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As Bitcoin celebrates a new all-time high, it's time to take a closer look at one of the investment narratives that's helping drive renewed interest toward the asset: Bitcoin L2s.
Bitcoin is the oldest blockchain and, of course, the most battle-tested crypto. Its biggest downside? Slow and expensive transactions, particularly during periods of high activity. Lightning Network, a payments channel protocol in Bitcoin’s scaling scene, is an earnest and interesting effort here, but it’s failed to reach breakout traction to date due to UX and liquidity issues.
That said, the arrival of Ordinals NFTs in January 2023 kicked off a huge resurgence of interest in building on Bitcoin, and that revival led to a reinvigoration of existing scaling efforts like Stacks and also to a boom of new efforts with a range of different approaches.
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