Bitcoin L2s: Stacks vs. Lightning Network
Stacks (Smart Contracts)

Growth: TVL surged to $150M+ in 2024, driven by DeFi apps like ALEX.

Use Case: Enables Bitcoin-secured dApps (e.g., NFTs, lending) but faces scalability limits (~4 TPS).

Lightning (Payments)

Volume: Processes $500M+ monthly, yet adoption plateaus due to liquidity fragmentation.

Efficiency: Handles 1M+ daily transactions (micro-payments), but UX remains complex for non-crypto users.

Tradeoffs:
Stacks expands Bitcoin’s utility beyond store-of-value, while Lightning excels in speed/cost—yet both struggle to escape Bitcoin’s niche.

Outlook: Success hinges on simplifying UX and bridging liquidity gaps.