Why Stacks (STX) is currently going through the roof
The cryptocurrency Stacks (STX) is currently going through the roof. The current winner of the week has once again recorded high profits. Behind the project’s rise is a general trend in the crypto market that sees Bitcoin at the center of recent growth.
Why Stacks (STX) is currently going through the roof
Stacks (STX) is currently going through the roof. The cryptocurrency belongs to a layer 2 that aims to promote the Bitcoin ecosystem with new functions. The developers of the project describe Stacks themselves as “Bitcoin layers for smart contracts”.
Although native functions of Bitcoin Script already allow simple scripts, they cannot hold a candle to the smart contracts of other blockchains such as Ethereum . Stacks was created to establish the largest cryptocurrency in the DeFi sector.
However, Stacks is not an entirely new development. The project started in October 2019 and is in the top 100 cryptocurrencies by market capitalization. Recently, the plant experienced extreme gains several times.
The reason for this is in particular a trend reversal on the crypto market. The trend is currently slightly away from Altcoins towards the market leader Bitcoin. This trend has intensified since the beginning of the year after the release of the Ordinals protocol for the Bitcoin blockchain in January.
As a result, there has been a strong NFT market for Bitcoin and, more recently, the ability to create fungible user-generated tokens . This in turn created stablecoins on Bitcoin.
Stacks price is the weekly winner of the top 100 cryptocurrencies during the current bullish mood. The investment has recorded a price increase of around 82 percent in the last seven days. At the time of going to press, the market value was USD 0.86. The cryptocurrency is in 40th place.
Stacks represents Bitcoin on the DeFi market
Stacks is one of several projects representing Bitcoin in the DeFi market. In addition to Layer 2, the Lightning Network based on payment channels is also represented there, which with Taproot Assets (formerly Taro) is intended to enable the issuance of fungible tokens such as stablecoins in particular.
So far, Stacks has already generated a volume of 28 million US dollars in the DeFi area. The TVL was primarily created by the DeFi platform Alex, which can serve as an exchange for crypto lending. In addition, users can make early investments in new ecosystem projects via a launchpad.
According to DefiLlama, Stacks is currently the most successful DeFi blockchain in the weekly trend with growth of around 50 percent. With a share of over 90 percent, Alex is currently clearly the largest protocol that accesses stacks.
Stacks uses its own programming language, Clarity , to enable complex smart contracts. When creating Clarity, they wanted to learn from problems that Ethereum experiences when using its Solidity programming language.
Compared to Ethereum, Bitcoin’s Smart Contract Layer 2 should therefore offer particularly high reliability and security.
The difference can be seen above all because Clarity is a “decidable” smart contract language. In reality, this results in the underlying code being stepped through as planned. If there is an error, there is no repetition.
As a result, the smart contract comes to an end after a certain sequence, which is why errors do not assume immense proportions. Since Clarity is not compiled to bytecode but interpreted in its original form, there are fewer weak points.
