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This Cryptocurrency up 24% in 48 Hours, and There Are Exactly 2 Reasons for It

Wed, 06/07/2023 - 15:46
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Gamza Khanzadaev
Stacks (STX) up 24% in two days thanks to SEC and another major reason
This Cryptocurrency up 24% in 48 Hours, and There Are Exactly 2 Reasons for It
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In a surprising turn of events, Stacks token (STX) has soared by over 24% in the past two days, defying the market-wide slump. While other cryptocurrencies experienced double-digit declines, STX has emerged as one of the most profitable tokens, even among the largest by market capitalization.

STX to USD by CoinMarketCap

The remarkable price behavior of Stacks token can be attributed to two significant factors. Ironically, one of them is related to the SEC, whose recent actions have sent shockwaves through the crypto market.

STX stands out because its offering, conducted by Blockstab — the company behind Stacks — received SEC qualification under Regulation A+ in 2019. This historic event marked the first-ever SEC-approved token offering in the United States. As a result, STX appears almost immune to the regulatory purgatory that has plagued the broader market, although future developments remain uncertain.

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Another key factor contributing to the Stacks token's success lies in its niche market. Functioning as a Bitcoin layer for smart contracts, Stacks token has become a prominent beneficiary of the growing excitement surrounding Bitcoin-related activities, such as Ordinals and BRC-20 projects.

All in all, STX has managed to evade the regulatory pressures faced by other tokens and has established itself as an approved investment avenue for those seeking exposure to Bitcoin and its associated hype. However, while the surge in STX's price has been substantial, it remains uncertain how the future will unfold for the token in terms of regulatory developments and market dynamics.

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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.