Starknet targets 30x faster Bitcoin DeFi with $0.002 fees

Ethereum (CRYPTO:ETH) layer-2 scaling solution Starknet (CRYPTO:STRK) plans to become the first blockchain network settling transactions on both Bitcoin (CRYPTO:BTC) and Ethereum, aiming to unify the two ecosystems and expand decentralised finance (DeFi) opportunities.

Announced on March 11, the initiative seeks to address Bitcoin’s scalability challenges by reducing transaction fees from $2 to $0.002 and increasing throughput from 13 to thousands of transactions per second (TPS).

Starknet’s roadmap outlines its goal to serve as Bitcoin’s execution layer, enabling staking, lending, and yield farming through smart contracts.

The project aims to unlock Bitcoin’s $1.3 trillion market cap for DeFi, as most BTC remains idle in wallets due to network limitations.

“Most Bitcoin today sits static in wallets and exchanges, constrained by the network’s original design,” the Starknet Foundation stated.

Key partnerships include integrating with Bitcoin wallet Xverse by Q2 2025 to offer a “full DeFi experience” for BTC holders.

Xverse founder Ken Liao emphasised the collaboration’s role in achieving Bitcoin’s “DeFi take-off moment,” noting the endgame is “trustless DeFi on Bitcoin” despite current reliance on federated bridges.

Starknet is also advocating for the adoption of OP_CAT, a Bitcoin upgrade that would enable native smart contracts and trustless bridging.

While OP_CAT’s implementation remains uncertain, Starknet plans interim solutions like BitVM-powered bridges to secure transactions.

Technical upgrades aim to slash block confirmation times from 10 minutes to two seconds, while StarkWare—the company behind Starknet—is accumulating Bitcoin reserves to bolster ecosystem incentives.

Ethereum co-founder Vitalik Buterin endorsed the initiative, stating a functional Bitcoin L2 could “make crypto payments great again” by enabling scalable, trustless asset transfers.

The protocol’s phased approach includes federated bridges for initial integration, with full decentralisation targeted by early 2026.

Developers anticipate these efforts will merge Bitcoin’s security with Ethereum’s programmability, creating a unified layer for cross-chain liquidity.

“This isn’t just about scaling—it’s about redefining what Bitcoin can do,” StarkWare CEO Eli Ben-Sasson remarked.

At the time of reporting, the Starknet (STRK) price was $0.1545, and the Bitcoin (BTC) price was $81,619.87.