STX price jumps amid market downturn following Nakamoto upgrade approval

Bitcoin layer 2 network Stacks (STX) was trending on Google after the network’s Nakamoto upgrade received widespread approval.

According to the Stacks Foundation, the upgrade was approved by every voter who had Stacked STX, and 99.98% of the votes cast by those who were not stackers supported the proposal as well.

As a result of this community endorsement, the Nakamoto Testnet is slated to go live on March 25, 2024. The next two phases are already scheduled for April 15–29 for the Nakamoto Mainnet (Instantiated) and May 15–29 for the Nakamoto Mainnet (Activated).

The project’s white paper states that the upgrade is expected to bring significant improvements to the network. These include quicker block times, guaranteed Bitcoin transaction finality, reduced forking risks, and a decrease in the maximum extractable value (MEV) associated with Bitcoin transactions.

Furthermore, a trust-minimized iteration of Bitcoin called sBTC, specifically designed for the Stacks ecosystem, will be implemented as part of the upgrade. This update is expected to improve the DeFi experience on Stacks to match the capabilities and appeal of other major platforms.

The Stacks Foundation has pushed for community involvement in the testnet to drive development and gather feedback that is crucial to the mainnet’s success.

The price of STX also skyrocketed, rising more than 13% on Wednesday morning following the approval.

Although the price of Bitcoin (BTC) fell to levels below $61,000, STX hit an intraday high of $2.96. The token continued to move in the direction of its all-time high of $3.47, which was reached on March 11, 2024.

Stacks grew significantly in 2023, according to a Messari analysis. The study showed that the total value locked (TVL) in the project increased by 363% on a quarterly basis and by 773% on an annual basis, reaching $61 million. More impressively, average daily miner revenue also increased by 1,015% annually to $78,000.

Analysts are optimistic about STX’s prospects, with some expecting the price to reach $45 in the next few years. As of the publication of this report, STX was trading at $2.93, reflecting a twenty-four-hour gain of 8.2%.