STX, the native token of the Bitcoin-focused Stacks layer-2 smart contract platform, has seen a significant surge in value over the past week, riding on Bitcoin’s recovery. The token is up approximately 30% in the last seven days, outperforming Bitcoin’s 7.5% increase during the same period.
One of the key factors driving the momentum behind STX is the upcoming Nakamoto upgrade, scheduled to be activated on October 9. This upgrade is expected to enhance decentralized finance (DeFi) on Bitcoin by improving transaction speeds and introducing a new Bitcoin-pegged token, sBTC. The introduction of sBTC will allow Bitcoin holders to participate in smart contracts and developers to build applications on the Bitcoin network.
To celebrate the Nakamoto upgrade, the Stacks community will be hosting more than 20 developer workshops worldwide, offering participants the opportunity to earn STX tokens through lectures, live demonstrations, and technical challenges. Additionally, integrations with platforms like Solana and Aptos will enable developers to incorporate sBTC into decentralized applications (DApps), providing more utility for Bitcoin holders beyond just holding or trading.
The growth of the Stacks network has also been fueled by a record number of smart contracts deployed on the platform, reaching an all-time high of 1,400 in August. DEX trading volume on the Stacks network has surged by over 31,300% in just over a week, indicating increased user interest and trust in the platform. The total value locked (TVL) on Stacks has also seen a significant increase, rising by 70% from $91.1 million to $112.5 million.
The approval of US-based spot Bitcoin ETFs and anticipation of the Bitcoin halving in the first quarter of 2024 have contributed to the overall uptrend in Bitcoin’s price, which has reached as high as $65,800. STX has followed suit, reaching an eight-week high of $2.07 on September 26.
With market participants expecting Bitcoin’s price to continue rising in the fourth quarter of 2024 and the development of layer 2 Bitcoin solutions gaining traction, Stacks is poised to establish itself as a dominant player in the layer 2 Bitcoin sector. However, it is important to note that this article does not contain investment advice, and readers should conduct their own research before making any investment decisions.