What is expected in the development of STX?
Stacks is focused on expanding Bitcoin-based decentralized finance (DeFi) and growing its ecosystem through several key initiatives:
- Satoshi Upgrades (2025) – Improving sBTC security, enabling dual staking, and speeding up transactions.
- sBTC 21K Milestone (Q4 2025) – Increasing sBTC usage to represent 21,000 BTC locked on the platform.
- Ecosystem Funding via SIP-031 (Pending) – Proposing to raise STX token issuance to support developers and marketing.
- Ledger & WalletConnect Integration (Q3 2025) – Enhancing hardware wallet support and cross-wallet connectivity for better user experience.
Deep Dive
1. Satoshi Upgrades (2025)
Overview: The Satoshi Upgrades are designed to strengthen Stacks as a programmable layer built on Bitcoin. Key features include Dual Stacking, which allows users to stake both BTC and STX tokens to earn rewards, self-custodial sBTC minting (meaning users control their wrapped Bitcoin), and faster transactions that take less than 10 seconds (Stacks X).
What this means: This is positive for STX demand because Dual Stacking links Bitcoin inflows directly to the security of the Stacks network. However, if users find the technology too complex, adoption could slow down, which would be a downside.
2. sBTC 21K Milestone (Q4 2025)
Overview: After reaching 5,000 BTC locked in sBTC by June 2025, Stacks aims to grow this to 21,000 BTC. This growth is supported by institutional custodians like Copper and BitGo, which help securely manage these assets (Coincu).
What this means: This milestone would increase Bitcoin’s utility within the Stacks ecosystem, which is a positive sign. However, there are risks, such as potential smart contract vulnerabilities, highlighted by a recent $8.3 million exploit.
3. Ecosystem Funding via SIP-031 (Pending)
Overview: SIP-031 is a proposal to increase the annual issuance of STX tokens from 3.52% to 5.75%. The additional tokens would fund grants, marketing, and developer tools to support ecosystem growth. The community is currently voting on this proposal (Stacks Forum).
What this means: In the short term, this could raise concerns about inflation, which might be neutral or slightly negative. Over the long term, if the funds are used effectively to grow the ecosystem, this could be very positive.
4. Ledger & WalletConnect Integration (Q3 2025)
Overview: Full integration with Ledger Live will make it easier for users to participate in Stacking (staking STX), while WalletConnect support will open access to over 45 million users across 600 different wallets (Stacks X).
What this means: This should boost retail adoption by making the platform more accessible, but success depends on delivering these features on schedule.
Conclusion
Stacks is focusing on building Bitcoin-based DeFi infrastructure through technical upgrades, increasing liquidity, and improving user experience. How well sBTC adoption grows alongside STX’s utility will likely influence Stacks’ price and market position in the medium term. The key question remains: Will Stacks’ ecosystem growth outpace other Bitcoin Layer 2 solutions like Merlin?
What updates are there in the STX code base?
Stacks is making steady progress in enhancing Bitcoin’s Layer 2 capabilities through important software upgrades and growing its developer community.
- Trustless sBTC Development (August 2025) – Finalizing a way to peg Bitcoin to Stacks without relying on centralized parties.
- SIP-031 Funding Proposal (May 2025) – Increasing STX token issuance to boost developer incentives.
- Nakamoto Upgrade Integration (October 2024) – Speeding up transactions to under 10 seconds while keeping Bitcoin-level security.
- Clarity Language + Wasm Support (June 2025) – Improving smart contract performance and developer tools.
Deep Dive
1. Trustless sBTC Development (August 2025)
Overview: Stacks developers are putting the finishing touches on a fully decentralized system for sBTC, a token that represents Bitcoin on the Stacks network. This system removes the need for trusted middlemen by using advanced cryptographic techniques like zero-knowledge proofs and hash time-locked contracts (HTLCs). These allow users to convert Bitcoin to sBTC and back without handing over control to a third party.
What this means: This is a positive development for STX holders because it lowers the risk for Bitcoin owners who want to use their BTC in decentralized finance (DeFi) on Stacks. It could unlock billions of dollars worth of Bitcoin that’s currently inactive. (Source)
2. SIP-031 Funding Proposal (May 2025)
Overview: SIP-031 is a proposal to temporarily raise the annual supply of STX tokens from 3.52% to 5.75% for five years. The extra tokens will fund developer grants and infrastructure improvements to grow the Stacks ecosystem.
