Popular Layer 2 Network Spikes after Investor’s Supporting Comments
The native token of the Stacks Network, STX, rallied significantly following supportive comments from venture capitalist Tim Draper. In an interview with CoinBureau, Draper expressed interest in projects integrating with Bitcoin, comparing the trend to Microsoft’s growth. Stacks is a Bitcoin layer 2 solution offering smart contracts and its own native token.
What is Stacks?
Stacks is a Bitcoin layer 2 network that offers smart contract functionality and decentralized applications (DApps). This allows developers to build applications on Bitcoin in a similar way to Ethereum. The Stacks network has its own native token, STX, which users need to pay transaction fees and interact with DApps.
Draper’s Endorsement Drives Price Surge
In the interview, Tim Draper compared the Stacks network integrating applications with Bitcoin to Microsoft building on top of DOS. This led to a 25% rally in the STX token, lifting the price to its highest level since March 2022. Draper is known for his bullish $250,000 Bitcoin prediction by 2025, indicating he sees potential in the Stacks network.
Growth in Users and Capital
The emergence of Ordinals NFT collections on Bitcoin has drawn more attention to platforms like Stacks. Capital locked on the network has increased from $7 million to over $57 million in 2023, while the STX token has surged from $0.21 to $1.49.