The Ordinals Renaissance
STX's time to shine? Amid an Ordinals Renaissance on Bitcoin, transaction fees have surged to cycle highs and the mempool has gotten heavily congested. Users are getting pushed out towards Bitcoin’s L2s, and the Stacks network is a clear beneficiary of this trend, with STX up 14% on the day.
Much like an Ethereum L2, Stacks users enjoy lower transaction fees and higher throughput than users on the Bitcoin L1. Additionally, Stacks provides smart contract programmability not native to Bitcoin.
While Stacks is certainly not immune to transaction spam spawned by the Ordinals Renaissance, the chain has been able to handle the load resulting from STX20 inscription minting and remains uncongested at most times, in stark contrast to the Bitcoin L1 scene.
.@Stacks humming along as the definitive smart contract platform for #Bitcoin
— ◢ J◎e McCann 🧊 (@joemccann) December 18, 2023
Stacks contained 10,371 transactions in block 132,377, the most transactions ever in a block on Stacks, driven by STX20 inscription minting.$STXhttps://t.co/G35brnbMmx
Stacks will never replace Bitcoin, but the close technical proximity between the two networks could make STX a potential high-beta play on BTC as the deadline for spot ETF approval looms ever closer, another potential catalyzing factor that could be driving demand for the STX token.
Increasing adoption of Bitcoin, both the network and the asset, bodes well for STX holders, as the former will naturally drive users to Stacks and the latter will concentrate narrative fervor on the network.