Huge Popularity of Ordinals NFTs and Upcoming Stacks Upgrade Helps $STX to Go Up 328% YTD

Chris Burniske, Partner at venture capital firm Placeholder, has claimed that the release of Stacks’ upcoming features will enhance Bitcoin’s programmability, which will benefit Stacks ($STX), “an open-source platform to enable smart contracts, DeFi, NFTs, and apps for Bitcoin.” 

According to a Twitter thread posted by Burniske on February 26, applications built on top of Stacks will enable more programmable use of Bitcoin, and its upcoming releases will provide trustless BTC to the STX L2 with the introduction of hyperchains, allowing high-throughput and low-latency applications.

Burniske also pointed out that although L2s on Ethereum are currently booming, Stacks has little competition due to the community giving up on Bitcoin’s programmability. Meanwhile, he says, the largest L2 on Ethereum is Polygon, which has a fully-diluted network value (FD NV) of $12.4 billion or 6.4% of Ethereum’s NV, whereas Stacks has an FD NV of $1.36 billion or 0.28% of Bitcoin’s NV.

Burniske believes that a repricing to be on par with Polygon’s relative valuation to its L1 would suggest a potential ~23X increase in STX value, which does not take into account Bitcoin price appreciation.

He concluded by disclosing that his firm holds $STX tokens.

Currently (as of 2:20 p.m. UTC on February 27), $STX is trading around $0.921, up 23.17% in the past 24-hour period and up an incredible 328.30% in the year-to-date period.

On Saturday (February 25), North Rock Digital founder Hal Press posted a Twitter thread that suggested he is very excited about Stacks:

He went on to say:

This is the most excited we’ve been about a trade idea in a long time, as we believe $STX represents the best asymmetric upside opportunity in the market over the next 12 months. The foundation has been laid over the past few years and now the environment is right for Stacks to begin reaping the benefit. As we have gone deeper into the ecosystem it has been exciting to see what is being built, NRD will be looking to take a more active role going forward.

On 6 February 2023, Dr. Muneeb Ali, who is the co-creator of Stacks, commented on the currently hot topic of Bitcoin NFTs. Dr. Ali had this to say about the Ordinals protocol, which supports on-chain Bitcoin-native NFTs.

On 14 February 2023, James Killick wrote an article for “Start With NFTs” that explained the differences between Stacks NFTs and Ordinals:

  • Inscriptions store all content immutably—rendering it impossible to remove any unauthorized or inappropriate material.
  • When the transaction size increases, nodes may be required to pay higher fees and experience increased demands.
  • As a consequence of the soaring acceptance of ordinals, the average block size has amplified, meaning greater fees per block. This could have an incredibly unfavourable impact on the Bitcoin community if it continues to grow exponentially.
  • The recent NFTs and media on Bitcoin have already taken up a shocking 500 megabytes of storage, costing creators over 6 BTC (around $155K) in no time. That’s an incredible amount of money for such little memory!

Image Credit

Featured Image via Pixabay

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