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Stacks (STX) surges as Bitcoin NFT hype grows, but its blockchain activity raises concern

Published 02/28/2023, 04:30 PM
Updated 02/28/2023, 06:00 PM
© Reuters.

Stacks is one of the first blockchains to enable a way for minting Bitcoin (BTC) Ordinals, which puts it in an excellent position to benefit from the hype. However, Ordinals have invoked an issue from the past where Bitcoin maximalist ideologies will be tested if the NFTs lead to network congestion.

On top of that, Stacks has yet to deliver all the functionalities required to support an NFT trading ecosystem and it faces competition from projects in other blockchain ecosystems. The fundamental and technical analysis of the project suggests that the price surge might have reached overbought conditions and may correct in the near term.

Number of ordinals inscribed on Bitcoin daily. Source: Dune
Top used dApps on Stacks between Jan. 28 and Feb. 27. Source: DappRadar
Gamma NFT marketplace stats. Source: DappRadar
STX/USD daily price chart. Source: TradingView
STX/USD weekly price chart. Source: TradingView

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