Stacks (STX) is a lesser known DeFi platform, gaining attention for the outsized gains of its native token. STX was up nearly 18% on Thursday while the rest of the market remained in the red, reaching a valuation of $1.12. <\/p>\n\n\n\n
STX doubled its price in the past two weeks, showing the highest trading volumes for the past three months. The asset may be gaining traction as more investors are on the lookout for potential high performers. STX peaked above $2.67 after a long history of trading below $0.20. Because it is still a relatively unknown asset, STX has offered significant upside in the past. <\/p>\n\n\n\n
With higher volatility, STX is offering a risky upside as it is still discovering a price range. <\/p>\n\n\n\n
BTC prices<\/a> have encouraged traders to use the asset as collateral, due to its deep liquidity and relatively low slippage. But DeFi<\/a> is mostly related to Ethereum (ETH), as well as Binance Smart Chain<\/a> (BSC).\u00a0<\/p>\n\n\n\n Stacks offers the opportunity for a second-layer solution to BTC, as well as building DeFi applications. According to CoinMarketCap data, Stacks already locks in more than $432M in liquidity.<\/p>\n\n\n\n Stacks offers distributed apps that also place a record on the Bitcoin blockchain, with most of the computation happening off-chain. To increase security, the native STX token is staked to avoid malicious network usage. For retail users, STX can be locked for a predetermined time period, while accruing rewards in BTC. <\/p>\n\n\n\n The Stacks team claims each BTC block now contains a transaction that also bundles up the state of the Stacks network. At the same time, some amount of BTC gets transferred to STX owners. <\/p>\n\n\n\n BTC is mostly used as highly valuable, liquid collateral in various crypto lending projects. Based on projects reporting, about $6.54B in value is locked in Wrapped BTC, or WBTC, an asset that represents the value of BTC and can move across the Ethereum network. <\/p>\n\n\n\n Projects like NEXO also use BTC as collateral for fast loans. One of the rationales is that BTC can be staked as collateral instead of selling, thus making use of potentially growing prices. <\/p>\n\n\n\n BTC is accepted in some form for most DeFi projects. <\/p>\n\n\n\n The chief selling point of STX is that its transactions are recorded both on its native ledger and the Bitcoin blockchain. The Bitcoin blockchain has recovered its hashrate after a recent bout of shutdowns, with mining still clocking in close to 100 TH\/s. <\/p>\n\n\n\n BTC is also protected from spam transactions, as the fee to include a transaction in a block is growing in proportion to the demand for new transfers. <\/p>\n\n\n\n The most recent rise in STX prices arrived as a trading anomaly. STX is still relatively illiquid and even small volumes may achieve significant price swings. In the past days, STX moved up against BTC in one of its trading pairs. <\/p>\n\n\n\nHow BTC Participates in DeFi<\/strong><\/h3>\n\n\n\n
BTC Offers High Security to STX<\/strong><\/h3>\n\n\n\n
What Boosted the STX Market Price<\/strong><\/h3>\n\n\n\n