Stacks, a Bitcoin layer-two network, sees token surge 50% following Ordinals trend
Bitcoin’s Stacks Network, a layer two network for smart contracts, has surged 50% after the recent arrival of the Ordinals protocol.
Stacks network’s aim and STX rise
Stacks network aims to establish the world’s biggest and oldest programmable platform. It draws motivation from a dominant feature of Ethereum and competitors like Solana, which has the most global NFT and DeFi activity. The main focus of STX is to make Bitcoin fully programmable.
The network stores its data on a separate ledger outside the Bitcoin blockchain. It allows developers to custom applications similar to those on Ethereum and Solana. Moreover, STX was the first token to be qualified by the U.S. Securities and Exchanges Commission (SEC). Therefore, Stack miners and participants are motivated by this sense of security.
Thanks to the Ordinals’ rising popularity, STX activity has increased by more than 1,000% in trading volume over the last 30 days. In the past 24 hours, the token has risen by almost 50%, reaching a 125% month-date gain, while bitcoin rose only 6% this month.
The arrival of the Ordinals protocol
Over the past month, Bitcoin has surged to its highest level and outperformed every other crypto asset. Bitcoin recently released the Ordinal’s most recent version into its mainnet. This move created bitcoin-based NFTs (non-fungible tokens), STX.
The Ordinals protocol enables users to inscribe references to digital art into small transactions on the Bitcoin blockchain, thus unleashing a new narrative of NFTs and smart contracts. However, Ordinal’s project has triggered worry and concern among small-block supporters.
In the past week, the number of newly created Ordinals or NFTs inscribed into Satoshis on the blockchain is more than 100,000, leading to network congestion.
The co-founder of Stacks, Per Muneeb Ali, was optimistic about the growing popularity of Ordinals. In a tweet, Ali said that Ordinals on Bitcoin L1 complement Bitcoin NFTs on L2 like STX. he added that Ordinals have a natural limit on the L1 scale while L2 provides a clear scalability path.
Early this month, Gamma.io launched a no-code platform for NFTs through Ordinals, allowing users to create inscriptions without writing any code or running a full Bitcoin node. Some bitcoin wallets like Xverse have also embraced and supported Ordinals protocol online.