Bitcoin (BTC-USD) is oft criticized for its lack of use cases. Sure, it can be used as a means of transaction, but with its massive prices, investors are more likely to just buy and hold the asset rather than spend it. However, there are plenty of projects out there to fix that. One of the most notable of these is Stacks (STX-USD). Stacks is trying to further the development of the Bitcoin ecosystem through its own layer-1 network. And today, the Stacks crypto, STX, is seeing some massive gains atop news of a big new effort by developers.
Stacks is a layer-1 blockchain platform that wants to bridge Bitcoin with new use cases. Since launching three years ago, the Stacks network has become home to over 20 decentralized apps (dapps). These apps cover a number of utilities; users can mint and swap non-fungible tokens (NFTs), join crypto mining pools, send private instant messages to other users and so on.
This might just sound like any other layer-1 network, but Stacks takes a unique approach to the technology in order to bridge with Bitcoin. The Stacks layer is built using Bitcoin’s base layer blockchain for data storage. This means Bitcoin records all the transactions on the Stacks network to its own chain. Ultimately, anything that happens on Stacks happens through Bitcoin, and everything is containerized on Bitcoin.
The Stacks crypto, STX, is used to fuel transactions on the network. It is also a popular method of farming Bitcoin holdings; one can “stack” their STX by locking it on the network. Doing so generates BTC rewards.
Stacks Crypto Posts Huge Gains With New Development Investment
Stacks is fast becoming one of the more popular cryptocurrency investments. Indeed, the Stacks crypto is among the 50 largest currencies in the world, holding a market capitalization of over $2 billion. And today, it is reaching ever higher toward the top with a big new announcement.
The Stacks network is collaborating with crypto exchange Okcoin on a project called Bitcoin Odyssey. The project is a year-long pledge to accelerate adoption of Bitcoin and Bitcoin-related technologies. Through Bitcoin Odyssey, venture capitalist firms who helped create the pledge will put forth a total of $165 million in order to fund development of of products for the Stacks network. The firms contributing to the incentive include White Star Capital, Digital Currency Group and Alumni Venture Group, among plenty of others.
This is obviously huge for the Stacks crypto. The network is seeing a massive injection of working capital for products hitting on every trendy industry, be it the metaverse, Web 3.0 or non-fungible tokens. It will also allow developers to continue building on top of existing projects on the Stacks network.
As a result of the bullish news, the STX coin is seeing major price movement. It is currently gaining nearly 37%. Moreover, trading volume is reaching astonishing new heights for a 24-hour period. Over $381 million in STX is swapping hands today, a sizable increase over yesterday’s volume of $18 million.
On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
