The bitcoin smart contract protocol stack has seen an increase in activity in recent weeks. As a result, its native STX token has more than doubled in value over the past week.
The bitcoin ordinal inscription craze has created at least one major beneficiary in the stack protocol.
The stack enables developers to write smart contracts for the bitcoin network. Furthermore, projects in the Stack ecosystem are trying to capitalize on the current hype for ordinals.
Plain tokens are similar to non-fungible tokens (NFTs). They can be denominated in one satoshi, the smallest denomination of bitcoin, and remain permanently on the blockchain. Ordinal’s official documentation labeled personal assets as “digital artifacts” instead of NFTs.
Additionally, according to Dune Analytics, over 150,000 ordinals have been marked in the past few weeks.
The co-founder of Stack, Muneeb Ali, told Defiant that the Ordinals craze and growing interest in the protocol was no coincidence. “What’s missing is the young, enthusiastic developer community that’s actually building things, shipping stuff,” he Said,
Stacks and BTC Long Term Potential
On February 21, Ali predicted that ordinances and activity from bitcoin layers “give a clear path to long-term bitcoin security” rather than mining.
He also predicted that there could be some parallels in the development of Ethereum scaling solutions such as Layer-2 if the demand for transactions on the Bitcoin network continues to grow.
In an interview on 9 February, he commented That Ethereum is a $500 billion network with an equivalent $500 billion dApp ecosystem. But with bitcoin having a $1 trillion network value with very few apps, “this is a market opportunity.”
In addition, Stack is developing a trustless bridge for bitcoin to be ported to the DeFi ecosystem of protocols.
According to its website, the sBTC token will allow BTC to become the foundation for a more secure Web 3 “by enabling trusted writing to bitcoin and the movement of bitcoin in and out of the bitcoin layers.”
stx price rise
As a result the protocol’s native STX token has been on fire. STX has gained a whopping 130% in the past week and is up 15.8% on the day. As a result, STX was trading at $0.791 at press time.
Despite those massive gains, STX is still deep in bear territory. The token remains down 77% from its December 2021 all-time high of $3.39.
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.