
Since yesterday, a new ATH of users and number of transactions has been reached. In total, 1,8000 transactions , more than 3000 blocks created with 100% Bitcoin finality and a user ATH with more than 6,500 active users:
“This is a huge improvement over Bitcoin adoption. With the Nakamoto upgrade, Stacks unlocks the full potential of DeFi on Bitcoin: fast 10-second blocks and 100% Bitcoin finality.”
With transactions under 10 seconds on an application like Xverse or on the BitFlow DEX, DeFi is ready to be explored on Bitcoin. Bitcoin liquidity now has a direct entry point into DeFi. It is still too early to know if this will be a big success, however, Stacks has the potential to dominate Bitcoin L2s.
As we wait for the launch of their sBTC token, Stacks is ushering in a “new era for Bitcoin.” According to Stacks founder Muneeb, sBTC is expected to arrive in “4-6 weeks.”
ViktorDeFi states on X that the L2 Bitcoin sector will be the next big narrative in the coming months:
“Currently, the fifth best performing narrative, Bitcoin, has had a great year.
Stacks’ Nakamoto Upgrade is poised to increase these numbers.
With the upgrade, Stacks will have faster block times, 100% Bitcoin finality, and many new exciting use cases for Bitcoin.
The upgrade is live, the game is on now. 2025 is going to be surreal for the Bitcoin narrative.”
Bitcoin and DeFi
At the same time, Cardano announced the ability to use its Bitcoins on Cardano. Hoskinson said that Cardano will become “the smart contract development layer” for Bitcoin DeFi.
So the competitor of Stacks could be Cardano. Stacks has the advantage of being a Bitcoin OG. However, Cardano offers the possibility of using its BTC directly without having to go through the STX or sBTC token:
They say it inherits the security of BTC, but unless all BTC miners participate, it certainly wouldn’t be as difficult for a sophisticated actor to attack L2 as it would be to attack Bitcoin L1.
Cardano, by comparison, has a very solid consensus setup on its own.
Additionally, to use Stacks you have to buy STX to pay transaction fees, which you can’t do with your native BTC… because you don’t have any STX yet. That means an external exchange has to be involved.
In contrast, with what Cardano is currently building, native BTC will be automatically bridged and users will be able to pay transaction fees in (apparently) native BTC. Users may not even be able to tell they’re using Cardano,” Tobias says.
At the time of the upgrade launch, Stacks rapidly increased by 14% to $1.92. It has since dropped back to $1.85 as Bitcoin approaches a new ATH :
“In a sea of L2s in recent years, Stacks stands out with all the features it has and with its loyal and mature community. We will see more activities and dApps. We have a lot of work.” says Kenliao, founder of the Xverse wallet.
