As the demand for layer-2 bitcoin grows, the price of STX will exceed the market
Having posted a 400% rally since October 2023, STX, the native Bitcoin-focused layer 1 smart contract platform STX, is making waves in the crypto market.
STX trading volume jumped an impressive 2,600% in the same period to $437.6 million on February 22. STX's performance surpassed Bitcoin (BTC)'s 90% increase since October 15, 2023. It increases 600% per year.
The status of @ stack Q4
Key Update: Stacks has emerged as a leading Bitcoin hedge, and could strengthen this role with the upcoming Nakamoto Update and sBTC.
QoQ Metrics – STX ⬆️ 199% – Stacked Revenue ⬆️ 3,386% – TVL ⬆️ 363%
Read the report for free pic.twitter.com/zbLPvDkyrV
— Messari (@MessariCrypto) February 15, 2024
This year saw a growing interest in Bitcoin Layer-2 projects, not only because of the location of Bitcoin ETFs, which now have more than 10 billion dollars in assets under management, but also because of their focus on Bitcoin Ordinals. 2.5 billion dollar market value.
The stack focuses on Bitcoin layer 2 smart contracts
Stack is Bitcoin's Layer 2 network designed to support decentralized finance (DeFi) features similar to those found in other Layer 1 ecosystems such as the Ethereum network and Solana.
The stack allows users to mine custom cryptocurrencies from Ethereum ERC-20 tokens and stablecoins, coined Bitcoin, and Invincible Token alike. The stack supports Decentralized Exchange (DEX) and Liquid Stacking Protocol (LSP).
Growing interest in Bitcoin Layer 2s hinges on their role in strengthening the network's value proposition (and currency) by enabling more transactions.
Increasing network activity on the Bitcoin network is often attributed to the popularity of the BRC-20 token standard and Ordinals.
The STX price meeting is coming soon as the network update approaches
STX's price rally comes as the community prepares for the upcoming update, known as the Nakamoto Release, which is expected to take place before Bitcoin drops in April.
The update is expected to speed up transactions and introduce a new Bitcoin-pegged token (sBTC), among other improvements. sBTC is used by Bitcoin owners who want to participate in smart contracts and developers who want to build applications on Bitcoin.
All these developments have increased users' interest in Stacks. According to data from crypto analytics firm Artemis, the number of daily active addresses on Stax has increased from 961 to more than 4,000 in the past 90 days. Similarly, daily transactions rose from 8,340 to 33,000 during the same period.
Another metric used to gauge user interest and trust in the blockchain network is the Total Value Locked (TVL) on the platform. According to data from Defillama, Stacks' TVL increased 830% from $12.35 million on October 15, 2023, to $114.87 million on February 22.
The increase in TVL indicates a significant increase in capital in the Stacks DeFi ecosystem, reflecting investor confidence and active participation in DApps.
Related: Valkyrie Launches 2x Leveraged Bitcoin Futures Fund
Bitcoin's growth drove the rally in STX
In the year Excitement about the Spot Bitcoin ETF in late 2023 and eventual approval by the US Securities and Exchange Commission in January 2023 sent BTC prices soaring to a two-year high of $49,000. Similarly, STX rose to $2.06, its best price in two years.
Recently, increasing Bitcoin ETF inflows have been driving a strong rally in the price of BTC as it rose to 53,000 in February. STX, again, followed in the footsteps of Bitcoin, gaining 85% in the last 30 days to hit a new high. For $2.90.
With traders expecting the price of Bitcoin to rise in 2024 and the increasing coverage of the 2Bitcoin development, Stack may establish itself as one of the major projects in the 2Bitcoin sector.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
