Stacks, a blockchain that combines Bitcoin with smart contracts, is in high demand. The price of its STX token has risen 57 percent in the last 24 hours to $2.3, just as its nascent NFT market is gaining traction.
STX’s explosive price movement propelled the cryptocurrency thirteen places higher in the global market capitalization rankings. According to crypto data aggregator Nomics, it is now the 55th largest cryptocurrency in the world, with a market cap of $2.9 billion.
Stacks’ most recent foray into Bitcoin NFTs. These are unusual in the crypto world, especially since Bitcoin does not natively support smart contracts and the majority of the NFT market is based on Ethereum, which does.
Although the Stacks blockchain supports smart contracts, all transactions are rolled up and settled on Bitcoin. Last month, Stacks founder Muneeb Ali described it to Decrypt as “Layer 1.5,” distinguishing it from Ethereum Layer 2 solutions such as Arbitrum or Polygon.
Although Stacks’ NFT marketplace is new, Bitcoin NFTs have been around for a while. Before Ethereum, some of the first tokenized digital assets were minted and sold as early as 2012 on Counterparty, a third-party Bitcoin protocol.
Stacks’ NFT market expands
There are indications that Stacks’ NFT market is expanding. On the Stacks marketplace on Monday, 12-year-old Abraham Finley sold out of a collection of about $8,000 worth of hand-drawn pixelated Bitcoin bird NFTs in under an hour.
By Thursday, Bitcoin Birds had become the most traded NFT collection on Stacks, with 16,651 STX (approximately $21,000) worth of tokens traded in 24 hours. StacksPunks, a CryptoPunks clone, also performed well this week. StacksPunks has currently traded approximately 620,528 STX tokens, or approximately $1.3 million.
It’s important to remember that Stacks’ NFT launches are minor news in comparison to the daily NFT trading on Ethereum.
According to NFT data aggregator CryptoSlam, the Ethereum-based game Axie Infinity traded over $20 million in tokens in the last 24 hours. Other smart contract blockchains, such as Solana, Flow, and the Ethereum scaling solution Polygon, have also gotten a piece of the NFT pie.
STX investors, on the other hand, are clearly excited about the prospect of more Bitcoin NFTs and Bitcoin-backed decentralized finance products. A potential foothold in the burgeoning NFT and DeFi markets is exciting news for all Bitcoin speculators.
The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.