Polkadot Parachains Halt amid Major Upgrade, Bitcoin Layer 2s Gain Traction

By: Isha Das

Parachains on Polkadot network temporarily halted block production after a major runtime upgrade was implemented. This halt, lasting for approximately an hour, had noticeable impacts across the Polkadot ecosystem, including Moonbeam, an Ethereum-compatible smart contract parachain. However, normal operations resumed shortly and reported to be viable as scheduled.

In the meantime, Bitcoin Layer 2s, specifically STX, ELA, and SAVM, have been observed to outperform Bitcoin itself. The pattern spotted might be an outcome of the recently rife Bitcoin Halving, directing significant action towards Layer 2s.

The recent Polkadot upgrade, known as the JAM upgrade, is expected to improve the relay chain and offer a decentralized hybrid system that melds Ethereum's smart contract features with Polkadot's architectural framework. Although issues were encountered, they do not seem to have affected the DOT price, which was seen to increase by approximately 5% within the reporting period.

In the parallel, the crypto market is witnessing daily changes with the Layer 2s and Bitcoin, creating a new dynamic to keep an eye on in the coming days. The intricacies of these developments and their potential impacts on the wider crypto market remain to be monitored closely.