Can Stacks Price Reach $1 Amid Rising Interest in Bitcoin Layer-2 Protocols?

·

Stacks (STX) price surged, hitting a weekly high of $0.90 during Friday's Asian trading session. Bitcoin's layer-2 protocol showcased strong bullish momentum, trading at $0.88 at press time, reflecting increasing institutional interest in the decentralized finance (DeFi) ecosystem. The STX rally appears robust enough to sustain the uptrend, targeting levels above $1.00 in the coming days.

Stacks' Uptrend Stabilizes as Liquidity Boosts DeFi Ecosystem

Bitcoin sidechains have performed impressively in recent weeks, led by Stacks, the largest chain in the ecosystem. STX's value has risen over 80% since its April low of $0.47, mirroring broad crypto market optimism as Bitcoin briefly reclaimed $94,000 on Wednesday.

Based on on-chain data shared by the Stacks team, STX's price growth stems from investor interest in DeFi products alongside other key factors.

Liquidity in the Stacks DeFi ecosystem is accelerating:

  • 3k sBTC already on Stacks—on track to become the #1 Bitcoin L2 by BTC supply.
  • Stablecoin market cap surged 400% in Q1, crossing $12M+.
  • New TVL record for STX being liquid-staked, unlocking more capital.

For instance, the protocol's stablecoin market cap grew over 400% to nearly $6 million. As the chart below shows, Stacks ranks as the third-largest protocol in this niche, trailing Cronos and Morph.

Stacks Stablecoin Market Cap | Source: CryptoRank

Institutional interest in Bitcoin's ecosystem continues fueling Stacks' growth, supported by milestones like Grayscale's STX Trust launch. Exchanges like Crypto.com now offer STX staking, enabling investors to earn rewards. Rising staking balances reflect growing confidence amid heightened market activity.

Institutions recognize Stacks as the leading Bitcoin L2:

  • Jump, UTXO, SNZ, and others invested in sBTC.
  • Grayscale launched the STX Trust Fund.
  • Exchanges like Crypto.com offer STX staking.
  • Enterprise-grade validators with billions in AUM support Stacks.

Stacks rebounded into positive territory based on monthly returns data from CryptoRank. After declines in Q1 (-13.5% in January, -37.4% in February, -27.1% in March), April returns exceeded 44%, breaking a three-year negative trend for the month.

Stacks Monthly Returns (USD) | Source: CryptoRank

Derivatives markets reinforce STX's growth, with Open Interest (OI) rising 25.63% to $73.26 million in 24 hours. A 54.4% jump in trading volume to ~$283 million confirms heightened market activity and trader confidence.

Stacks Derivatives Data | Source: Coinglass

Stacks Price Nears $1 Amid Bullish Momentum

Stacks traded at $0.88 at press time as speculators battled the $0.90 resistance, emphasized by the 200-day EMA on the 12-hour chart. The RSI at 78.56 signals strong bullish momentum but also overbought conditions. Rising trading volume sustains STX's potential to breach the next key resistance at $1.00.

12-Hour STX/USDT Chart

Broad crypto market sentiment remains positive, bolstered by Bitcoin's rise above $93,000. However, overbought conditions—especially for STX—may slow the uptrend, potentially triggering a weekend pullback. Traders should monitor key levels like the ascending trendline (blue dotted), 100-day EMA ($0.70), and 50-day EMA ($0.66) as potential support zones.

👉 Explore Stacks' DeFi Ecosystem

Cryptocurrency Price FAQs

How do token launches impact market demand?

Token launches boost liquidity and attract new participants, typically benefiting the asset. Exchange listings enhance accessibility and trading activity.

What are the effects of hacks on crypto prices?

Hacks often trigger panic selling as attackers drain assets from DeFi protocols or exchange hot wallets, leading to steep price declines for affected tokens.

How do macroeconomic events influence crypto?

Federal Reserve interest rate decisions impact crypto via the US Dollar. Rate hikes typically pressure Bitcoin and altcoins, while cuts encourage risk-on sentiment.

Why is Bitcoin halving considered bullish?

Halvings reduce mining rewards, constricting supply. If demand holds steady, scarcer supply tends to drive prices higher over time.

👉 Learn About Bitcoin Layer-2 Solutions