STX bulls secure strong weekly lead courtesy of these upgrades
- STX became one of the biggest gainers recently after pulling off a 90% plus rally.
- A look at stacking, is one of the potential reasons behind the strong demand.
STX turned out to be the best performer in the list of the top 50 cryptocurrencies and tokens by market cap.
The latest data revealed that it was up by roughly 96% at its $1.06 press time price. Most of those gains occurred during the week and the coin continued on the same bullish trajectory on Friday. It was up by roughly 17% in the last 24 hours at press time.
STX’s latest rally resulted in a retest of its previous high, which means there is a potential for a resistance-induced selloff.
Also, the price was almost in overbought territory, at the time of writing.
On the other hand, STX’s social dominance reached a new weekly peak in the last 24 hours. This may indicate a spike in the euphoria associated with its latest rally.
Reasons behind STX’s strong bullish performance
STX’s bulls likely responded positively to Stacks’ upgrade scheduled to take place on Sunday.
Many blockchain networks often experience a rally days ahead of a highly anticipated network improvement or upgrade. Things are not much different for Stacks but the upgrade’s impact on the Bitcoin network might be the reason for the positive investor response.
1/ ?Thread about what you need to know for @Stacks 2.1 upgrade$STX has one of its two biggest mainnet updates in less than a few days. The target activation is Bitcoin block height 781,551, which promised to strengthen its connection to Bitcoin. Current ETA is SUNDAY ? pic.twitter.com/wzAsOPVmsV
— Ryder (@Ryder_ID) March 16, 2023
Stacks operates as the smart layer network for Bitcoin’s mainnet. The changes made to Stacks as part of the upgrade will reportedly offer a boost to the network.
One of the key aspects of the upgrades is that the network will offer better stacking. The latter offers rewards for holding a certain amount of STX, only in this case, the reward will be in BTC form.
How many are 1,10,100 STXs worth today?
The stacking mechanism might be the reason why the demand for STX surged this week. Many investors have thus been accumulating STX in the hopes that they will get a chance to earn Bitcoin passively.
While this is perhaps one of the biggest influences behind the latest STX upside, it is common to see a selloff as the scheduled upgrade draws near. The fact that many holders might be stacking their STX may soften the potential selloff.