Stacks (STX) Surges 10% Due To Bitcoin Network Congestion

1 year ago

While the Bitcoin and crypto markets are deep successful the red, 1 altcoin stands retired today, posting a double-digit terms increase: Stacks (STX). Along with the Lightning Network, the task is considered the astir promising layer-2 exertion for Bitcoin astatine the infinitesimal and is presently benefiting from the web congestion dilemma.

There are presently implicit 425,000 unconfirmed transactions successful the meme pool. Before being added to the Bitcoin blockchain, transactions are sent to the network’s meme pool, wherever they hold to beryllium selected by a Bitcoin miner and inserted into the adjacent Bitcoin block. At mean priority, a transaction presently costs an mean of $19.04.

The Case For Stacks

The congestion is causing a heated debate: While 1 broadside calls it a DDoS onslaught connected Bitcoin, the opposing broadside is calling the crushed for the precocious fees, Bitcoin ordinals and BRC 20 tokens, a revolution. But nary substance which broadside 1 takes, 1 happening becomes obvious. Layer-2 technologies are perfectly indispensable and could look arsenic a large winner.

Revolution oregon DDoS?

🚀Market headdress of BRC20 based #Bitcoin tokens reaches $1 billion.

⌛️Sh*tcoins are highly congesting the network. There are inactive 425,000 unprocessed transactions piled up successful the meme pool.

— Jake Simmons (@realJakeSimmons) May 8, 2023

However, if the BTC terms unsocial is to beryllium the starring indicator, the existent dilemma surrounding BRC20 tokens connected the Bitcoin blockchain is not truly doing the web immoderate good. Binance hasn’t truly done the marketplace immoderate favors either with the aggregate withdrawal halts.

But successful the agelong run, higher fees are needed for the BTC web to regenerate the falling artifact reward. Co-inventor of Stacks, Muneeb Ali, truthful wrote contiguous connected Twitter that high fees are not an onslaught connected Bitcoin, arsenic they volition beryllium the norm erstwhile Bitcoin grows to a cardinal people. Rather, Ali says they are a wake-up telephone to developers to amended and turn Bitcoin L2s.

Bitcoin fees conscionable deed a caller record. Up 500x from conscionable a fewer months ago. Officially marks the commencement of the arms contention to physique the champion Bitcoin L2s. Lightning, Stacks, and Rootstock person a caput start. Time to build.

Bitcoin adept Will Clemente besides made the lawsuit for L2 today:

If we are successful a caller authorities of higher Bitcoin tx fees owed to ordinals/brc-20s, deliberation there’s a precise compelling setup for the lightning web implicit the adjacent fewer years.

STX Rises 10%

During the archetypal days of May, the Stacks terms has breached a downtrend that has lasted since March 20 (black line). Thanks to today’s 10% rise, the STX terms present faces the 23.6% Fibonacci level astatine $0.82. At the terms level, stronger absorption from the bears tin beryllium expected. Since April 19, STX has not managed to regain the mark.

If this succeeds, a rally to the portion of $0.92, wherever the 38.2% Fibonacci is located, seems possible. Afterwards, the mode to the psychologically important people of $1 would beryllium wide (50% Fibonacci). If the bulls besides interruption done this level, $1.07 (61.8% Fibonacci) and $1.18 (78.6% Fibonacci) would beryllium the adjacent targets.