Stacks is a blockchain solution built on the Bitcoin network, focusing on smart contracts and decentralized application development. It can address privacy and security concerns by utilizing the secure Bitcoin network.
Stacks aims to create a decentralized Internet by developing its smart contracts ecosystem, with the goal of becoming the next generation's decentralized computing platform. It serves as the application layer of the Internet, a role currently held by major companies such as Google and Facebook.
Stacks' primary objective is to create a platform that prioritizes privacy, allowing buyers to gain complete control over their data. The platform has already gained traction, with tens of thousands of active users and over a million buyers participating in its ecosystem. Within the cryptocurrency community, Stacks is becoming increasingly popular.
The influence of Bitcoin on STX price
Despite being a blockchain-based platform, Stacks relies on the Bitcoin blockchain to ensure secure transactions. Moreover, the Stacks STX coin, which is the platform's native currency, is backed by BTC. By adding smart contract functionality and privacy features to BTC without making changes to the blockchain, Stacks is able to enhance the capabilities of BTC.
Casey Rodarmor, an ex-Bitcoin developer, recently launched a new project called Ordinals, which has sparked a surge of interest in NFTs on the Bitcoin network. This development has been controversial within the Bitcoin community, as NFTs require a considerable amount of block space, which can result in higher transaction fees and reduce accessibility to Bitcoin's layer one. As a result, many are concerned about the potential impact on Bitcoin's scalability. The question remains, with the growing popularity of Bitcoin-based NFTs, how much higher can STX (Stacks) rise?
Stacks (STX) is gaining a wave of popularity on Bitcoin's NFT fever
Stacks serve as a "companion chain" to Bitcoin, allowing for the creation of smart contracts in a somewhat compatible way with Bitcoin's main chain. The recent surge in interest surrounding NFTs has reignited interest in projects that expand upon Bitcoin's functionality.
Ordinals have catalyzed a cultural shift in #Bitcoin that will work to $STX's benefit. For those that want more programmable uses of $BTC, applications built on top of @stacks will provide what they seek. https://t.co/icPTUGrMFQ— Chris Burniske (@cburniske) February 26, 2023
One of Stacks' unique features as a smart contract platform is that it enables users of Bitcoin to utilize smart contracts while also receiving similar security guarantees as those provided by Bitcoin. This sets Stacks apart from other smart contract platforms, making it an appealing choice for individuals who value the Bitcoin network's security and reliability.
Where is the STX price headed from here?
Several analysts believe that the price of STX has ample growth potential, especially considering its fully diluted market cap is only around $1.5 billion.
When compared to other leading blockchains with Turing complete capabilities, STX appears undervalued. However, it is essential to note that there is yet to be a thriving ecosystem of decentralized applications (dApps) on the platform, especially when compared to similarly-sized alternatives compatible with the Ethereum Virtual Machine (EVM).
STX's price has surged almost four times since the beginning of the month. The market is currently showing bullish momentum, and STX has been one of the best-performing cryptos over the past few weeks.
As the bull market gains strength, STX may continue to prosper in the future, making it an excellent opportunity to take advantage of the following market uptrend.
The Tech Behind Stacks
Blockstack employs a unique consensus mechanism known as Proof of Transfer (PoX), which involves two parties: miners and stackers. Unlike in the Bitcoin ecosystem, miners don't need to mine tokens to participate in the network. Instead, they commit their Bitcoin tokens to the Stacks blockchain, allowing them to mine a block and earn Stacks STX tokens.
Miners are chosen randomly, and the probability of being selected to mine the next block depends on the amount of BTC tokens they have staked relative to the total number of tokens committed by all miners.
If stacking BTC becomes a profitable option for miners, there is likely to be an increase in demand for the Stacks token, as stacking provides an opportunity to mine the token. To become a staker on the Stacks blockchain, miners must hold at least 90,000 Stacks STX tokens, which currently cost around $250k based on the value of the STX coin at about $2. Binance now has the highest transaction volume for STX/USDT, accounting for almost 17% of the total volume.
Stacks STX has demonstrated a tendency to outperform its competitors. According to technical analysis, Stacks's price action is similar to that of Bitcoin over the past two years. The trend is likely to break out of its current consolidation levels, and sentiment towards STX has been positive since the launch of Stacks 2.0.
The road ahead
Analysts often compare Stacks' long-term price to other technological advancements and trends to predict Stacks' long-term price. Apart from sentiment, several factors can impact the price of cryptocurrencies.
But, as of now, things are looking suitable for STX, with crypto analysts even recommending it. But, of course, it's essential to take everything with a pinch of salt, especially when it comes to the crypto market. So, be cautious.
Stacks token has been available for trade since October 2019, but there hasn't been any significant price movement until recently. In 2021, the price of Stacks (STX) reached a new high of a little over $2 after its renaming, and it is currently attempting to surpass that level.
According to Stacks' price forecast and technical analysis, the crypto has excellent potential to yield high returns from a long-term investment. Analysts predict that the price of STX will reach around a solid $2 mark, with an average trading price of around $2-$3 by 2023.