Originally published on: September 26, 2024
Stacks (STX), the native token of the Stacks layer-2 smart contract platform centered around Bitcoin, has witnessed a remarkable surge of roughly 30% in the past week, buoyed by Bitcoin’s resurgence.
Stacks’ Rising Momentum
The trading volume for STX has surged twofold over the same period, hitting $148.2 million on Sept. 26. This surpasses Bitcoin’s 7.5% increase since September 18, underscoring the growing interest in STX within the crypto community.
Upcoming Nakamoto Release Upgrade
The STX rally is closely tied to the impending Nakamoto Release upgrade, slated for activation on October 9. This significant development, announced by the Stacks Foundation, is poised to enhance decentralized finance (DeFi) on Bitcoin by expediting transactions and introducing a new Bitcoin-pegged stablecoin, sBTC.
Introduction of sBTC on Stacks
The introduction of sBTC presents an opportunity for Bitcoin holders to engage in smart contracts and for developers to create applications on the Bitcoin network. The community is gearing up for this launch with over 20 developer workshops worldwide to celebrate this milestone.
Integration with Solana and Aptos
Further bolstering the ecosystem, Solana and Aptos have announced the integration of sBTC, allowing developers to leverage the stablecoin within decentralized applications (DApps) on their platforms. This move broadens the utility of Bitcoin assets beyond traditional trading and holding methods.
Rising Smart Contract Deployment
The increased adoption of Stacks is evident in the surge of smart contract deployments on the blockchain, reaching a record high of 1,400 in August. Additionally, DEX trading volume on the Stacks network has seen exponential growth, emphasizing the ecosystem’s vitality and appeal.
Growing User Trust and Participation
The rise in the total value locked (TVL) on Stacks further signals a surge in investor confidence and active engagement with DApps on the platform. This influx of capital underscores the increasing trust in the Stacks network and its DeFi ecosystem.
Anticipated Growth and Future Outlook
With the market eyeing a continued uptrend in Bitcoin prices and the emergence of layer 2 Bitcoin solutions, Stacks is well-positioned to solidify its position in the layer 2 Bitcoin sector. As the industry evolves, Stacks could emerge as a key player in the decentralized finance landscape.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Readers are urged to conduct their own research before making any investment decisions.
