Stacks price analysis: Should you invest in Stacks (STX)?

So far, throughout the cryptocurrency industry, Ethereum has been the leader when it comes to smart contract capabilities as well as a number of projects that run on its network, however, there has also been a push to add these developments to Bitcoin. 

One of these projects is Stacks STX/USD, which is a layer-one blockchain protocol fully designed to provide smart contracts as well as decentralized applications (dApps) to Bitcoin.

On July 10, STX created and sold the first NFT on Bitcoin from the Stacks foundation. This marked a new beginning of smart contacts on Bitcoin. It was called Cara Delevingne’s “Mine” and sold for 18,000 STX.

Developments such as these increase the demand for the STX token and with its increased circulating supply, the value will increase as well.

On July 21, we saw the introduction of Clarinet, which was a tool built by Ludovic Galabru that streamlined the process of developing, testing, and deploying Clarity smart contracts. Through the development of tools such as these, we can potentially see a lot more developers becoming interested in developing on Stacks, which will in turn increase the demand for the STX token and increase its circulating supply and value.

Another interesting aspect surrounding STX is that users can stake STX to earn BTC as a reward. This is done through proof-of-transfer (Pox) which runs alongside Bitcoin and uses its network as a broadcaster. This is earned at an average rate of around 10%.

Stacks price analysis: Should you invest in Stacks (STX)?

On July 23, Stacks had a value of $1.08.

To compare its current value with its potential growth, we need to look at its all-time high.

STX had an all-time high value of $2.92 that was on April 05, 2021. To get a better perspective of its ups and downs as of recently, let’s look at how it grew across June and July.

On June 3, it had one of its highest values at $1.04 and one of the lowest at $0.53 on June 22. However, on July 11, after news came of the first NFT sold, its value got up to $1.45. This gives us a perspective as to the jumps in the value we can expect the STX token to get.

In other words, at the $1.08 price point, STX is a worthwhile investment, especially given its new developments with tools such as Clarinet and the Clarity programming language. We can expect its value to increase to $1.40 by the end of August.