Summary:
Galaxy Research predicts many Bitcoin Layer-2 networks may not survive.
Rollups could cost millions annually due to high transaction fees.
Current Bitcoin price is $61,035.00, down 3.77%.
Bitcoin Layer-2 Networks Under Scrutiny
According to a recent analysis from Galaxy Research, many Bitcoin Layer-2 networks may struggle to survive. The study reveals that Bitcoin rollups could require millions of dollars annually just to remain operational due to high transaction fees.
The Cost of Keeping Afloat
The findings highlight the economic challenges these networks face. With rising operational costs driven by transaction fees, the sustainability of these Layer-2 solutions is in question.
Current Crypto Market Prices
In the current market, Bitcoin is priced at $61,035.00, reflecting a 3.77% decline, while Ethereum sits at $2,948.42, down 2.96%. Other notable cryptocurrencies, such as BNB, SOL, and XRP, are also experiencing losses.
Future of Bitcoin Rollups
As developers continue to explore rollup technology to enhance transaction speeds and efficiency, the financial implications of these solutions remain a critical concern. The potential for transaction rollups to improve Bitcoin's scalability is overshadowed by the looming threat of unsustainable costs.
Image Source: Bitcoin Today
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