Demand surging for Stacks, a blockchain protocol that makes Bitcoin programmable
Native token STX logs 20% gains in the last 24 hours
A slew of fundamental developments boosting STX price
Jaipur (Coinchapter.com) – STX, the native cryptocurrency of Stacks, is flying off the charts. The protocol which makes Bitcoin programmable has experienced a massive demand surge in the last 24 hours. Consequentially, the STX/USDT exchange rate shot up by 20%. From the lows near $1.25, the pair rose to $1.55 during the opening session of today’s trading day.
STX’s spot price has been rising in tandem with the cryptocurrency market since July 20. Investors in the Bitcoin revolutionizing cryptocurrency made north of 50% gains (from $0.76) to date. Although the STX/USDT pair is experiencing some selling pressure, buyers managed to close above the previous local tops at $1.43(May 24) and $1.47(July 11). These price points served as crucial resistances but have now flipped to critical support levels.
What Is Stacks?
According to the official website, Stacks is “an open-source network of decentralized apps and smart contracts built on Bitcoin.” It enables developers to leverage Bitcoin’s security, liquidity, and network and create applications that can extend and scale the world’s first blockchain scope.
The project is considered a Layer-1 blockchain with Bitcoin as the foundational layer. Stacks allows cross-chain transactions with Bitcoin, and akin to Ethereum’s Solidity, it boasts of a native programming language called Clarity.
Slew Of Developments Boosting STX
Several fundamental pointers have fueled STX’s growth recently. However, the latest exponential rise in STX/USDT is due to the reports of MiamiCoin, being built on Stacks. MiamiCoin, if successfully developed and actioned, would be the US city of Miami’s official governance crypto token.
“City governments can embrace Bitcoin and crypto faster than nations. Miami Mayor Francis Suarez is experimenting with crypto to give Miami a Bitcoin-yielding treasury”, Stacks co-founder Muneeb Ali tweeted a few hours ago.
In the following tweet thread, Ali explained how city governments could adopt crypto assets. One is by buying Bitcoin, and the other is by issuing a governance token to citizens. “Cities like NYC run on billions of dollars. Like public companies, city governments can also diversify their cash balances into Bitcoin”, observed the Stacks co-founder.
But Ali pointed out that governments can allow people to trade’ city futures beyond plainly holding the top cryptocurrency on their balance sheets.’ That’s because “…the citizens or stakeholders (who don’t necessarily live in the city) should have some say in local policies.”
Finally, he mentioned how MiamiCoin would help Miami residents engage in trading city futures. And how a blockchain project called “CityCoins” is developing the same. “They’ve designed the governance/futures tokens to have a Bitcoin yield. The Bitcoin yield is a game-changer. The BTC yield gives the new asset a floor value. It is worth at least as much as the BTC yield it can generate.” said Ali.
MiamiCoin will be launched this week on “Stacks + Bitcoin,” announced Muneeb. “…If the experiment works, Miami can have a Bitcoin-yielding treasury, and citizens can trade Miami futures,” he concluded.
STX Technical Setup
Stacks’ native blockchain asset is hovering comfortably above the 20-day exponential moving average (EMA), a bullish sign. But RSI (Relative Strength Indicator) is giving off overbought vibes and that a selloff is nigh. After printing an upward trajectory from 31.34, the indicator topped out at 70.97. RSI is now trending at 68.91.
Sellers took over after STX’s vertical rally to $1.55, ad pushed prices down to $1.41. But the STX/USDT pair is still holding firm above $1.45. As per the Fibonacci extension plot, an intense bout of selling pressure continues, which could cause the asset to revisit supports at $1.38 or even $1.25.
In contrast, a bullish takeover would lead to STX/USDT exchange rates gunning for $2.033 as the next upside target.
Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.