Stacks, bitcoin’s largest layer-2 network, will be in the spotlight this week as the Nakamoto upgrade rollout begins.
Stacks token (STX) was trading at $1.80 on Monday, August 26, up 68% from its lowest level in August.
The token will be in the spotlight as developers begin implementing the Nakamoto upgrade, the most significant event in the platform’s history.
According to a recent post by x developers, this upgrade is expected to be a game-changer for the network. It will reduce the average transaction time from 10 minutes to just seconds, enabling new use cases such as creating liquidity stacking tokens, depositing them into decentralized finance (DeFi) applications, and borrowing in exchange for liquidity.
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Nakamoto's upgrade will also pave the way for the upcoming sBTC, an asset pegged 1:1 to bitcoin (btc). This will simplify the use of bitcoin in DeFi, non-fungible tokens (nfts), and gaming, differentiating it from Wrapped bitcoin (wBTC), which is entrusted to a single custodian. Unlike wBTC, sBTC will be decentralizedoffering features such as censorship resistance, cost-effectiveness and high security.
Once the upgrade process is complete, developers anticipate that it will attract more creators in sectors such as gaming and nfts.
Stacks, the largest layer 2 network for bitcoin, has attracted dozens of developers such as wallets, nfts, and SocialFi. Its DeFi ecosystem has amassed more than 100 million dollars in assets, with StackingDAO, ALEX, Zest and Bitflow being the most important players in the ecosystem.
Layer 2 networks have grown substantially in recent years. Arbitrum (ARB) has become the The greatest player in the industry, while networks like Base, Optimism and Blast are seeing strong momentum.
Stacks changes key support
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The STX token recovered from this month’s low of $1.0638 to $1.80. In this rally, it broke above the 50-day moving average and turned the upper side of the descending channel into a new support level.
Stacks has also moved slightly above the 61.8% retracement point. Therefore, the token may continue to rise as bulls target the 50% retracement point at $2.11, 20% above the Aug. 26 level.
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