TLDR:
- Stacks (STX) token has seen a 30% price increase over the past week
- The Nakamoto network upgrade is scheduled for October 9th
- A new Bitcoin-pegged stablecoin called sBTC is being launched
- Smart contract deployments on Stacks reached an all-time high in August
- Institutional support is growing with Anchorage Digital now supporting Stacks
The Stacks (STX) token, native to the Bitcoin-focused layer-2 smart contract platform, has seen a significant price surge of approximately 30% over the past week.
This rally comes as the Stacks community prepares for two major developments: the upcoming Nakamoto network upgrade and the launch of a new Bitcoin-pegged stablecoin.
The Stacks Foundation has officially announced that the Nakamoto Upgrade will be activated on October 9th, coinciding with Bitcoin block number 864864.
This upgrade is expected to enhance decentralized finance (DeFi) capabilities on Bitcoin by increasing transaction speeds and introducing sBTC, a new Bitcoin-pegged token. The sBTC token aims to allow Bitcoin holders to participate in smart contracts and enable developers to build applications on the Bitcoin network.
Over $1 trillion in BTC liquidity has been idle—until now. 😴
sBTC is changing the game by making Bitcoin fully programmable for DeFi and dApps through Stacks.
Explore what sBTC is all about and how it will activate the Bitcoin economy.
🧵 ⬇️ pic.twitter.com/ljDP98PIse
— stacks.btc (@Stacks) September 24, 2024
In preparation for the upgrade, the Stacks community is hosting over 20 developer workshops worldwide. These events will feature lectures, live demonstrations, and technical challenges where participants can earn STX tokens. Additionally, both Solana and Aptos have announced integrations with sBTC, which will allow developers to incorporate the Bitcoin-backed asset into decentralized applications (DApps) on these platforms.
The upcoming developments have sparked increased interest in the Stacks ecosystem. In August, the number of smart contracts deployed on Stacks reached an all-time high of 1,400, representing a 30% month-over-month increase. DEX trading volume on the Stacks network has also seen a dramatic rise, increasing from $100 on September 17th to $31,480 on September 25th, according to data from DefiLlama.
The total value locked (TVL) in the Stacks network, a metric used to measure user interest and trust, has increased by 70% from $91.1 million on September 18th to $112.5 million at the time of writing. This significant capital infusion into the network’s DeFi ecosystem underscores growing investor confidence and active participation in Stacks-based applications.
Institutional interest in Stacks is also on the rise. Anchorage Digital, an institutional wallet provider, has announced support for Stacks, potentially opening doors for increased institutional investment and accelerated development of the platform.
The STX token’s price movement has closely followed Bitcoin’s recent recovery, with STX outpacing Bitcoin’s 7.5% increase since September 18th. The token reached an eight-week high of $2.07 on September 26th, mirroring Bitcoin’s rise to $65,800 on the same day.
Market analysts suggest that the combination of the upcoming Nakamoto upgrade, the launch of sBTC, and the overall positive sentiment surrounding Bitcoin could further establish Stacks as a dominant player in the layer-2 Bitcoin sector.
