Stacks (STX) has garnered significant attention in the cryptocurrency industry as it emerges as a leading altcoin contender. With an impressive performance surpassing all top 100 tokens, except for Dymension (DYM), Stacks has witnessed a remarkable surge in the past 24 hours, catapulting its value well above the $2 mark and inching closer to its all-time high (ATH) of $2.492.
This surge can be attributed to various factors, including its positioning as a Bitcoin layer for smart contracts, the recent surge in Bitcoin’s price, and the token’s adoption and growth rate.
Stacks Climbs The Market Cap Rankings
As outlined in the project’s white paper, Stacks serves as a Bitcoin layer for smart contracts, enabling trustless utilization of Bitcoin as an asset in smart contracts and facilitating transaction settlements on the Bitcoin blockchain.
The recent surge in Bitcoin’s price over the past few weeks has also acted as a catalyst for Stacks’ price surge. Currently trading at $2,156, Stacks has experienced a significant recovery from its low of $1,241 during a market downturn that bottomed on January 23.
Notably, this recovery coincided with Bitcoin’s price rebound from $38,500 to $43,000, highlighting the correlation between the two assets.
Market expert Trover.btc, known on X (formerly Twitter), has noted Stacks’ impressive ascent in the market cap rankings. From being ranked around 60, Stacks has climbed to the 34th position within a year, surpassing well-known projects.
With the Bitcoin Layer 2 narrative gaining prominence and Layer 1 network fees reaching all-time highs, expectations are high for Stacks to enter the top 20 rankings around the halving, according to Trevor.btc.
STX Sets All-Time High Total Value Locked
A key metric to consider is its market capitalization (fully diluted) to gauge Stacks’ adoption and growth rate. According to Token Terminal data, Stacks’ market cap has experienced a notable surge of 187% in the past 90 days and an impressive increase of over 527% year-to-date, aligning with the token’s price surge.
Moreover, data from on-chain analytics aggregator DefiLlama reveals that Stacks’ total value locked (TVL) has reached an all-time high of $70.41 million.
This represents a significant increase of over 400% in just four months, highlighting the growing confidence and demand for Stacks within the decentralized finance (DeFi) ecosystem.
As the demand and interest in the protocol and its native token continue to grow, whether Stacks will surpass its previous all-time high or experience a correction remains to be seen.
The notable correlation between STX and BTC suggests that Bitcoin’s retracement from its current two-year high could also impact the price of STX.
However, the token has significant interest, as reflected in the highlighted metrics above. With the anticipated bull run gaining momentum leading up to the Bitcoin halving event, STX has the potential to reach even higher levels and climb the crypto rankings within the industry.
Observing how the STX price reacts in the coming days and weeks will be interesting. While uncertainties exist, the token’s current high level of interest suggests a positive outlook for its future performance.
Featured image from Shutterstock, chart from TradingView.com
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