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Stacks (STX) up 20% Following Bitcoin NFT Hype, Here's Main Reason Why

Mon, 02/27/2023 - 11:14
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Gamza Khanzadaev
Stacks (STX) keeps surging in price following Bitcoin Ordinals NFT hype amid bearish market pivot
Stacks (STX) up 20% Following Bitcoin NFT Hype, Here's Main Reason Why
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The price of STX, Stacks' native token, is up more than 20% in today's trading session, despite most other crypto assets' quotations turning red. Since the beginning of February, however, STX has risen by more than 240%, reaching $0.95 per token and breaking into the top 50 of CoinMarketCap's ranking of the largest cryptocurrencies by market cap.

STX to USD by CoinMarketCap

Key Reason Why Bitcoin (BTC) Just Dropped to $23,000

Bitcoin NFT revolution: Ordinals protocol and Stacks (STX)

The rise of Stacks (STX) is related to the boom in NFT on Bitcoin, which emerged in late January with the launch of the Ordinals protocol. Ordinals made it possible to manage, buy, store and transfer NFTs on the Bitcoin blockchain, which before the launch of the protocol was mostly done on Ethereum, Solana and other chains. With the advent of the protocol, activity on the BTC network increased significantly, transaction fees rose and so did the income of miners.

Here's What Makes Bitcoin (BTC) NFTs Ordinals Different

Stacks, in turn, is a Layer 2 solution for Bitcoin that enables blockchain to be more programmable and significantly expands its capabilities by leveraging the functionality of smart contracts. The project was one of the beneficiaries of this NFT revolution in Bitcoin, with STX surpassing the billion-dollar capitalization mark. Interestingly, STX is the first token whose offering has been qualified by the SEC, which is especially relevant in light of recent events.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.