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STX, the native token powering the Bitcoin-adjacent Stacks blockchain, has gained 19% overnight, according to data from CoinGecko.
At press time, STX is changing hands at roughly $0.70, slightly lower from its 180-day high of $0.75, reached earlier today.
On a weekly note, STX is up a whopping 132%. The weekly gains not only handed hefty profits to short-term holders but also helped the coin regain its billion-dollar market capitalization.
Despite the week’s positive rally, STX is still down 78% from its historical all-time high of $3.39 in December 2021.
Launched in 2017, Stacks is built on top of Bitcoin, allowing developers to build and deploy smart contracts secured by the original blockchain network.
Read more: Bitcoin breaks $25k once again as bullish momentum gains
In simpler terms, Stacks operates much like Ethereum with a link to the Bitcoin blockchain through proof-of-transfer (PoX) consensus. According to Stacks, “PoX uses the proof of work cryptocurrency of an established blockchain to secure a new blockchain.”
A likely driver behind the recent pump in STX may have been the steady growth of NFT network activity on the Stacks blockchain.
The hype around Ordinals, a newly launched Bitcoin-based NFT project, may have also had a positive impact on the network’s overall activity as investors hunt down more exposure to the NFTs-on-Bitcoin narrative.
