STX, the native token of the Bitcoin-focused Stacks layer 1 smart contract platform, is making waves in the crypto market after posting a 400% rally since October 2023.
STX trading volume has jumped a staggering 2,600% over the same period to $437.6 million on Feb. 22. STX’s performance surpasses Bitcoin’s (BTC) 90% increase since Oct. 15, 2023, and according to Messari, STX outperformed Bitcoin in 2023 with a 600% increase year-on-year.
State of @Stacks Q4
Key Update:
Stacks emerged as the leading Bitcoin layer, and may solidify this role with the upcoming Nakamoto upgrade and sBTC.
QoQ Metrics
– STX ⬆️ 199%
– Stacks revenue ⬆️ 3,386%
– TVL ⬆️ 363%
Read the report for free https://t.co/MBzi8sLg9t pic.twitter.com/zbLPvDkyrV
— Messari (@MessariCrypto) February 15, 2024
This year has seen a growing interest in Bitcoin layer-2 projects not only because of spot Bitcoin ETFs, which now have more than $10 billion in assets under management (AuM), but also because of their focus on Bitcoin Ordinals, which already have a $2.5 billion market cap.
Stacks focuses on Bitcoin layer 2 smart contracts
Stacks is a layer 2 network for Bitcoin designed to support the core decentralized finance (DeFi) features similar to those found within other layer 1 ecosystems such as the Ethereum network and Solana.
Stacks – Explained. Source: Stacks.co
Stacks allows users to issue custom cryptocurrencies similar to Ethereum’s ERC-20 tokens and stablecoins, wrapped Bitcoin, and nonfungible tokens. Stacks also supports a decentralized exchange (DEX) and a liquid staking protocol (LSP).
The growing interest in Bitcoin layer 2s is hinged on their role of strengthening the network’s value proposition (and currency) by enabling it to process more transactions.
Increasing network activity on the Bitcoin network is usually credited to the popularity of the BRC-20 token standard and Ordinals inscriptions.
STX price rallies as an upcoming Network update approaches
The STX price rally comes as the community prepares for the upcoming update known as the Nakamoto Release, which is expected to take place before the Bitcoin halving in April….
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