Starknet Bridges BTC and ETH on L2, Paving Way for Cross-Chain Expansion
12.03.2025 06:12
Starknet has announced its plan to bridge Bitcoin (BTC) and Ethereum (ETH) on a unified Layer 2 network, aiming to scale Bitcoin’s transaction capacity from a mere 13 transactions per second to thousands. The plan involves using Bitcoin as a settlement layer together with Ethereum, leveraging novel technical proposals like OP_CAT and alternatives such as BitVM. The initiative is backed by the Starknet Foundation and includes partnerships with key players such as Xverse, while influential voices like Ethereum co-founder Vitalik Buterin have expressed support for a secure Bitcoin Layer 2 solution. Additionally, Starknet’s native token (STRK) could gain traction from this integration, as the ecosystem looks to overcome Bitcoin’s programmability limitations and expand its financial use cases through the BTCFi Season program.
The news signals a positive outlook for Bitcoin as it becomes integrated with Starknet’s Layer 2 solution. In the short term, innovative proposals like OP_CAT and partnerships with firms like Xverse may trigger speculative interest and trading volume. Long-term, if the technical upgrades are successfully implemented, Bitcoin’s transaction throughput could see significant improvements, further enhancing liquidity and market confidence.
Ethereum stands to benefit indirectly from improved cross-chain interoperability. While the news primarily celebrates Bitcoin’s scaling potential, Ethereum’s role as one of the two largest blockchains means it may also enjoy increased utility and network activity. In the short term, market responses could be muted, but long-term benefits may include strengthened network effects and greater integration with emerging solutions.
Starknet’s native token, STRK, is likely to capture investor interest as its network embarks on bridging BTC and ETH. In the short term, speculative trading may drive price surges due to the market’s anticipation of enhanced ecosystem utility. Long-term, the token’s value will depend on the successful execution of technical milestones and the broad adoption of its integrated Layer 2 solutions.
Sources
Bitcoin, Ethereum on a single DeFi layer? Starknet’s new plan, revealed
AMBCrypto
12.03.2025 19:00
Starknet to settle on Bitcoin and Ethereum to unify the chains
Cointelegraph
12.03.2025 02:57
Starknet announces plan to bridge Bitcoin and Ethereum on a unified layer 2
crypto.news
12.03.2025 06:09
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