🌎 Stacks Surges with Nakamoto Upgrade and sBTC DeFi Integration

Stacks, a Bitcoin layer-2 solution, is currently gaining attention due to its latest developments, indicating significant long-term growth potential.

Nakamoto Upgrade Boosts Network Activity

Following the recent Nakamoto upgrade on October 29, 2024, which promises faster transactions and greater scalability for Stacks, the network experienced a surge in activity. According to data, Stacks’ active addresses grew by 97%, and transactions rose by 94%. This upgrade also sets the stage for the upcoming sBTC release, a feature that will allow smart contracts anchored on Bitcoin.

sBTC and DeFi Integration

The introduction of sBTC aims to address Bitcoin’s previous limitations in the decentralized finance (DeFi) space by enabling DeFi functions on the network. This integration could position Stacks as a significant player in Bitcoin’s expanding DeFi sector, which has already seen substantial growth in 2024.

Comparison with Other Bitcoin L2 Solutions

Despite a notable rise this year, Stacks has not matched the growth of other Bitcoin L2 solutions in terms of total value locked (TVL). For instance, Core’s TVL has increased at a faster rate, while emerging platforms like Merlin Chain and Bitlayer have seen more rapid gains.

STX Price Action

Analysts report that STX has shown promising signs following the Nakamoto upgrade. The token’s value recently increased by 11%, reaching a resistance level that has lasted for a month. Despite some fluctuations in momentum on the four-hour chart, indicating potential near-term corrections to support levels at $0.75 and $0.70, the weekly indicators present more bullish signs.

Currently, STX is down 6.69% over the past 24 hours and is trading at $1.71. This correction follows a recent spike to $1.9 on October 29, coinciding with a broader market retracement. Stacks is also down 6.79% this October.

MACD Bullish Crossover and Market Projections

Both STX and BTC have recently formed a MACD bullish crossover, a signal that often triggers prolonged rallies. STX has a high price correlation with Bitcoin. However, due to its relatively small market size, STX often experiences greater price swings, typically five to six times more. This trend was evident during the first phase of the ongoing bull run, as BTC rallied 172%, while STX spiked by 739% within the same timeframe.

With Bitcoin projected to reach $200,000, if STX repeats this pattern, it could experience a significant uptrend. Should a rebound gain momentum, its first major resistance level would come in at the $2.033 mark.