The price of Stacks (STX) increases 195% after plans were revealed to bring DeFi to Bitcoin

Jul 22, 2021

Ethereum (ETH) currently leads the way in terms of the capacity of smart contracts and the sheer number of active projects on its network, but the pressure to base products on Bitcoin (BTC) is gaining traction among newbies. Supporters like Square CEO Jack Dorsey are leading efforts to bring decentralized funding (DeFi) to the Bitcoin network.

One project that aims to combine DeFi capabilities with the security of the Bitcoin network is Stacks (STX), a first-layer blockchain protocol designed to bring smart contracts and decentralized applications (dApps) into the network bring to.

Data from Cointelegraph Markets Pro and TradingView show that the price of STX has risen 195% since falling to $ 0.50 on June 22nd to $ 1.47 on July 11th, and now that Bitcoin is gone,% gain on 22nd of July.

Stack (STX) price up 195% after plans were revealed to bring DeFi to Bitcoin 7
STX / USDT 4 hour chart. Source: TradingView

Three reasons for STX’s recent strength are the release of the Clarity programming language, which brings smart contracts for Stacks 2.0 and Bitcoin, the ability for STX holders to set tokens for BTC rewards, and the introduction of DeFi and non-resolvable tokens ( NFTs) for the) Bitcoin network.

Smart contracts are coming to Bitcoin

The introduction of the Clarity programming language on Stacks was the main catalyst for the growth of the Stacks ecosystem as it enables the creation of smart contracts on the Bitcoin network.

Clarity claims to be a “resolvable language” which means that “you can tell for yourself from the code what the program is going to do”.

The main difference between Clarity and other smart contract languages ​​is the decidable language, which is not complete, and the fact that this language is interpreted and transmitted on the blockchain rather than being compiled to be both human readable and audible. “

The partnership between the two networks means popular areas like DeFi and NFT now have a way to work and be recorded on the Bitcoin network without worrying about slow transaction times and increased costs.

STX holders can earn BTC through staking

Stacks recently introduced STX staking for owners and allows them to earn BTC as a reward.

The Stacks network uses a new mining protocol called Proof-of-Delivery (PoX) that runs in parallel with Bitcoin and uses the BTC network as a trusted transmission medium for its block headers.

While most proof-of-stake networks offer staking rewards that are paid out in native tokens, members of the Stacks community can use their STX tokens to earn BTC at an average rate. The average is 10%.

Stack (STX) price up 195% after DeFi plans in Bitcoin 9 were announced

This represents one of the few ways in the crypto space where token holders can use their tokens and earn BTC as a reward.

connected: Crypto staking rewards and their unfair taxes in the US

DeFi and NFT come to Bitcoin

On July 10th, STX created and sold the first Bitcoin NFT from the Stacks blockchain.

The event is set to mark the beginning of a new era of smart contracts on Bitcoin, and additional optimistic news has revealed that USD Coin (USDC) is expanding to the Stacks network. This has led some experts to quote Bitcoin law It states that “successful experiments in cryptocurrencies will eventually come to Bitcoin”.

The advent of NFT and DeFi capabilities has also opened up new opportunities to leverage these popular sectors to take advantage of BTC, and this is likely to attract new entrants in the market.

As a result of these developments, the momentum for STX increased in July, which was reflected in increased price and 24-hour trading volume.

VORTECS ™ data from Cointelegraph Markets Pro began to see a bullish outlook for the STX on July 19, ahead of the recent price rally.

VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.

Stack (STX) price up 195% after plans were revealed to bring DeFi to Bitcoin 11
VORTECS ™ -Score (green) compared to the STX price. Source: Cointelegraph Markets Pro

As can be seen in the graphic above, the VORTECS ™ Score for STX rose into the green on July 19th and peaked at 70 after 34 hours before the price rose 42% over the next two days.

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