The price of Stacks (STX), a popular altcoin project in Turkey and around the world, has been on the rise for a while. As of March, the cryptocurrency has increased by 25 percent compared to the previous day and has gained sixfold value since the beginning of the year. According to the data, STX has a market cap of over $1.7 billion and shows no signs of slowing down. So, what’s behind the altcoin’s rise? Here are the details…
Altcoin price jumps: Here’s why
cryptocoin.com As we have also reported, Stacks, which is one of the altcoins that attracts attention in Turkey, has been increasing recently. One reason for this rise in the altcoin’s popularity is that Stacks provides a smart contract layer for Bitcoin (BTC), which has long been seen as the gold standard in the cryptocurrency world. Stacks is an open source network for decentralized applications and smart contracts using the security of the Bitcoin Blockchain. This means that Bitcoin can be used for a variety of purposes beyond just payments, including decentralized finance (DeFi) applications.
As DeFi continues to grow in popularity, Stacks is attracting more and more investors. STX’s liquid staking protocol “ALEX Lab (ALEX)” rose by more than 30 percent compared to the previous day, and lending service “Arkadiko Finance (DIKO)” rose by 20 percent overall. According to experts, one of the most important advantages of Stacks is its scalability. While Bitcoin struggles with scalability issues, Stacks offers a complementary solution as the L2 layer. This has become particularly important with the rise of the NFT protocol Ordinals, which is struggling to meet scalability challenges. According to Stacks co-founder Muneeb Ali, solutions like Stacks will become increasingly important in the coming years.
Stacks TVL is around $35.4 million
As reported by DeFillama, the total value of assets (TVL) locked in the Stacks network is $35.4 million, which is smaller compared to the Ethereum ecosystem. However, this figure has increased nearly 5 times since the beginning of February 2023, when it was around $7 million. In addition, last week Stacks-based lending protocols and DEXs; TVL experienced double-digit growth.
To this end, Stacks is constantly improving its technology to better serve its users. In the upcoming version 2.1 update, Stacks introduces Stacking 2.0, which will allow incremental additions called “topping off”. According to experts, this development will increase its profitability and can have a positive impact on the return on capital of the network’s loan protocol. Additionally, version 2.1 improves interoperability between Stacks and Bitcoin. It allows Ordinals, the native asset of Bitcoin, to be sent to STX-based wallets such as Hiro and Xverse.
Stacks plans Nakamoto update
On the other hand, Stacks assets can be added directly to Bitcoin addresses. Thus, users and developers will be able to use Stacks applications with only one Bitcoin address. Going forward, Stacks is planning a bigger update called “Nakamoto” that will be implemented in the fourth quarter of 2023. It provides a market cap of 69 trillion yen and a use case for DeFi operations. It will also greatly increase the transmission speed of the Stacks Blockchain. Overall, Stacks is fast becoming a major player in the cryptocurrency world. Its innovative technology and focus on scalability and interoperability attract both investors and users.