Stacks Get a Boost from the Bitcoin Ordinal Inscription Craze
Bitcoin smart contract protocol Stacks has seen a surge in activity in recent weeks. As a result, the original STX token has more than doubled in the past week.
The Bitcoin Ordinal subscription craze has created at least one major beneficiary in the Stacks protocol.
Stacks enable developers to write smart contracts for the Bitcoin network. Furthermore, projects in the Stacks ecosystem are trying to capitalize on the current hype for Ordinals.
Ordinal inscriptions are similar to non-fungible tokens (NFT). They can be entered in one Satoshi, the smallest denomination of a Bitcoin, and remain permanently on the blockchain. Ordinal’s official documentation labeled the individual assets as “digital artifacts” rather than NFTs.
In addition, more than 150,000 ordinals have been entered in the past few weeks, according to Dune Analytics.
Stacks co-founder Muneeb Ali told Defiant that the Ordinals craze and protocol interest was no coincidence. “What’s been missing is the young, enthusiastic developer community that’s actually building things, shipping things,” he so.
Stacks and BTC long-term potential
On February 21, Ali predicted that Ordinals and activity from Bitcoin teams “provide a clear path for long-term Bitcoin security,” rather than mining.
He also predicted that if demand for trading on the Bitcoin network continues, there may be some parallels to the growth of Ethereum scaling solutions such as layer-2.
In an interview on February 9, he told commented that Ethereum is a $500 billion network with a corresponding $500 billion dApp ecosystem. But Bitcoin has a $1 trillion network value with very few apps, “that’s the market opportunity.”
Furthermore, Stacks is developing a trustless bridge for Bitcoin to be ported into the protocol’s DeFi ecosystem.
According to the site, the sBTC token will allow BTC to become the foundation of a more secure web3 “by enabling trustless writing to Bitcoin and movement of Bitcoin in and out of Bitcoin layers.”
STX Price increases
The protocol’s original STX token has been on fire as a result. STX has gained a full 130% in the last week and is up 15.8% on the day. As a result, STX was trading at $0.791 at press time.
Despite these huge gains, STX is still deep in bear market territory. The token is still down 77% from its December 2021 record high of $3.39.
Disclaimer
BeInCrypto has reached out to the company or person involved in the story for an official statement on the latest development, but has yet to hear back.
