Market Research, Opinions

Reasons Behind the Stacks (STX) Price Surge

By Stephen Carter


Reviewed by: Stephen Carter


Stacks (STX)

Stacks (STX) coin is one of the most looked-for crypto shares amongst major altcoins. STX is the cryptocurrency token of the decentralized computing platform called Blockstack.

It is one of the leading block stack projects that helps expand the functionality of blockchain technology by serving as a second-layer protocol.

Over the past 1 year, it has gained over 49.9% in value having had over several green weeks whereby the value of the coin had increased at a momentous pace without taking too much of a hit in its surge regardless of being one of the most innovative and experimental bitcoin technological venture.

The surge in popularity was seen to coincide with the recent uptick in Bitcoin’s value and the increased trustworthiness that people have shown towards Stacks which introduced smart contract capabilities in Bitcoin.

The experimentation aspect of this bitcoin-secured layer initiative seems to have highly benefited the coin in terms of its popularity and its value change.

Journey of Stacks (STX) coin

Stacks Blockchain 2.0 was released on January 14, 2021, and publicly traded mostly in exchanges outside the U.S. As per the Securities and Exchange Commission (SEC) regulations Stacks has not been considered as a completely stable security since its launch.

Stacks (STX)

Yet, it has been in high demand and has been in a bullish phase for considerable periods, especially over the past few days. It has had a growth of over 185% in the past 90 days holding up a year-to-date increase of over 527% since its launch.

The coin currently has a market capitalization of about $3,538,840,589 and is trading at a volume of about $241,652,845

The all-time high of the coin was reported to be at $3.86 on April 1st, 2024. The coin currently at the time of writing this article trades at $2.48 per individual coin which is up 1.72% in value.

The reason for this rise in the price is speculated to be due to its total value locked in various decentralized platforms, which in simpler terms refers to the speculation price exceeding the expected value for the coin.

Major platforms like Arbitrum, iMMUTABLE X, and Polygon have reported such a change in the market response to the coin.

Furthermore, in addition to this, the surge in value in STX is also credited to the overall projected growth reported by firms like ‘CryptoJack’ and ‘DeFiLlama’ which seems to have excited large-scale investors about the growth prospects of the coin.

This has led to more and more investment giants, known in the investment community as ‘whales’, raking up huge amounts of shares of the coin.

However, what seems to worry investors is the current overall price decrease of STX as the coin is down 36.9% from its all-time high.

This trend is still worrisome as it makes it hard to know whether there will be a swing in the price which would paint the current gains as just a temporary misguided market fluctuation.

Prospects of investing in Stacks(SX)

Advanced analysts from a few firms like RSI opine that the market saturation of the currency is balanced with no signs of overbuying or overselling while various others have pointed at the increased market demand as the driving force for the surge.

It is uncertain as of yet about how long the bullish phase is going last but it has more or less been unanimously agreed upon by major crypto analysts that STX is likely to go on a bull run in the short term before the eventual correction that will see it become either bearish or losing some of its value in the long run.

Also, Read: Stacks (STX) Price Prediction 2024 To 2030

Personal Opinion and Conclusion

In my personal opinion Stacks(STX) is one of the most potentially profitable coins for those looking to take advantage of the short-term market trends.

While in the case of STX trading the long-term prospects of the coin cannot be guaranteed without considering the success of the experimental technology from which it gets its backing.

It is therefore advised that amateur investors act with caution when planning to hold the coin in their repositories for a long time but at the same time, they should try to make maximum utilisation of the current situation and not miss out on the prospects of trading with STX.

Stephen Carter

Stephen Carter is a software technology expert. He writes about market research on various hot topics like cryptocurrencies, explaining how they started. He's good at making complicated tech ideas easy to understand for everyone.

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