Will Bitcoin layer 2 protocol Stacks sustain 244% gains after STX defies crypto bloodbath?
- Bitcoin layer 2 protocol Stacks Network’s STX token rallied 244% in February despite the bloodbath in cryptocurrencies.
- STX price surge coincided with growing interest in Ordinal NFTs, inscriptions on Bitcoin blockchain’s mainnet.
- Stacks Network improves Bitcoin’s scalability and that makes STX relevant to discussions that started in the BTC community in November 2021.
Bitcoin, Ethereum and cryptocurrencies in the top ten witnessed a decline in February after January 2023’s euphoria. Bitcoin’s layer-2 scaling protocol Stacks Network bucked the trend and yielded 244% gains for holders. It remains to be seen whether STX can sustain its uptrend in March.
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Bitcoin layer 2 protocol Stacks defies market-wide bloodbath in February
Scaling has been a key concern in the Bitcoin community since the Taproot upgrade in November 2021. Layer-2 scaling solution Stacks Network resolves this concern and this makes STX relevant to BTC holders and the community.
In February 2023, while large market capitalization cryptocurrencies suffered a drop in prices, Stacks Network’s taken STX yielded 244% gains. Stacks connects to Bitcoin for security and enables decentralized applications and predictable smart contracts.
Interestingly, the massive STX price rally coincided with growing interest in Ordinal NFTs on Bitcoin mainnet. Ordinals Protocol allows users to send and receive Satoshis that carry optional extra data. This data can be text, JPEGs, audio or videos. The addition of such data to Satoshis is “inscription” and the end result is the creation of an NFT on the Bitcoin blockchain.
What makes STX relevant to the Bitcoin community?
Katie Talati, head of research at crypto asset-management firm Arca was quoted as saying:
More information has become available in the last few weeks in people buying and trading [Ordinals] more. A lot of people have been saying, well, if Ordinals do really well, this gives a reason for people to use the Bitcoin network, and therefore they'll have the need to use Stacks.
This makes Stacks Network’s STX token relevant for the Bitcoin community. It remains to be seen whether STX will sustain its gains in March 2023.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
