Over the last month, Stacks (STX) has been on a tremendous rally. The coin emerged as one of the top gainers, rallying upwards even at a time when the broader crypto market was suffering from low momentum. Even now, the cryptocurrency continues to trade in the green, but what’s driving these gains?
Bitcoin Ordinals Supercharge Stacks
By now, most, if not all, of the crypto industry participants have heard of Bitcoin Ordinals. These Bitcoin NFTs that came with the taproot upgrade allowed for inscriptions on the blockchain. And just like any ‘new’ development in the crypto space, the value of these bitcoin ordinals NFTs surged rapidly.
Stacks (STX) which is a project that is working toward bringing the full functionality of decentralized finance (DeFi), non-fungible tokens (NFTs), decentralized applications (DApps), and smart contracts to the Bitcoin blockchain was uniquely positioned to benefit from this newfound popularity.
The popularity of Ordinals saw attention shifted to Stacks for those who wanted to play the cryptocurrency narrative. As a result, Stacks’ price is up by almost 200% in the last month alone. The majority of these gains were actually recorded in the last week as multiple large buys were recorded for Ordinals.
In the last seven days, the price of STX is seeing gains of over 150%. The coin has also rallied on the 24-hour chart with more than 32% gains to bring its price above $0.85.
STX rallies over 180% in one month | Source: STXUSD on TradingView.com
Can STX Continue To Rally?
The Stacks (STX) rally coincides with a time when NFTs seem to be making a comeback in the market. This is propelled further by the fierce rivalry between the Blur and OpenSea NFT marketplaces, so the month of February has been incredibly bullish for STX.
When it comes to the question of whether STX will continue on its rally, it could all depend on the market movements. Bitcoin is currently still trending below the $25,000 resistance level. So with such low momentum, the broader crypto market is already seeing a slowdown.
STX on one hand may be resisting this slowdown, but once the expected correction happens, then it is possible the cryptocurrency will fall in line with the other digital assets in the space. When this happens, it could put an end to the daily double-digit gains for the asset.
On the flip side, if something were to trigger another rush toward Bitcoin Ordinals, or maybe Bitcoin DeFi, then STX stands to gain more than any other asset. In this case, the rally is expected to continue, and the $1 price level floats into view.
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from Business Today, chart from TradingView.com
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