Stacks (STX) prices rose 195% after revealing plans to introduce DeFi to Bitcoin


Ethereum (Ethereum) Is currently in the leading position in terms of smart contract functions and the number of projects running on its network, but is pushing to build products on Bitcoin (Bitcoin) Is receiving the attention of advocates such as Square CEO Jack Dorsey, who are the first to introduce decentralized finance (DeFi) into the Bitcoin network.

A project that aims to combine the functions of DeFi with the security of the Bitcoin network is Stacks (STX), a first-layer blockchain protocol designed to integrate smart contracts and decentralized applications (dApps) Introduce the Bitcoin network.

Data from Cointelegraph Markets Pro with Transaction view It shows that since it fell to a low of $0.50 on June 22, the STX price rose by 195% to $1.47 on July 11. Now Bitcoin is showing some bullish momentum, and the STX price has risen again, rising by 10% on July 22 .

STX/USDT 4-hour chart. source: Transaction view

Three reasons for the recent strength of STX include the release of Clarity programming language, which brings smart contracts to Stacks 2.0 and Bitcoin, STX holders can pledge tokens for BTC rewards, DeFi and non-fungible tokens (NFT) The arrival of the Bitcoin network.

Smart contracts come to Bitcoin

The introduction of the Clarity programming language on Stacks has been the main catalyst for the growth of the Stacks ecosystem because it supports the creation of smart contracts on the Bitcoin network.

Clarity claims to be a “decidable language”, which means “you can know with certainty what the program will do from the code itself.”

The main difference between Clarity and other smart contract languages ​​is its decidable language, it is not Turning complete, and the language is interpreted and broadcasted on the blockchain as it is, instead of being compiled, which “ensures that the executed code is human readable And auditable.”

The cooperation between the two networks means that popular industries such as DeFi and NFT can now be run and recorded on the Bitcoin network without worrying about slower transaction times and increased costs.

STX holders can earn BTC through staking

Stacks recently launched STX staking for holders, which allows them to receive BTC as a reward.

The Stacks network uses a new mining protocol called Proof of Transmission (PoX), which runs in parallel with Bitcoin and uses the BTC network as a reliable broadcast medium for its block header.

Although most proof-of-stake networks provide pledge rewards paid in native tokens, members of the Stacks community can pledge their STX tokens to earn BTC at an average rate of 10%.

This is one of the few opportunities in the entire crypto field where token holders can pledge their tokens and receive BTC as a reward.

related: Crypto betting rewards and their unfair taxation in the U.S.

DeFi and NFT come to Bitcoin

On July 10, STX created and sold the first Bitcoin NFT from the Stacks blockchain.

The event is designed to mark the beginning of a new era of Bitcoin smart contracts, and there is also good news that the U.S. dollar (USDC) will be extended to the Stacks network.This prompted some experts to cite Bitcoin Law It stated that “successful cryptographic experiments will eventually appear on Bitcoin.”

The arrival of NFT and DeFi functions also introduces new ways to use these popular industries to earn BTC revenue, which may attract new participants.

Due to these developments, STX’s momentum has been rising in July, as evidenced by the increase in prices and 24-hour trading volume.

VORTECS™ data comes from Cointelegraph Markets Pro Before the recent price increase, a bullish outlook for STX began to be discovered on July 19.

Cointelegraph’s unique VORTECS™ score is an algorithmic comparison of historical and current market conditions. These data points include a combination of market sentiment, trading volume, recent price changes, and Twitter activity.

VORTECS™ score (green) and STX price. source: Cointelegraph Markets Pro

As shown in the graph above, STX’s VORTECS™ score climbed to green on July 19 and reached a high of 70 in approximately 34 hours before the price rose by 42% in the next two days.

The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.