Stacks, the biggest Bitcoin layer-2 network, will be in the spotlight this week as the rollout of the Nakamoto upgrade starts.
Stacks (STX) token was trading at $1.80 on Monday, Aug. 26, up by 68% from its lowest level in August.
The token will be in focus as developers begin rolling out the Nakamoto upgrade, the most significant event in the platform’s history.
According to a recent X post by the developers, this upgrade is expected to be a game-changer for the network. It will reduce the average transaction time from 10 minutes to just seconds, enabling new use cases such as minting liquid stacking tokens, depositing them into Decentralized Finance (DeFi) applications, and borrowing against liquidity.
The Nakamoto upgrade will also pave the way for the upcoming sBTC, an asset pegged 1:1 to Bitcoin (BTC). This will simplify the use of Bitcoin in DeFi, non-fungible tokens (NFTs), and gaming, differentiating it from wrapped Bitcoin (wBTC), which is entrusted to a single custodian. Unlike wBTC, sBTC will be decentralized, offering features like censorship resistance, cost efficiency, and high security.
Once the upgrade process is complete, developers anticipate that it will attract more creators in sectors like gaming and NFTs.
Stacks, the largest layer-2 network for Bitcoin, has attracted tens of developers like wallets, NFTs, and socialFi. Its DeFi ecosystem has accumulated over $100 million in assets, with StackingDAO, ALEX, Zest, and Bitflow being the biggest players in the ecosystem.
Layer-2 networks have grown substantially in the past few years. Arbitrum (ARB) has become the biggest player in the industry while networks like Base, Optimism, and Blast are seeing strong momentum.
Stacks flips key support
The STX token has rebounded from this month’s low of $1.0638 to $1.80. In this rebound, it has moved above the 50-day moving average and flipped the upper side of the descending channel into a new support level.
Stacks has also moved slightly above the 61.8% retracement point. Therefore, the token may continue rising as bulls target the 50% retracement point at $2.11, 20% above the Aug. 26 level.
From: crypto.news
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