The latest Binance Research report points out the rise in BTC's transaction fees, soaring from $1.50 in 2022 to $9.50 in 2024, highlighting the urgent need for scalability solutions. Innovations such as Ordinals inscriptions, BRC20 tokens, and the Runes protocol have spurred discussions on scalability, signaling a significant shift towards a more extensive Bitcoin network capable of accommodating various applications.

In contrast, Ethereum's layer two (L2) solutions constitute approximately 10% of its total market value, surpassing Bitcoin's 0.13% in L2 Total Value Locked (TVL). This significant difference not only underscores the underutilization of Bitcoin's L2 potential but also identifies a crucial area for expansion. Primary scalability solutions for Bitcoin revolve around trustless two-way bridges, alignment with the base layer, and incentives promoting collaboration among users, developers, and newcomers to the crypto space.

The emergence of infrastructure-level technologies like Taproot and BitVM is broadening the scope of possibilities for building on top of Bitcoin. While projects like the Lightning Network exist, they represent only a fraction of the growing array of solutions, including sidechains and zero-knowledge rollups, all aimed at boosting Bitcoin's throughput and reducing its transactional burden.

The Binance report concludes by highlighting Bitcoin's dynamic evolution as it integrates decentralized finance (DeFi) primitives such as stablecoins and advanced trading protocols. This evolution is crucial for adapting to the increasing demands on the network, evident from the expanding mempool and escalating transaction fees.

While interim relief is provided by existing solutions like the Lightning Network, the future potential of Bitcoin scalability lies in the broader adoption of zero-knowledge rollups and other innovative L2 technologies currently under development.