⚡ Easily Trade – Apple, Microsoft, Tesla and Google Stocks – Open a FREE Account Here

      

Stacks (STX) Gains on Bitcoin DeFi Boom: Can It Maintain Momentum?

Stacks (STX) Gains on Bitcoin DeFi Boom: Can It Maintain Momentum?

Stacks (STX) is on a tear, surging over 22% in the past week. This rally coincides with growing excitement around Bitcoin decentralized finance (DeFi) and the potential for Stacks to play a key role in this emerging space.

 

BrokerReviewRegulatorsMin DepositWebsite
🥇Read ReviewASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSAUSD 100Visit Broker >>
🥈Read ReviewFMA, FSAUSD 50Visit Broker >>
🥉Read ReviewFSCA, CySEC, DFSA, FSA, CMAUSD 0Visit Broker >>
4Read ReviewCySEC, MISA, FSCAUSD 5Visit Broker >>
5Read ReviewFCA, CySEC, FSCA, SCBUSD 100Visit Broker >>
6Read ReviewFCA, FINMA, FSA, ASICUSD 0Visit Broker >>
7Read ReviewCySEC, FCA, FSA, FSCA, Labuan FSAUSD 100Visit Broker >>
8Read ReviewCBCS, CySEC, FCA, FSA, FSC, FSCA, CMAUSD 10Visit Broker >>
9Read ReviewASIC, CySEC, FSCA, CMAUSD 100Visit Broker >>
10Read ReviewIFSC, FSCA, ASIC, CySECUSD 1Visit Broker >>

Bitcoin DeFi: The Next Bull Run?

Bitcoin OG and Stacks supporter Dan Held believes layer-2 solutions like Stacks will unlock Bitcoin’s true potential, allowing for smart contracts, staking, and borrowing. He predicts this, combined with the upcoming Bitcoin halving and potential Fed interest rate cuts, could trigger a historic bull run for Bitcoin DeFi. Held sees Bitcoin eventually capturing a large share of the DeFi market due to its established user base and liquidity.

Stacks (STX): A Top Pick for Pantera Capital

Stacks’ appeal is echoed by Pantera Capital, a renowned cryptocurrency hedge fund. Analysts at Pantera highlight Stacks as a promising project for the next wave of market growth. They praise Stacks’ focus on fundamental strength, suitability for the market, strong leadership, and a sustainable economic model. Crucially, Stacks’ position as the only layer-2 smart contract solution working on Bitcoin today gives it a unique competitive advantage, according to Pantera.

Stacks Rides the Bitcoin DeFi Wave

Data from DeFiLlama shows the total value locked (TVL) on Stacks reaching an all-time high of $145.3 million as of March 4, 2024. This surge reflects growing investor confidence in the Stacks ecosystem.

Nakamoto Upgrade: A Catalyst for Continued Growth?

A recent Messari report revealed a staggering 3,386% increase in Stacks network revenue last quarter. The upcoming Nakamoto upgrade in April is another key catalyst. This upgrade promises faster transactions, reduced transaction fees, and enhanced security for the Stacks network.

STX/USD Technical Analysis

  • Short-Term: The recent price surge suggests strong momentum. STX is currently trading above resistance at $3.00. A break above $3.25 could signal a continuation of the uptrend towards $3.50. However, a pullback for consolidation is a possibility before further gains. Traders could look for support around $2/50-$3.00 for potential entry points.
  • Long-Term: The overall trend for STX is bullish, especially if Bitcoin DeFi continues to gain traction, the Nakamoto upgrade delivers as promised, and Stacks maintains its competitive advantage as the leading layer-2 solution for Bitcoin.
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Avatar
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
Related Articles