Today we will examine the popular altcoin of the week, Stacks.
What are Stacks?
Stacks is an open-source blockchain network that leverages the security and capital of Bitcoin for decentralized applications and smart contracts. The Stacks ecosystem is a collection of independent entities, developers, and community members working to build a user-owned internet on Bitcoin.
What are the Features of Stacks?
Stacks is the rebranded version of Blockstack that addresses utility and scalability issues affecting the Bitcoin network. Stack, which acts as layer-2 on the Bitcoin network, is known as a protocol that aims to make applications and systems on the network fully programmable and makes it user-oriented.
The feature that makes Stacks different from other layer-2 networks is that it uses the Proof of transfer algorithm. This algorithm, which stands for proof of transfer, allows miners to use and expand the powers of Bitcoin without changing Bitcoin itself.
Why Did Stacks Rise?
The Stacks project also has a native cryptocurrency called STX. Let’s take a look at why STX, which has gained a very good momentum in the last week, is on the rise.
Bitcoin layer-2 Stacks’ native token, STX, has surged over 50% with the implementation of the Ordinals protocol, which enables NFT generation on the Bitcoin blockchain.
The growing popularity of Ordinals-type NFTs is also reflected in Stacks’ overall network volume. According to data from DappRadar, trading volume on Gamma.io, the Stack-based NFT marketplace, has increased by more than 1000 percent for the past 30 days.
In addition, there are other important factors in the rise of the Stacks price. This increase in demand for the asset can be attributed to recently published whitepapers to make the Bitcoin network a more functional smart contract space. The first of these projects, consisting of two white papers, is sBTC, a non-trust bidirectional Bitcoin peg system. The other is the Bitcoin stabilization Nakamoto whitepaper, which is again not based on trust.
sBTC is the software that allows crypto assets to interact with the Bitcoin protocol faster, as the version introduced to complement Stacks 2.0. The Nakamoto version includes changes to the Stacks protocol to make the sBTC software work more reliably.
Stacks Price Analysis
Stacks, which is currently priced at 85 cents, has increased in value by more than 150 percent in the last week in the light of these updates and developments. The asset, which was at 60 cents at the beginning of the week, rose to 96 cents before falling to its current level.
So what are the levels to follow for Stacks price?
Continuing its price activity at 85 cents, Stacks will face the first resistance level in the 89 cent region if it continues to rise. If the asset manages to break this resistance and continues to rise, it will meet the next resistance level in the 93 cent region. In a possible bearish scenario, the first support level is in the 84 cent region, while the other support level is around 78 cents.
