Nakamoto Upgrade Approval Spurs STX Price Surge Amid Market Downturn
Bitcoin’s layer 2 network, Stacks (STX), gained significant attention on Google after its Nakamoto upgrade received widespread approval. The Stacks Foundation reported that the upgrade was supported by all voters who held Stacked STX, and even 99.98% of non-stackers voted in favor of the proposal. As a result, the Nakamoto Testnet is scheduled to launch on March 25, 2024, followed by the Nakamoto Mainnet (Instantiated) from April 15-29 and the Nakamoto Mainnet (Activated) from May 15-29.
The project’s white paper highlights the expected enhancements that the upgrade will bring to the network. These improvements include faster block times, guaranteed finality of Bitcoin transactions, reduced risks of forking, and a decrease in the maximum extractable value (MEV) associated with Bitcoin transactions. Additionally, the upgrade will introduce sBTC, a trust-minimized iteration of Bitcoin designed specifically for the Stacks ecosystem, aiming to enhance the DeFi experience and match the capabilities of other major platforms.
To ensure the success of the mainnet, the Stacks Foundation has emphasized community involvement in the testnet phase, seeking development contributions and valuable feedback. The approval of the upgrade also had a positive impact on the price of STX, which surged by over 13% on Wednesday. While Bitcoin experienced a drop below $61,000, STX reached an intraday high of $2.96, inching closer to its all-time high of $3.47 achieved on March 11, 2024.
In 2023, Stacks witnessed significant growth, according to an analysis by Messari. The study revealed that the total value locked (TVL) in the project rose by 363% quarterly and 773% annually, reaching $61 million. Moreover, average daily miner revenue increased by a staggering 1,015% annually, amounting to $78,000.
Analysts show optimism about the future prospects of STX, with some predicting a price of $45 in the coming years. At the time of writing, STX was trading at $2.93, indicating a 24-hour gain of 8.2%.
Read more: Bitcoin interest in Argentina reaches a 20-month high amid soaring inflation exceeding 270%.
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