The previous week has seen Stacks (STX), the token that powers a layer-1 blockchain solution that integrates smart contracts and decentralized apps (DApps) into Bitcoin (BTC), skyrocket as the Bitcoin Ordinal Inscription frenzy has at least one big advantage in the protocol.
The platform enables developers to build smart contracts for the Bitcoin network. Moreover, projects within the Stacks ecosystem are aimed at taking advantage of the present ordinals boom.
The most popular and perhaps most secure blockchain now in use—Bitcoin—serves as the base layer for the layer-1 blockchain network, which settles everything that occurs on the network.
To put it simply, Stacks functions very similarly to Ethereum with a connection to the Bitcoin blockchain via proof-of-transfer (PoX) consensus. As noted by Stacks,
“PoX uses the proof-of-work cryptocurrency of an established blockchain to secure a new blockchain.”
Ordinal inscriptions are like nonfungible tokens (NFTs). These can be permanently stored on the blockchain by being transcribed into one Satoshi, the smallest unit of currency in bitcoin. Ordinal’s official documentation, however, referred to the individual assets as “digital artifacts” rather than NFTs.
The price of the Stacks (STX) token is rising
The current market excitement around the Ordinals, non-fungible tokens (NFTs) based on bitcoin, that has attracted the attention of global crypto investors, has caused the price of Stacks (STX) to soar by over 190%, from about $0.58 to $0.96.
Long-term investors also appear to be turning very enthusiastic about the future prospects of the STX token, which will play an essential role in utilizing the security of the Bitcoin network to settle transactions.
With roughly $426 million in trading activity over the past 24 hours, the STX token is currently trading at $0.955. The Stacks coin, which is currently ranked #41 on CoinMarketCap, has increased by 28.43% over the past day and is the top gainer overall.
Despite the current uptick in price, STX is still 78% below its all-time high of $3.39 recorded in December 2021.
The coming together of NFTs and the Bitcoin network helps bring more security, transparency, traceability, and even a greater transaction volume to the Bitcoin network.
It has expanded the use cases for these currencies and rekindled interest in them. There were over 100,000 newly created Ordinal NFTs on the Bitcoin blockchain last week, according to reports.
