Stacks (STX), the native cryptocurrency of the Stacks Network, a Bitcoin layer 2 solution, experienced a 25% surge on Wednesday, propelled by positive comments from well-known investor Tim Draper.
The uptick in the token’s value coincided with Draper expressing his enthusiasm for Stacks during a recent interview on the widely-watched YouTube channel CoinBureau. He highlighted his keen interest in projects dedicated to introducing “significant applications” to the Bitcoin ecosystem.
Draper, in reference to initiatives aiming to integrate more decentralized applications (dApps) with Bitcoin, remarked, “I think that’s a really interesting trend, and we’re thinking it’s going to go the way Microsoft did.”
Stacks operates as a layer 2 network with a specialized focus on integrating smart contracts—typically associated with platforms like Ethereum and Solana—into the Bitcoin ecosystem.
Diverging from other Bitcoin layer 2 networks and sidechains like Lightning and Liquid, the Stacks Network introduces its own native token. This departure from the norm has generated criticism from certain Bitcoin maximalists.
Renowned American venture capitalist Tim Draper, who has previously forecasted a $250,000 valuation for Bitcoin by 2025, seems to express optimism towards Stacks. This positive sentiment appears consistent with his overarching belief in the substantial potential of Bitcoin.
STX sees increased traction in 2023
Throughout the year, Stacks has experienced a noteworthy surge in prominence, particularly with the advent of Ordinals, a type of NFT (Non-Fungible Token) on the Bitcoin blockchain.
The total capital locked within the Stacks platform has witnessed a significant upswing, escalating from a modest $7 million at the onset of 2023 to surpass $57 million at the present time, as reported by data from the tracking site DefiLlama.
Simultaneously, the price of Stacks’ native token, STX, has undergone substantial growth. Commencing the year at $0.21, the token is currently trading at $1.49, marking its highest valuation since March 2022, according to data sourced from CoinGecko.
