bitcoin (btc) Layer 2 blockchain stacks (STX) have soared again after billionaire investor Tim Draper expressed his support for the emerging protocol.
Trading for just $1.18 as of 7 pm ET on Tuesday, the asset is trading at $1.53 at the time of writing, an increase of 26% since the venture capitalist's comments circulated on social media.
bitcoin migration
during a interview That same day, with Coin Bureau, Draper named Stacks the first “spectator” of a crypto project he learned more about this year.
Launched in January 2021, Stacks is a smart contract and nft-compatible blockchain that processes and settles all your transaction data on the bitcoin blockchain. It is effectively a scaling layer for btc that also enables more familiar features on other networks, such as smart contracts, decentralized applications, and NFTs.
“Most of what I've been investing in has been in things that are starting to move important applications to bitcoin,” Draper said. “I think it's a very interesting trend and we think it will develop much like Microsoft did.”
As Draper explained, Microsoft purchased and developed several Internet software applications after seeing smaller software companies succeed with them after several years of experimentation. WordPerfect, for example, a word processing application that peaked in popularity in the early 1990s, was later adopted by Microsoft as Microsoft Word.
Draper believes a similar pattern is occurring for bitcoin, with developers finding ways to port applications from newer networks like ethereum, Solana, and Tezos after they have proven to stand the test of time.
“It's starting to happen: a consolidation around bitcoin,” Draper said, adding that it has the “strongest brand” compared to other currencies.
Ignore bitcoin FUD, says Draper
Investor has long supported bitcoin as a superior alternative to fiat currency thanks to the former's superior decentralization and security. Although the network may face technical limitations that cause slow and inefficient transactions, he noted that Layer 2 innovations, such as the Lightning network, are already allaying those concerns.
“I think most of those old arguments are disappearing and new arguments of 'hey, let's standardize bitcoin' are emerging,” he said.
Earlier this year, the newly developed Ordinals protocol ushered in major nft and tokenization adoption on the bitcoin network that was once thought impossible at the base layer of the network.
The popularity of Ordinals was joined by growing interest in Stacks, whose founding team heavily supports Ordinals and whose protocol also supports bitcoin-based NFTs.
“Tim Draper is a legendary investor and seeing him excited about Stacks and bitcoin L2 made my day,” Stacks co-creator Muneeb Ali said on Tuesday.
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