STX, the native token of the Stacks network, is the only cryptocurrency that has resisted the assault that has devastated the broader crypto market on February 28. The majority of currencies have been covered in red.
At the time of writing, STX was the leading gainer, up 40% among the top 100 cryptocurrencies tracked by Coingecko and CoinMarketCap.
STX was trading at $0.8634, up 0.5% from the previous day’s close. The token’s price has risen by 191% in the last 30 days, according to the most recent data. Monday marked a market capitalization of $1.1 billion for STX.
Stacks Riding Ordinals Popularity?
Since the Ordinals protocol went online on January 21 and allowed users to embed references to digital art into minor Bitcoin blockchain transactions, demand for the STX has skyrocketed.
Bitcoin non-fungible tokens, also known as Ordinals, are the newest development in cryptocurrency, attracting investor interest. The technology has effectively increased network usage, transaction volume, and block size, since more than 200,000 Ordinals have been added to the Bitcoin blockchain.
Muneeb Ali, co-founder of Stacks, recently acknowledged that the Ordinals mania and growing interest in protocols were not coincidental.
“What has been missing is that young and enthusiastic developer community that is actually building things and shipping stuff,” he said.
Bringing DeFi To Bitcoin & All That Buzz
Excitingly, Stacks’ emphasis on bringing DeFi to Bitcoin has added to the buzz surrounding Ordinals as investors anticipate the arrival of smart contracts on Bitcoin.
On February 27, the price of the project’s token increased by 25.0% in 24 hours to $0.9614, building on the token’s continuous run over the past week.
Despite these enormous gains, STX remains in the depths of a bear market. The token is down 77% from its all-time high of $3.39 in December 2021.
The Stacks blockchain employs the Proof-of-Transfer (PoX) consensus method and is a Layer 1 blockchain.
It enables users to validate Bitcoin transactions by retaining and staking the cryptocurrency. The user is allowed to mine Stacks blocks and earn STX tokens once BTC has been transferred.
Crypto total market cap at $1 trillion on the weekend chart | Chart: TradingView.com
STX Gets SEC Thumbs Up
A recently released investment strategy by North Rock Digital highlighted Stacks’ emphasis on decentralized finance (DeFi), its novel use of smart contracts, and its interoperability with Bitcoin as distinguishing characteristics among blockchain initiatives.
Stack augments Bitcoin’s functionality by introducing smart contracts and decentralized applications (dApps) to the Bitcoin blockchain. Since this was the case, it was impossible not to link the growth of Bitcoin Ordinals to the gains in STX.
STX is the first token whose offering has been approved by the US Securities and Exchange Commission.
-Featured image from ArtStation