What this means: This move is neutral for STX’s price in the short term. While it should help the network grow faster by supporting developers, the increased token supply (about 2.23% more per year) could put downward pressure on the price if adoption doesn’t keep pace. (Source)
3. Nakamoto Upgrade Integration (October 2024)
Overview: The Nakamoto upgrade separates Stacks’ block creation from Bitcoin’s 10-minute block times. This allows Stacks to process transactions much faster—targeting under 10 seconds—while still relying on Bitcoin’s security.
What this means: This is a big win for STX because it makes apps like Bitcoin wallets and DeFi platforms more responsive and user-friendly. It also addresses previous concerns about Stacks’ scalability. (Source)
4. Clarity Language + Wasm Support (June 2025)
Overview: Developers are building a compiler that converts Clarity smart contracts into WebAssembly (Wasm). This will speed up contract execution and make it easier for developers familiar with other blockchains like Ethereum and Solana to build on Stacks.
What this means: This is positive for STX because it opens the door for more developers to join the Stacks ecosystem, while keeping Clarity’s strong security features intact. (Source)
Conclusion
With these updates, Stacks is strengthening its role as Bitcoin’s leading smart contract platform. It balances security through trustless sBTC, improves speed with the Nakamoto upgrade, and supports growth with increased developer funding. As Bitcoin DeFi on Stacks surpasses $500 million in total value locked (TVL) by August 2025, the full launch of sBTC could significantly change how Bitcoin is used in decentralized finance.
Why did the price of STX go up?
Stacks (STX) increased by 2.16% in the last 24 hours, outperforming the overall crypto market, which rose by 1.8%. This follows a strong 10.97% gain over the past week, although STX is still 14% below its highest price in the last 30 days. The main factors behind this movement are:
- Growth in BitcoinFi – More use of Stacks’ sBTC (a Bitcoin-pegged asset) and a rise in total value locked (TVL) in Bitcoin-based decentralized finance (DeFi) projects.
- Positive Technical Signals – Indicators like RSI and MACD suggest short-term strength.
- Ecosystem Improvements – Excitement around upcoming Satoshi upgrades and expanding connections with other blockchains.
Deep Dive
1. BitcoinFi Adoption (Positive Impact)
Overview: Stacks’ sBTC, which is a Bitcoin-backed token, now has over 5,000 BTC locked in it. This allows users to participate in Bitcoin-based DeFi activities such as lending and earning interest. The Nakamoto upgrade, expected in the third quarter of 2025, will speed up transactions and introduce dual staking options using both BTC and STX.
What this means: More ways to use Bitcoin on the Stacks platform increase demand for STX, which is used for governance and transaction fees. Projects like Zest, with $80 million in TVL, and Hermetica’s USDh stablecoin help make Bitcoin more productive, creating a positive cycle of growth.
What to watch: The expansion of sBTC to other blockchains like Solana and Sui through Wormhole’s NTT standard, which has been live since July 2025.
2. Technical Breakout (Mixed Impact)
Overview: The RSI (Relative Strength Index) for STX reached 72.99, nearing an overbought level, while the MACD (Moving Average Convergence Divergence) indicator turned positive. The price moved above the 50% Fibonacci retracement level at $0.7005 but faces resistance at $0.726 (the 38.2% retracement level).
What this means: Traders may cause short-term price swings, but if STX stays above $0.70, it could aim for $0.808, the recent swing high. If it falls below $0.674 (61.8% retracement), a pullback is possible.
3. Altcoin Season Tailwinds (Positive Impact)
Overview: The CoinMarketCap (CMC) Altcoin Season Index rose to 71, up 34% in a week, indicating more investment flowing into riskier cryptocurrencies. STX’s weekly gain of 10.97% beats Bitcoin’s 1.8% and Ethereum’s 2.1%.
What this means: Investors are focusing on Bitcoin Layer 2 solutions, with Stacks leading in developer activity and Bitcoin-related applications.
