The price of Stacks (STX), a Bitcoin second-layer solution, has risen by almost 18% this week.
Stacks is up approximately 18% over the past 7 days, closing higher in the latest session.
According to data from CoinMarketCap, the price of Stacks (STX) is hovering around $2 per unit, marking new 2-year highs. The last time STX saw this price was in January 2022.
The native cryptocurrency of the second-layer or L2 network, which enables smart contracts on Bitcoin, is up roughly 780% over the past year, standing out as one of the fastest-growing digital assets in the crypto industry in 2023.
Source: CoinMarketCap
Currently, the market cap of Stacks (STX) is $2.870 billion, which positions it as the 30th most capitalized cryptocurrency in the market. This capitalization has seen a growth of 27% in the last few hours, driven by the rise in the price of STX. Likewise, the trading volume of the cryptocurrency grew by more than 120%, in relation to the trading volume on Monday, surpassing $826 million, at the time of writing this article.
The increase in the cryptocurrency trading volume indicates the interest of investors in the digital asset, which at the same time is strengthening the market activity of this cryptocurrency.
Source: CoinMarketCap
What drives the price of STX?
This week, Muneeb Ali, co-creator of Stacks, reported that a new group of miners who have connected to the network have started mining with two to three times more processing capacity than normal. This, according to Muneeb, has allowed a large number of transactions to be processed, decongesting the mempool, the temporary memory in which pending transactions are stored on the blockchain.
The increase in throughput and transaction processing capacity on Stacks appears to be the main cause of the rise in the price of STX.
The L2 network co-creator also highlighted that with the activation of Nakamoto, an upgrade focused on improving transaction speed, mitigating MEV and improving finality, the Stacks network will become up to 120 times more productive, which will likely have a positive impact on the price of the cryptocurrency.
In mid-2023, the price of STX experienced a significant increase of almost 50% per week, motivated by the popularity that Ordinals listings were experiencing on the Bitcoin blockchain. At that time, the price of STX rose to $0,59. However, since then to date, the cryptocurrency has gained approximately 240%.
What is Stacks (STX)?
Stacks is a second layer or Layer 2 network built on Bitcoin, which enables the development of the decentralized finance (DeFi) ecosystem on this blockchain, thanks to the possibility of deploying smart contracts and decentralized applications (DApps) on the network.
L2 was developed to bring greater innovation to the blockchain ecosystem by leveraging the inherent characteristics of the most robust and secure blockchain on the market.
Stacks aims to expand Bitcoin's capabilities and utility by introducing smart contract functionality to facilitate the development of new protocols and applications that can inherit the network's strengths, such as the security and integrity rooted in the chain, as well as the liquidity that moves within its digital ecosystem.
At press time, Bitcoin is trading at around $46.500, while its market cap exceeds $900.000 billion and its trading volume has reached $43.000 billion in the past 24 hours.
Continue reading: Stacks: Bitcoin could be the backbone of DeFi
IMPORTANT: The content of this article is for informational purposes only and, in no case, what is written here should be taken as investment advice or recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.
