Why STX Just Exploded 23% and What It Means for Your Bitcoin Gains—Don’t Miss Out!

Why STX Just Exploded 23% and What It Means for Your Bitcoin Gains—Don’t Miss Out!

Stacks [STX] is stealing the spotlight today, surging over 23% and outpacing every other heavyweight crypto in the top 100 by market cap. That’s no small feat, especially when you consider it just broke free from a stubborn descending channel last week—thanks to a broad crypto market rebound. Now, here’s the kicker: Stacks isn’t just riding the Bitcoin [BTC] wave; it’s directly benefiting from Bitcoin smashing through the $80,000 barrier, igniting strength across the board. But what’s really driving STX’s meteoric rise? The answer lies in Bitcoin’s evolving utility—particularly staking—which is fueling a buzz that sent social mentions up by nearly a third this week alone. So, the big question is—could Stacks be rewriting the playbook on Bitcoin Layer 2 solutions while flipping the script on how we think about crypto yields? Let’s dive into what’s fueling this surge and whether STX’s technical setup is ready to ride this momentum even higher. LEARN MORE

Stacks [STX] is up more than 23%, leading all top 100 cryptos by market cap in terms of daily gains. The altcoin broke from a descending channel last week, thanks to a broader crypto market rebound.

Stacks, a Bitcoin [BTC] Layer 2 solution, is benefiting from the surge in prices of BTC. Bitcoin broke the $80,000 wall, prompting market-wide strength.

The continuous expansion of Bitcoin’s utility, especially the staking feature, has driven Stacks’ prices. In fact, the social mentions of STX increased by 31.7% this week, as per LunarCrush. Here is why:

Decoding Stacks’ network usage

Recently, Stacks announced that self-custodial Bitcoin staking would go live with the Genesis Bond on the 10th of September. The upgrade allows holders to earn BTC-denominated yield while their coins stay in Bitcoin’s base layer under their own keys.

Thus, Bitcoin holders will finally get productive capital without giving up custody or leaving BTC’s security models.

As a result, network usage has spiked as participants embrace this BTC utility. The Total Value Locked (TVL) slowly increased from $83 million to $102 million in six days.

However, DEX volume more than doubled in the same period. It grew from $960K to $2.18 million, as per DefiLlama.

Stacks STX
Source: DefiLlama

To reinforce this spike in network usage, Chain Fees told a story. They increased by almost 10x, from $339 to $3,139, indicating network congestion.

On top of the fundamental upgrades, chain activity data indicates STX prices may continue rising. Is the technical outlook in agreement?

Can STX bulls print a new YTD high soon?

After the trend channel breakout, the uptrend hinged on staying above $0.2260, which is the support level coinciding with the 200-day EMA. Usually, staying above it means that the market structure is bullish.

However, previous STX crypto price prediction analysis indicated that $0.26 was a crucial level for STX’s rally. It stood as a key supply zone but has been truly tested by bulls who are determined to breach it. The previous $0.17 supply zone was easily taken out.

For STX to surpass this year’s peak at $0.4019, which is 38% away from current prices, it needs to clear the $0.26-$0.30 zone. Interestingly, the momentum is present and growing, with a reading of 0.1497.

StacksSTX
Source: STX/USDT on TradingView

Otherwise, if bears at the $0.30 supply zone outweigh bulls, STX may revert to its current mean position at $0.2260. If the 200-day EMA breaks down, it may invalidate the current bullish market structure shift.


Final Summary

  • Stacks rallied over 23%, leading daily gains among the top 100 cryptos by market cap, thanks to the expanding utility of Bitcoin.  
  • STX flipped the 200-day EMA into support, but bulls were struggling to break the $0.30 supply zone. 

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