Bitcoin L2 Stacks (STX) has ripped nearly 50% this month to set a new cycle high! What catalysts are propelling its rise?
As a Bitcoin beta play, STX has benefitted from positive spot BTC ETF developments, with outflows from these instruments peaking on January 22, a date that marks the bottom for both BTC and STX.
The two tokens gained steam into the end of January as ETF outflows tapered and have exploded since February 5 as inflows began to accelerate.
Further bolstering STX price is the impending Nakamoto upgrade, which developers aim to deploy to mainnet around the same time as the halving in mid-April of this year!
Nakamoto will remove Stack’s limitations of Bitcoin’s block times on settlement – reducing its block times from many minutes to a few seconds, and implements sBTC, which creates a trustless two-way BTC peg system that is natively integrated with Stacks's consensus.
User activity has exploded on Stacks, even in its primitive pre-Nakamoto state, and STX looks primed for continuation into the year should users flow onto the chain when Stacks upgrades itself into a competitive alternative to the Ethereum L2s.
The fundamentals support our conviction
— Cosmo Jiang (@cosmo_jiang) February 1, 2024
Users are already clamoring to use STX more
Imagine what happens post Nakomoto upgrade in April when the chain is cheaper, more secure, and processes blocks ~200x faster 🏎️ pic.twitter.com/Iuk2Zldn3g