Bitcoin layer 2s among catalysts of this bull cycle, Bitcoin OG says

The emerging Bitcoin layer-2 sector will be one of the main narratives driving BTC’s price to unprecedented highs in this bull cycle, says Bitcoin OG Dan Held.

The integration of layer-2 blockchains on top of Bitcoin could unlock its true potential and propel its price to unprecedented highs, says Bitcoin OG and former maximalist Dan Held. 

“People are going to take their Bitcoin, lock it up, stake it to earn yield. They’re going to borrow against it,” Held said during an exclusive interview with Cointelegraph.

Together with the upcoming halving, the recent Bitcoin (BTC) exchange-traded fund approvals and a potential interest rates cut from the United States Federal Reserve, Held believes that Bitcoin decentralized (DeFi) could spark the biggest bull run in history.

A former Bitcoin maximalist, Held has recently turned into one of the most vocal supporters of Bitcoin layer 2s, which allow developers to build smart contracts on the blockchain, expanding the capabilities of the protocol.

According to Held, Bitcoin will soon take over a large portion of the DeFi market, competing with established platforms such as Ethereum and Solana.

“Bitcoin has the most number of users, the most liquidity and will be around the longest,” said Held.

“If you’re going to build an app, and you’re going to build it for longevity, this is the place you’d want to go,” he said. 

Currently, about $2.2 billion in value is locked on the Bitcoin blockchain. According to Panter Capital, this emerging sector has a $500 billion potential.

To know more about the emerging Bitcoin DeFi sector and how it could impact the current bull run, check out the full interview on Cointelegraph’s YouTube channel, and don’t forget to subscribe!