Conclusion
STX’s recent rise reflects growing adoption of BitcoinFi, strong technical signals, and favorable market conditions for altcoins. However, the 14% drop from its 30-day high shows that volatility remains a risk. Key points to watch: Will sBTC adoption continue to drive demand for STX after the upcoming upgrade? Keep an eye on Bitcoin DeFi TVL and whether STX can maintain support above $0.70.
What could affect the price of STX?
The price of Stacks (STX) depends largely on how Bitcoin DeFi adoption grows, how the Stacks ecosystem develops, and upcoming network upgrades.
- sBTC Growth – Trustless integration of Bitcoin could unlock over $500 billion in Bitcoin liquidity (Stacks).
- Roadmap Progress – Faster transactions and incentives for developers may boost adoption (CoinMarketCap).
- Competition Risks – Other Bitcoin Layer 2 solutions like Rootstock pose challenges to Stacks’ market position (Maestro).
Deep Dive
1. sBTC Adoption & Bitcoin Integration (Positive Outlook)
Overview:
The Nakamoto upgrade on Stacks introduced sBTC, a decentralized way to peg Bitcoin to the Stacks network. This allows Bitcoin to be used in smart contracts. Currently, over 5,000 sBTC (about $345 million) are in use, with plans to increase to 21,000 sBTC. Partnerships like Copper’s institutional custody and cross-chain bridges such as Wormhole make it easier for users to access sBTC.
What this means:
As more sBTC is used, demand for STX grows because STX is needed for transaction fees, earning stacking rewards, and securing the network through Proof of Transfer (PoX). If the amount of Bitcoin locked on Stacks increases by 10%, STX’s price could rise proportionally.
2. Ecosystem Growth vs. Layer 2 Competition (Mixed Outlook)
Overview:
Stacks currently leads Bitcoin Layer 2 solutions with $161 million in total value locked (TVL) and over 600 active developers each month. However, competitors like Babylon (with $4.8 billion BTC staked) and Liquidium (with $500 million in lending volume) are also vying for dominance in Bitcoin-based decentralized finance (BitcoinFi).
What this means:
Stacks benefits from being an early leader with projects like Zest Protocol and Velar, which supports positive momentum. But if Stacks loses more than half of the market share in Bitcoin Layer 2 TVL, STX’s growth potential could be limited as investment spreads across multiple platforms.
3. Regulatory & Economic Risks (Cautious Outlook)
Overview:
Stacks has SEC-qualified status, which adds credibility in terms of compliance. Still, broader cryptocurrency regulations—such as increased oversight on stablecoins—could slow down BitcoinFi adoption. Additionally, rising U.S. Treasury yields may put pressure on alternative cryptocurrencies like STX.
What this means:
If regulators crack down on Bitcoin DeFi or if investors become more risk-averse for an extended period, STX’s price could suffer. For context, STX has seen a -57% annual return compared to Bitcoin’s +22% as of September 2025.
Conclusion
The future price of Stacks depends on how well it executes its Bitcoin DeFi plans while managing competition from other Layer 2 solutions and navigating economic and regulatory challenges. A key indicator to watch is the circulating supply of sBTC—if it surpasses 10,000 sBTC (around $690 million), it could signal growing network use. The big question remains: will Stacks become the go-to platform for earning yields on Bitcoin, or will competitors divide the market?
What are people saying about STX?
Conversations around Stacks (STX) are swinging between excitement over earning Bitcoin rewards and concerns about exchange disruptions. Here’s what’s trending right now:
- Earning Bitcoin by stacking STX offers a 9.94% annual yield, boosting positive outlooks.
- Temporary exchange suspensions at platforms like Upbit and Bithumb have caused short-term price ups and downs.
- Roadmap updates highlight new features like sBTC integration and plans to expand Bitcoin-based decentralized finance (DeFi).
Deep Dive
1. Stacking STX to Earn Bitcoin Rewards — Positive Signal
Stacks recently shared that stacking STX tokens has delivered an average annual yield of 9.94% in Bitcoin over the last 20 reward cycles.
– @Stacks on X (formerly Twitter)
What this means: This shows STX’s unique ability to generate Bitcoin income, which may attract investors looking for Bitcoin-denominated returns—even though STX’s price has dropped about 57% over the past year.
