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STX, the native asset of the Stacks blockchain, suddenly gained nearly 17% even though the bulk of cryptocurrencies were trading in losses.
At the time of writing, STX was up 16.84% in the last 24 hours to $0.8144. The crypto asset is up 18.38% in the last seven days. Its trading volume has shot up 488% in the last 24 hours as traders jumped on the recent market volatility.
Stacks, a Bitcoin layer for smart contracts that enables smart contracts and decentralized applications to use Bitcoin as an asset and settle transactions on the Bitcoin blockchain, is gaining attention in the wake of recent Bitcoin network congestion.
According to Glassnode, Bitcoin is experiencing extremely high demand for block space, driven by BRC-20 tokens utilizing text-based inscriptions and ordinals.
The unusual network congestion saw Binance pausing BTC withdrawals twice. Though the situation has been contained, Binance says it is now working on enabling BTC Lightning Network withdrawals to prevent a reccurrence.
Muneeb, co-creator of Stacks, is optimistic that growing BTC network demand presents an opportunity for Bitcoin Layer 2 platforms: "Bitcoin fees just hit a new record. Up 500x from just a few months ago.officially marks the start of the arms race to build the best Bitcoin L2s. Lightning, Stacks, and Rootstock have a head start. Time to build."
Bitcoin fees just hit a new record. Up 500x from just a few months ago.
— muneeb.btc (@muneeb) May 7, 2023
Officially marks the start of the arms race to build the best Bitcoin L2s.
Lightning, Stacks, and Rootstock have a head start. Time to build 🫡
Stacks is attempting to improve the expressive smart contract capabilities of the Bitcoin network by utilizing Layer 2 technology.
The growing use cases and implementations of these technologies, such as micropayments and decentralized finance, could be advantageous for the Bitcoin network. In the end, these new Bitcoin capabilities might unlock potential capital worth hundreds of billions of dollars.
Binance had to pause BTC withdrawals twice due to unprecedented network congestion. Although the problem has been resolved, Binance claims that it was trying to make BTC Lightning Network withdrawals possible to avoid a repeat of the scenario.
Stacks is attempting to improve the expressive smart contract capabilities of the Bitcoin network by utilizing Layer 2 technology.
The growing use cases and implementations of these technologies, such as micropayments and decentralized finance, could be advantageous for the Bitcoin network. In the end, these new Bitcoin capabilities might unlock potential capital worth hundreds of billions of dollars.