STX, the native token of the Layer 2 Bitcoin stack network, is on the rise with the recent arrival of the Ordinals protocol opening a new story of NFTs and smart contracts on the Bitcoin blockchain.
Stacks Network is a Bitcoin layer 2 for smart contracts, focused on building the world’s largest and oldest programmable blockchain – a feature that surpasses that of Ethereum and its competitors such as Solana. , the latter now accounts for the majority of global DeFi and NFT activity.
Stacks has its own ledger to store data outside of the bitcoin blockchain, allowing developers to build similar applications on ethereum and Solana. STX is the first token to be sold under SEC approval to incentivize Stacks miners and participants in the proposed Stacks Bitcoin (sBTC) system, which aims to make Bitcoin fully programmable.
The token has rallied more than 50% in the past 24 hours to nearly $0.60, a 125% month-to-month gain. Data showed prices rose as high as $0.84 earlier on Monday, also the highest level since May. Meanwhile, market leader BTC is up just 6% for the month.
The out-of-the-box move comes as the crypto community goes wild with Ordinals, which launched on Jan. 21 and allows users to sculpt digital artwork references into small transactions on the bitcoin blockchain. In other words, Ordinals are like drawing artwork directly on satoshi (sats – the lowest denomination of Bitcoin), while NFTs on Ethereum are like certificates of authenticity from creators, separate from ETH.
The number of newly created ordinals, or NFTs, etched directly into Satoshi Nakamoto on Bitcoin passed the 100,000 mark last week, causing network congestion on the Bitcoin blockchain.
According to Stacks co-founder Muneeb Ali, the growing popularity of Ordinals bodes well for layer 2 solutions.
“Ordinals on Layer 1 Bitcoin complement NFT Bitcoins on layers like Stacks. Ordinals have a natural limit on Layer 1 scaling, and Layer 2 provides a clear scaling path. Like Xverse & Hiro wallets are the first two wallets to be released or run on Ordinals,” Ali said. tweet on Monday.
After Ordinals became widely known, NFT activity on Stacks increased. Data from DappRadar shows that Gamma.io, the NFT bitcoin marketplace on Stack, has seen a more than 1,000% increase in transaction volume over the past 30 days. Meanwhile, Megapont saw a 125% increase in transaction volume. According to Ali, there is an active community of artists and creators on Stacks, and people have minted 650,000 NFT bitcoins on this layer 2 solution.
“NFT orders on the Bitcoin blockchain have been very successful, leading to a general Bitcoin NFT craze. Stacks benefits from this because it is layer 2, enabling smart contracts built on top of the Bitcoin network. Minting new NFT bitcoins on Stacks at a lower cost and higher speed,” said CK Cheung, an investment analyst at DeFiance Capital.
Bitcoin-focused Web 3 wallet Xverse rolled out support for Ordinals last week notify Official.Meanwhile, the Hiro wallet has more Backing up the inscription on his testnet, Ali describes the wallet as Bitcoin’s Metamask.
In early February, Gamma.io launched a no-code creation platform using Ordinals to create NFTs on native Bitcoin, opening the door for users to create inscriptions without running a full Bitcoin node or writing any code. Gamma’s new launch event basically makes Ordinals more accessible to everyone.
“Ordinal numbers (inscriptions) are similar to NFTs, digital assets recorded on bitcoin (satoshis) minimums. The app is now being developed for NFTs open up use cases and merge them with the Bitcoin network security layer. ” show The upcoming “Building on Bitcoin Hackathon” is an important event to watch in the short term.
The hackathon, scheduled to run from February 24 to March 7, asked participants to build smart contracts using Clarity, a programming language for writing smart contracts on the Stacks 2.0 blockchain.
“This virtual hackathon is getting a lot of attention because Stacks uses Clarity — a programming language for writing smart contracts that is easier to learn than Solidity. Building smart contracts without too much technical knowledge.”
Based on all of this, STX could end up being a safe haven, said Dubai-based analyst and trader Reetika Malik.
“STX is also one of the rare SEC-approved tokens. So, an SEC-approved token is also a good thing for the market during uncertain times when regulators are keeping a close eye on many crypto companies.”
- NFT sales increased by over 43% in the past week
- Bitcoin Miner Made Nearly $600,000 Thanks to NFT Ordinals
- Nearly 30,000 ETH Burned Since Merger – Will Prices Rise?
According to Coindesk