Stacks (STX) Leverages Bitcoin Ordinals Hype in 60% Surge

Stacks’ use of Bitcoin-compatible smart contracts has positioned it to take advantage of the hype surrounding Ordinals.

Man happy about his stacks investment stacking up with a grey chart on top of his head.

Stacks (STX), a smart contract protocol layer focused on creating DeFi apps on Bitcoin, is stacking up crypto investment funds as investors look to play the Bitcoin Ordinals narrative. 

Bitcoin NFTs, also known as Ordinals, are the newest development in crypto, piquing investor interest. With over 200,000 Ordinals inscribed onto the Bitcoin blockchain, the innovation has effectively spiked network usage, transaction count, and block size. 

Sponsored

Interestingly, Stacks’ (STX) focus on bringing DeFi to Bitcoin has added to the Ordinals hype as investors anticipate the dawn of smart contracts on Bitcoin. The project’s token continues to record massive price gains this year, picking up on last week’s rally, surging by 24% in 24 hours to $0.9614 on February 27th. 

Stacking Extra Ordinal Growth

Stacks’ STX token has been on a tremendous trajectory since Ordinals gained popularity. The project’s token is one of the market’s best-performing tokens this year, even when the broader market suffers from chops and low momentum. 

Recently, Stacks’ STX token price has skyrocketed by 60% to $0.9614 over a seven-day rolling period since 20th February, according to CoinMarketCap. The demand for the token has significantly surged since the launch of the Ordinals protocol on January 21st. 

Sponsored

Since January 21st, Stacks’ (STX) daily trading volume has skyrocketed from $4 million to $601 million – recording a 14,925% increase. Over the same period, the token’s market cap has surged from $370 million to $1.2 billion – gaining over 200%. 

Stacks’ (STX) use of Bitcoin-compatible smart contracts has positioned it to take advantage of the hype surrounding Ordinals. According to experts, the token could return impressive yields thanks to its association with Ordinals, but how closely are the two protocols related? 

Stacking Ordinals on Bitcoin

With over 200,000 Bitcoin Ordinals inscribed on the network and spending over $1.3 million in fees, there’s a lot of interest surrounding the new protocol, according to Dune analytics. The craze around Ordinals has increased the size of Bitcoin blocks, adding approximately 3.5 gigabytes of data to the network. 

Moreover, the protocol has encouraged developers to build on the network, one of which is Stacks (STX). The platform has 21 decentralized applications (DApps) focused on Bitcoin NFTs. However, only three mention Ordinals, including Gamma, a marketplace for Bitcoin NFTs. 

Gamma is the leading platform for Bitcoin Ordinals and NFTs. Interestingly, assets on the marketplace are priced in Stacks’ STX token. Stacks’ (STX) role as a means of payment for NFT transactions is one of the major reasons why the project’s token has shown great performance this year. 

Additionally, the project has also announced a scheduled upgrade on March 20th. The Stacks 2.1 upgrade will improve the platform’s connection with Bitcoin and add major improvements to the Layer-2 network. 

The upgrade will lay the groundwork for subnets and optimize network speeds and scalability. Stacks 2.1 will also roll out the new consensus protocol, “Stacking 2.0.” Users can lock up their tokens to secure the network and earn rewards. 

The upgrade announcement could have also played a significant role in last week’s rally, as the network looks to add significant improvements. 

On The Flipside

Why You Should Care

Ordinals on Bitcoin have led to a tangible effect on the network, similar to Ethereum during the DeFi boom. The hype has led to investors cycling new money into Bitcoin and Ordinal-narrative tokens like Stacks (STX), potentially resurging the bull run with newfound strength.

Find out more about Bitcoin Ordinals:

Bitcoin NFTs: What Makes BTC JPEGs so Extra-Ordinal?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.