Stacks Price Up By 15% – Time To Buy STX Coin?
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Stacks (STX) wants to make Bitcoin scalable like new-generation blockchain platforms, but could that be the only reason to buy STX?
Let’s dig right into the network to understand how it works and what its current price movement means for investors.
Stacks: Creating A Programmable Bitcoin Network
Stacks is a layer one blockchain protocol that indirectly enables smart contracts and decentralized applications (dapps) on the Bitcoin network. Even though it is not one of the largest crypto protocols, Stacks has attracted enough attention as several investors want to buy STX.
Founded initially as Blockstacks in 2013, Stacks is a layer-1 blockchain solution aiming to bring smart contracts and dapps to the Bitcoin network. In essence, it is planning to make Bitcoin programmable like several other crypto protocols.
Bitcoin was launched in 2009 by mysterious creator Satoshi Nakamoto as a peer-to-peer (P2P) blockchain network. The first cryptocurrency aims to facilitate the transfer of value in a decentralized manner, eliminating any intermediary party like big banks and the government.
Bitcoin has been largely successful in its original vision, but Nakamoto did not factor into the Bitcoin network the issue of smart contracts (self-executing lines of code) and dapps. This unintended flaw has seen many Bitcoin critics point out that Ethereum (which birthed both concepts) will ultimately remove Bitcoin from its perch as the world’s most valuable cryptocurrency in due time.
However, a Bitcoin-centric protocol wants to evolve the Bitcoin network while maintaining the crypto status quo.
Stacks blockchain is built on top of the Bitcoin network. It does not tamper with the protocol’s well-conserved proof-of-work (PoW) consensus algorithm and its security. Stacks blockchain enables several developers to build on one another’s apps to develop new features that are hard to come by.
Even though it operates on the popular PoW network, Stacks uses a separate consensus algorithm called proof-of-transfer (PoX), which allows the Bitcoin network and Stacks to communicate. The Stacks network normally contains the smart contracts layer, while the Bitcoin platform serves as the block finality and security layer.
Stacks uses the STX token to power its ecosystem. STX is used to execute smart contracts, process transactions, and register new digital assets on the Stacks blockchain.
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STX: Breaking The Bear Circle
If you are looking for a crypto asset to buy under $5, you should buy STX.
This is because STX is trading at $1.0278 and is up 15.37% in the last 24 hours. This massive rally reflects the protocol’s growing relevance in the heated energy discourse surrounding Bitcoin mining.
Meanwhile, a 15% increase is not a reflection of STX’s best performance so far this year.
The digital asset came into crypto prominence after it surged from its Jan. 1 price of $0.4303 to $2.5833 on Apr. 5. It soon dipped to $1.728 on Apr. 7 but rallied a week later to an all-time high (ATH) of $2.7305 in mid-April.
STX has since dipped to a mid-year low of $0.58 on Jun. 21 following the crypto market crash. Meanwhile, today’s rally has served as a buoy for investors to buy STX.
STX Technical And Fundamental Analysis
On the trading chart, STX is trading very close to the 20-day moving average (MA) support price of $1.0560. A continued rally could see it break the resistance level and seek support at $1.08 in the coming days. Its relative strength index (RSI) is also spiking, with the oscillator standing at 52.03.
Analysts are bullish on the digital token, and Wallet Investor is putting STX at $2.185 by the end of the year. A five-year forecast puts STX at $6.903.
Meanwhile, the Stacks blockchain is slowly expanding into the international market.
In a Medium blog post, the blockchain company announced its integration with South Korean e-commerce protocol Paycoin. According to the post, users will be able to pay with STX on Paycoin supported retail outlets.
Another integration with InfStones targets institutional clients. According to the press release, InfStones is launching Stacking to enable institutional clients and retail STX holders to enjoy Bitcoin rewards.
Aside this, InfStones will support Stacks Foundation in their mission to build an open-source do-it-yourself (DIY) Stacking pool manager meant to enable businesses to create and manage their Stacking pools effortlessly.
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