STX the native token of layer-2 Bitcoin network Stacks, has seen a remarkable surge in its market value, rising nearly 25% on Monday, January 8. At the time of this report, STX trades at a notable two dollars, a peak not observed since January 7, 2022. Adding to this, the cryptocurrency’s trading volume has escalated by 172% in the last day, reaching a substantial USD 755 million in STX transactions.
Technical Developments Propel Stacks Forward
The principal factor behind Stacks’ recent momentum is linked to significant technical advancements within the network. Key to this development is the enhanced transaction processing capability of the network’s miners. Muneeb Ali, the Pakistani-American co-creator of Stacks, noted that miners have doubled, or in some cases, tripled their processing capacity.
This is attributed to a software update in the Stacks network miners, leading to a significant reduction in mempool congestion. This update, expected to “increase processing by 100 to 120 times,” is anticipated to go live in April, coinciding with the release of the Nakamoto update.
Nakamoto Update and sBTC Integration: A Game Changer
The Nakamoto update is viewed as a precursor to the launch of sBTC, a token facilitating direct transfers between the Bitcoin main network and its second layers. Currently in testing on the Papaya testnet, sBTC represents a crucial technical milestone in Stacks’ roadmap.
Rising Liquidity in STX Staking
Stacks’ ability to enable smart contract creation on Bitcoin has led to the rise of liquid staking protocols. StackingDAO, a notable player in this space, offers liquid staking where users can earn interest by depositing their STX and receive a synthetic token (stSTX). This allows them continuous access to their funds. Recently, StackingDAO announced via their X account (formerly Twitter) that the stSTX-STX liquidity pool on the Bitflow Finance decentralized exchange has reached USD 2 million. Furthermore, they plan to enable swaps for all users next week, signifying growing interest in the cryptocurrency and its network.
With these advancements, Stacks promises more exciting developments in the first half of 2024, fostering increased interest and investment in the cryptocurrency sector.