Major investors, including Pantera, OKX, Polychain, and Binance, are increasingly recognizing the potential of Bitcoin layer-2 solutions like Stacks, indicating a shift in industry focus.

The anticipated reduction in transaction times positions Stacks to compete effectively with highly scalable networks like Solana.

The Nakamoto Upgrade, set to launch on August 28, represents a significant advancement for Stacks (STX), the largest Bitcoin layer-2 network by market capitalization.

This upgrade is designed to dramatically enhance transaction efficiency, reducing average settlement times from over 10 minutes to just five seconds.

With the introduction of new functionalities, including minting liquid stacking tokens and integrating with decentralized finance (DeFi) applications, the upgrade aims to attract developers and facilitate rapid implementation of innovative strategies.

A key feature of the upgrade will be the launch of sBTC, a decentralized asset pegged 1:1 to Bitcoin, which will improve Bitcoin's usability across DeFi, NFTs, and gaming.

The upgrade aims to simplify Bitcoin's use in DeFi and gaming, encouraging more creators to engage with the platform.

Developers anticipate that the upgrade will attract more creators in the gaming and NFT sectors, further expanding the Stacks ecosystem.

The Stacks upgrade and the launch of sBTC coincide with a vibrant development phase in Bitcoin's ecosystem, promising further innovation and competition with other scalable networks.

The introduction of sBTC will enable native Bitcoin use in various DeFi applications, enhancing the overall ecosystem.

The launch of the Ordinals Protocol has sparked renewed interest in Bitcoin's scalability and DeFi potential, leading to the emergence of over 80 new layer-2 networks.

As of August 26, 2024, the STX token has rebounded significantly, trading at $1.80, reflecting a 68% increase from its lowest point earlier in the month.