Starknet, a Layer 2 protocol aiming to scale both Bitcoin and Ethereum, is gaining traction due to its ability to facilitate cross-chain interoperability. The protocol allows for seamless asset transfers between these major crypto networks, which may unlock new decentralized finance (DeFi) use cases and increase liquidity. This development comes amidst increasing prices for both Bitcoin and Ethereum while trading volumes see a decline. Industry figures including Ethereum co-founder Vitalik Buterin have emphasized the potential of integrating these networks through shared scaling solutions. This could create easier channels for decentralized asset exchange, leveraging the deep liquidity pools of both networks. Starknet’s use of zero-knowledge (ZK) technology and experienced development team further strengthens its position as a reliable protocol for cross-chain flows. Vitalik Buterin highlighted that increased interoperability between Ethereum and Bitcoin can enable broader DeFi applications such as new security structures and decentralized exchanges supporting BTC and ETH pairs. He also stressed the need to decentralize the exchange layer to combat recurring issues with centralized platforms.