coinedition.com
Stacks Network, a layer 2 protocol that runs on the Bitcoin blockchain, distinguished itself by sustaining the price rally of its native token while several crypto prices declined. In February 2023, contrary to the prevailing trend, Stacks Network’s STX gained up to 244%.
The year 2023 started with a bull run for most cryptocurrencies. Bitcoin led the rally by gaining 53.33% in the first six weeks of the new year. The price trend changed in the middle of February for most cryptocurrencies as they shed some accumulated gains. Bitcoin dropped by 10.00% from its local high, while Ethereum lost 10.41% during the same period.
Contrary to this trend, STX sustained its rally, gaining a further 244% on top of the gains made in January. According to Katie Talati, head of research at crypto asset-management firm Arca, STX’s rally links to the increased buying and trading of Ordinals in the past few weeks.
Ordinals are digital assets inscribed on a Satoshi. They are protocols used to send and receive Satoshis that carry data in the form of JPEGs, texts, audio, or videos. Ordinals provide the opportunity for users to create NFTs on the Bitcoin blockchain.
Stacks Network facilitates the trading of Ordinals by enabling the Bitcoin blockchain to scale. Running on top of the Bitcoin blockchain makes Stacks a salient protocol for Bitcoin users and makes STX a relevant token to BTC holders in the community. Therefore, while the market experienced a pullback, the increased interest in Ordinals implied that demand for STX increased.
As already noted, the price of STX climbed by 244% against many odds in February 2023. Whether it will sustain this trend remains to be seen as crypto users look forward to a dynamic end to an eventful first quarter of the year.