STX, the native token of the Bitcoin-focused Stacks layer 1 smart contract platform, has surged 400% since October 2023, outpacing Bitcoin's performance. Learn more about STX's rally and the upcoming Nakamoto upgrade.
The native token of the Stacks layer 1 smart contract platform, STX, has been creating significant waves in the cryptocurrency market with an impressive 400% rally since October 2023.
During the same period, STX trading volume experienced a remarkable surge of 2,600%, reaching $437.6 million on Feb. 22. Notably, STX's performance outpaced Bitcoin's 90% increase since Oct. 15, 2023. According to Messari, STX also outperformed Bitcoin in 2023, boasting a remarkable 600% year-on-year increase.
The latest State of @Stacks Q4 Key Update underscores Stacks' emergence as the leading Bitcoin layer. The platform is poised to solidify this role with the upcoming Nakamoto upgrade and sBTC. Quarterly metrics show impressive growth, with STX rising by 199%, Stacks revenue skyrocketing by 3,386%, and TVL increasing by 363%. You can read the report for free here.
2023 witnessed a surge in interest in Bitcoin layer-2 projects, driven not only by spot Bitcoin ETFs amassing over $10 billion in assets under management (AuM) but also due to their focus on Bitcoin Ordinals, which now boast a $2.5 billion market cap.
Exploring Stacks' Focus on Bitcoin Layer 2 Smart Contracts
Stacks operates as a layer 2 network for Bitcoin, designed to support core decentralized finance (DeFi) features similar to Ethereum and Solana. Users can issue custom cryptocurrencies, including ERC-20 tokens, stablecoins, wrapped Bitcoin, and nonfungible tokens. Stacks also facilitates a decentralized exchange (DEX) and a liquid staking protocol (LSP).
The increasing interest in Bitcoin layer 2 solutions stems from their role in strengthening the network's value proposition by enhancing transaction processing capabilities.
Increased network activity on the Bitcoin network is often attributed to the popularity of the BRC-20 token standard and Ordinals inscriptions.
STX Price Surge in Anticipation of the Nakamoto Release
The recent surge in STX price aligns with the community's anticipation of the upcoming Nakamoto Release, expected before the Bitcoin halving in April. This upgrade aims to expedite transactions and introduce a new Bitcoin-pegged token (sBTC), among other enhancements. sBTC will facilitate participation in smart contracts for Bitcoin holders and developers building applications on the Bitcoin network.
All these developments have fueled user interest in Stacks, evident in the data from crypto analytics firm Artemis. Daily active addresses on Stacks have surged from 961 to over 4,000 in the last 90 days, and daily transactions have increased from around 8,340 to 33,000 during the same period.
Another crucial metric reflecting user interest and trust in a blockchain network is the total value locked (TVL). DefiLlama data reveals that Stacks' TVL has soared by 830%, reaching $114.87 million on Feb. 22, indicating a substantial capital infusion into the Stacks DeFi ecosystem and emphasizing investor confidence and active participation in DApps.
STX Riding Bitcoin's Uptrend
The excitement surrounding spot Bitcoin ETFs in late 2023, coupled with the eventual approval by the U.S. Securities and Exchange Commission in January 2023, propelled BTC price to a two-year high of $49,000. In parallel, STX surged to $2.06, marking its highest price in nearly two years.
Recent Bitcoin ETF inflows continue to drive a robust rally in BTC, reaching $53,000 on Feb. 20. STX, once again, is following in Bitcoin's footsteps, experiencing an 85% gain in the last 30 days and hitting a new high at $2.90.
Traders are optimistic about Bitcoin's continued upward trajectory in 2024, coupled with the growing momentum of layer 2 Bitcoin development. Stacks is poised to further establish itself as a dominant player in the layer 2 Bitcoin sector.
This article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making any decisions.