STX, the native asset of the Stacks blockchain, has recently gained nearly 17% even though the majority of the cryptocurrency market is trading in slumps. This surprising surge in STX’s price encouraged traders to invest in the asset and propel it to a 488% increase in 24-hour trading volume. This increase in the trading volume happened in the wake of the recent Bitcoin network congestion where the demand for block space grew significantly due to the use of Bitcoin for text-based inscriptions and ordinals.

The network congestion eventprompted Muneeb, the co-creator of Stacks, to comment on the possibility of an “arms race” of Bitcoin Layer 2 platforms, citing Lightning, Stacks, and Rootstock as the ones having a head start. His observation was that the spike in Bitcoin fees represents an opportunity for these Layer 2 platforms to take off.

Stacks is hoping to increase the expressive smart contract capabilities of Bitcoin through their Layer 2 technology and associated use cases, such as micropayments and decentralized finance. This new approach to Bitcoin technology gives it the potential to unlock immense capital opportunities worth roughly hundreds of billions of dollars.



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