2. Exchange Suspensions Impact Market Sentiment — Negative Pressure
According to CoinJournal, STX’s price fell 11.4% in one week after Bithumb paused transactions for network upgrades, despite a 15% gain over the previous month.
– Read more on CoinJournal
What this means: Temporary halts on exchanges, which often happen during system upgrades, can cause short-term liquidity issues and price swings. This creates a tug-of-war between cautious traders and optimistic developers focused on long-term improvements.
3. Growing Adoption of sBTC Boosts Bitcoin DeFi Potential — Positive Outlook
The StackingDao team reported that 25 million STX tokens have been moved into stSTXbtc since January, earning daily rewards in sBTC (a Bitcoin wrapper).
– @StackingDao on X
What this means: Increasing use of trustless Bitcoin wrappers like sBTC could strengthen STX’s role in Bitcoin-based decentralized finance. However, STX’s price has still declined about 13.7% over the past 30 days despite this growth.
Conclusion
The outlook for STX is mixed. On one hand, its Bitcoin-native yield features and ongoing development around sBTC and faster block times (Nakamoto upgrade) suggest potential for growth. On the other hand, exchange-related disruptions and recent price declines highlight risks. Investors should watch for when Bithumb resumes STX deposits after upgrades, as this could influence short-term price movements. Meanwhile, STX needs to maintain its recent 10.24% gain over 90 days amid shifting interest in alternative cryptocurrencies.
What is the latest news about STX?
Stacks is carefully growing its Bitcoin-focused decentralized finance (DeFi) ecosystem while managing risks. Here are the latest highlights:
- StackingDAO sBTC Growth (September 8, 2025) – 25 million STX tokens locked to earn Bitcoin-based rewards, showing strong DeFi interest.
- Utility vs. Hype Comparison (September 3, 2025) – Stacks stands out for real technical value compared to hype-driven competitors.
- BitcoinFi TVL Milestone (August 7, 2025) – Stacks’ total value locked (TVL) in Bitcoin DeFi surpasses $10 billion.
In-Depth Look
1. StackingDAO sBTC Growth (September 8, 2025)
What happened: Since January 2025, StackingDAO’s stSTXbtc pool has locked 25 million STX tokens (worth about $17.35 million). This lets users earn daily rewards in synthetic Bitcoin (sBTC), a digital asset that mimics Bitcoin’s value.
Why it matters: Locking STX tokens reduces the number available for trading, which can support the token’s value. More importantly, this shows growing interest in earning Bitcoin-like rewards through Stacks’ smart contracts. The sBTC feature connects Bitcoin’s liquidity with Stacks’ platform, potentially attracting more Bitcoin holders.
(StackingDAO)
2. Utility vs. Hype Comparison (September 3, 2025)
What happened: A recent analysis by Bitrue compared Stacks’ real-world Bitcoin-layer functions with meme coins like XXX Coin, which rely mostly on hype. Stacks was praised for its Nakamoto upgrade, sBTC peg, and $113 million in TVL.
Why it matters: This highlights Stacks as a project focused on solid technology and real use cases, rather than speculation. However, market trends favoring risky, hype-driven tokens could temporarily overshadow projects like Stacks that emphasize utility.
(Bitrue)
3. BitcoinFi TVL Milestone (August 7, 2025)
What happened: According to Maestro’s BitcoinFi report, Stacks’ TVL more than doubled in the second quarter of 2025, adding around 2,000 BTC. The ecosystem now holds about $5.52 billion in TVL related to scaling and Layer 2 solutions.
Why it matters: This growth shows increasing adoption of Stacks’ Bitcoin DeFi services. Still, competition remains strong from Ethereum Layer 2 platforms and Bitcoin sidechains like Hemi, which has nearly $1 billion in TVL.
(CoinMarketCap)
Conclusion
Stacks is steadily advancing Bitcoin DeFi by integrating sBTC and expanding its infrastructure. While this strengthens its position, the project faces challenges from its dependence on Bitcoin’s market narrative and competition from speculative assets. The key question: can growing Bitcoin liquidity on Stacks balance out the market’s pull toward riskier altcoins?