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Nowadays, achieving the slightest percentage gain amid the crypto market-wide reproach seems like a noble fit. The fear in the market has caused a rise in volatility with strained investor sentiment, making it nearly impossible for digital coins to raise their head.
The downturn is evident with the Fear & Greed Index reading 48, Bitcoin’s month-to-date loss, andEthereum price decline over the past weeks. No one expected a minion coin like Stacks (STX) to beat the top cryptos with over 24% gains over the past two weeks.
Stacks Recent Price Action Amid Eroding Gains In The Crypto Market
Although STX didn’t escape the ongoing downtrend, it has somehow defiled the bearish trend by exercising massive rallies here and there. For example, on February 28, STX price gained 16.5% in 24 hours, closing the day at $0.915630. Its price rallied again on March 2 by 11.4%, adding $0.101069 to its past-day price.
However, it traded at losses consecutively from March 3-5 before witnessing today’s gains. Over the past 30 days, Stacks has recorded a 142% price surge, miles ahead of other coins’ monthly performances.
However, with the 5.9% 7-day price decline, STX is underperforming the global cryptocurrency market, which is only down by 4.90% over the past seven days. But it is outperforming similar Smart Contract platform cryptocurrencies, whose prices have declined 6.4%.
Stacks Observes Uptick In On-chain Activity
Cryptocurrencies, including Bitcoin, don’t often rise unaided. Their performances typically move under the influence of one or two factors, asides from investor sentiments and overall market macroeconomic condition. In STX’s case, some ecosystem improvements and trends could be responsible for its price actions.
One possible factor behind the STX price pump could be the steady growth of NFT network activity on the Stacks blockchain. For instance, the recent hype around Ordinals BTC NFTs assisted in pushing the STX token by over 130% in a day.
Aside from the increase in token price, Stacks’ on-chain data revealed an uptick in network activity as investors seek more exposure to the Bitcoin NFTs. In February alone, the Stacks network processed 3.36 million transactions, a 223% increase compared to 1.13 million recorded in January.
Related Reading: Ethereum Price Close Below $1,540 Could Spark Larger Degree Decline
At present, Bitcoin-backed NFT sales have increased massively. For example, the Megapont Ape Club NFT has surged 329.40%, Mutant Monkeys increased by 172.9%, and Bitcoin Birds surged 189,500% since November last year.
Stacks Network’s Mempool also saw increased transactions during the same period, indicating a rise in network demand. Mempool is a queue of pending transactions for storing new blockchain transactions before validation.
Stack is a layer-1 blockchain that allows the building and deploying of Smart Contracts on Bitcoin. Integrating decentralized finance (DeFi) use cases into Bitcoin has been Stacks blockchain’s unique advantage over other similar Smart Contract platforms. The DeFi use cases have been scaling Stacks growth as users utilize them while leveraging Bitcoin’s robust security and stability.