- Stacks price jumped sharply after the launch of Bitcoin Odyssey.
- Further gains could be limited as enthusiasm fades.
The Stacks price is having a good day even as other cryptocurrencies recoil. STX, soared to a high of $1.93, which was the highest level since January 20th this year. It has pared back some of those gains and is trading at $1.38, bringing its total market cap to over $1.4 billion.
Why is Stacks rising?
Stacks is a blockchain project that is solving one of the biggest challenges that exist in the industry. This challenge is that Bitcoin does not have smart contract features. As such, it is not possible for developers to build projects on top of its ecosystem.
Stacks has come with an ingenious solution that enables developers to build DeFi, NFT, and other metaverse projects on Bitcoin’s technology. It uses a proof-of-transfer solution to link Bitcoin with stacks. As such, transactions in its network are handled using Bitcoin’s technology.
Stacks is also the only platform that allows people to earn Bitcoin by just staking its STX token. This feature has over $625 million in total value locked (TVL) and an APY of about 8.5%.
The Stacks ecosystem has been growing lately. Some of the top apps built in its ecosystem are Alex, Arkadiko, CityCoins, GoStats, and BlockSurvey. Alex is an open-source DeFi protocol that mirrors the world’s financial markets. Arkadiko, on the other hand, is an open-source protocol that allows the creation of stablecoins that generate a yield in Bitcoin.
The Stacks price is rising on Friday as investors cheer the giant $165 million fund that Stacks unveiled. The fund is known as Bitcoin Odyssey and is backed by Digital Currency Group, GBV Capital, and White Star among others. It also secured a partnership with OkeX, a leading cryptocurrency exchange.
Developers who receive the funds will also receive technical help from Stacks and its team.
Stacks price prediction
The four-hour chart shows that the Stacks price has done well in the past few days. As it rise, it managed to move above the key resistance at $1.78, which was the highest level on February 7th. But it quickly retreated and is trading above the key resistance at $1.288. It is still above the 25-day and 50-day moving averages.
In my view, I don’t think that these gains will hold in the near term since initial excitement about the fund will ultimately fade. We saw that with Avalanche when it launched its giant Avalanche Rush fund.
