About Stacks (STX)
A layer-1 blockchain, Stacks was built to bring smart contract functionality to Bitcoin.
"Stacks enables Decentralized Finance (DeFi) for Bitcoin," the project says, pointing to the increasing frequency of instances where developers have created decentralized applications (dApps) built on top of each other's apps, with a best-of-breed approach and leveraging the Bitcoin blockchain as a most secure base layer.
Stacks brings scalable transactions and general-purpose smart contracts to Bitcoin without modifying it, the project says.
Formerly Blockstack, Stacks is focused on trying to usurp centralized cloud service providers, according to Messari.
STX is the network’s native asset running a computing network and ecosystem for decentralized applications (dApps).
The Stacks network allows users to directly own digital assets, such as like domain names and programs; computing is handled on the periphery (on user devices); data is stored discreetly, on behalf of individual users, via applications on the platform.
Through a partnership with Stacks, OKCoin recently said it would push toward development of a broader DeFi ecosystem on Bitcoin, CryptoPotato said.
The current price of STX
As of early April 2022, STX was trading at about $1.50, having shed 40% over the previous 12 months. The token’s slide during the first three months of the year came amidst stiff global macro headwinds that have detrimentally impacted digital asset markets.
STX ended 2021 on a roll, hitting an all-time high of $3.39 a few days before Christmas. This represents an 8,375% increase from STX’s March 2020 record low of $0.04 (CoinGecko).
How the price of STX is determined
STX’s price is partially a reflection of the token’s deflationary nature. Unlike fiat currencies, the supply of STX has a hard cap: only 1.32 billion will ever be put into circulation. As of March 2022, roughly 1.05 billion of the tokens had been released. Much like Bitcoin, STX employs a halving mechanism which sees block rewards decreased every four years (Messari).
What the bulls are saying
*“Blockstack makes it possible to build decentralized applications and smart contracts on Bitcoin,” Coin Bureau said.
*Stacks’ consensus mechanism is far more energy-efficient and faster than Bitcoin’s Proof-of-Work system, Securities.io said.
*STX is an outstanding long-term (one-year) investment, WalletInvestor said.
What the bears are saying
*A pullback from the 50-day moving average resistance could result in STX break below its ascending trend line support, according to Cointelegraph.
*”It is entirely possible that another network or blockchain could come along, doing much of the same thing, and end up taking users away from Stacks,” Currency.com said.
*If investors turn against the crypto, the price of STX might plummet to $0.50,
TheNewsCrypto said in early 2022.
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This content is correct as of March 2022.
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