Why did the price of STX go up?

Stacks (STX) increased by 0.24% over the past 24 hours, reaching $0.661, slightly underperforming the overall crypto market’s 0.42% gain. The main factors behind this movement include:

1. Cross-Chain Expansion – Stacks’ Bitcoin-pegged asset (sBTC) and STX token are now available natively on the Sui blockchain through Wormhole’s Native Token Transfer (NTT) standard (Foresight News).
2. Liquidity Innovations – Stacking DAO launched liquid staking tokens (LSTs) for STX, unlocking new decentralized finance (DeFi) liquidity options (Stacking DAO).
3. Technical Resilience – STX price remains above a key support level at $0.653, with technical indicators suggesting possible bullish momentum.

Deep Dive

1. Cross-Chain Expansion (Positive Impact)

What happened:
Stacks has extended its Bitcoin-backed asset (sBTC) and STX token to the Sui blockchain and others using Wormhole’s NTT standard. This is the first time sBTC and STX have been deployed natively across multiple blockchains, increasing their usability and liquidity beyond the Bitcoin network.

Why it matters:

• More demand: By working across different blockchains, STX and sBTC can reach Sui’s decentralized finance ecosystem, which holds about $1.2 billion in total value locked (TVL), and attract new users.
• BitcoinFi growth: This move strengthens Stacks’ position as a platform that adds smart contract capabilities to Bitcoin, supporting reports that Stacks’ TVL has doubled to around 2,000 BTC as of Q2 2025.

What to watch: Adoption rates on Sui and other blockchains in the future.

2. Liquid Staking Breakthrough (Positive Impact)

What happened:
Stacking DAO introduced the first liquid staking tokens (LSTs) for STX. These tokens let users earn Bitcoin rewards while still being able to use their staked assets in DeFi applications. Since January 2025, over 25 million STX (worth about $16.5 million) have been deposited into stSTXbtc pools.

Why it matters:

• Better capital use: Liquid staking reduces the opportunity cost of locking up STX, attracting investors looking for yield.
• Network growth: LSTs can increase Stacks’ TVL, currently at $1.19 billion, by allowing staked tokens to be used in DeFi platforms like ALEX and Bitflow.

3. Technical Resilience (Mixed Signals)

What happened:
Despite a 24% drop over the past 60 days, STX price remains above a key support level at $0.653 (the 50% Fibonacci retracement). The MACD indicator has turned positive, suggesting potential upward momentum, but the RSI remains neutral at 48.

What this means:

• Positive signs: The rising MACD hints at a short-term shift toward buying pressure. If STX breaks above $0.685 (the 23.6% Fibonacci level), it could target $0.713 next.
• Risks: If the $0.653 support fails, the price might retest lows near $0.592 from June.

Conclusion

STX’s modest price increase reflects steady progress in expanding cross-chain capabilities and staking options. However, broader market challenges, including a 24% drop in crypto trading volumes, limit stronger gains. The key question is whether STX can hold above the $0.685 resistance level to confirm a positive trend reversal. Keep an eye on sBTC adoption on Sui and growth in TVL driven by liquid staking tokens.

What could affect the price of STX?

Stacks’ price is currently caught between the growing use of Bitcoin-based decentralized finance (DeFi) and the risks from increased token supply.

1. sBTC Adoption – Using Bitcoin in DeFi without middlemen could unlock billions in Bitcoin liquidity (Positive)
2. Emission Increases – A network upgrade (SIP-031) will raise STX token supply by about 63% over five years (Negative)
3. Bitcoin Dependency – Benefits from altcoin market trends balanced against Bitcoin’s price swings (Mixed)

Deep Dive

1. sBTC Expansion & DeFi Growth (Positive Impact)

Overview:
Stacks offers a trustless way to peg Bitcoin (called sBTC), allowing Bitcoin to be used in DeFi applications without relying on custodians. Already, over 5,000 BTC worth of sBTC is in use. Upcoming updates will increase sBTC’s capacity and connect it with other blockchain networks through tools like Wormhole (CoinMarketCap), enabling easier movement of assets across chains.

What this means:
More sBTC use means higher demand for STX tokens, which are needed to process transactions and keep the network secure. If sBTC reaches its goal of 21,000 BTC, STX could see steady demand driven by real use cases.

2. Token Emission Risks (Negative Impact)

Overview:
The SIP-031 upgrade temporarily raises the annual supply increase of STX tokens from 3.52% to 5.75% until 2030 to support ecosystem growth. This means about 179 million new STX tokens (around 10% of the current supply) will enter circulation.

What this means:
More tokens in circulation can reduce the value of each STX if demand doesn’t keep up. However, the extra funds aim to help the network grow faster, which could balance out the negative effects of inflation.

3. Bitcoin Correlation & Altcoin Season (Mixed Impact)

Overview:
STX’s Proof-of-Transfer system links it closely to Bitcoin’s security and price movements. Bitcoin’s market dominance has slightly decreased to 56.99% from 58.75% last month, while the Altcoin Season Index is high at 79/100, signaling a favorable environment for alternative cryptocurrencies.

What this means:
If Bitcoin’s price rises above $70,000, it could boost STX by increasing interest in Bitcoin-based DeFi. On the other hand, if Bitcoin’s price drops, STX could continue to face downward pressure, as seen in its recent 25% decline over 60 days.

Conclusion

The future of STX depends on whether the growth in sBTC usage can outpace the negative effects of increased token supply. Bitcoin’s price movements will add volatility to this balance. With Stacks ranking among the top 20 blockchain ecosystems for developer activity (according to Electric Capital), the key question is whether its Bitcoin-linked technology can create lasting demand before inflation impacts the token’s value. Keep an eye on the sBTC-to-Bitcoin ratio and STX token burn rates after the Nakamoto upgrades.

What are people saying about STX?

Conversations around Stacks (STX) are swinging between excitement about Bitcoin-based decentralized finance (DeFi) and concerns over exchange issues. Here’s what’s trending right now:

1. Stacking DAO’s liquid staking tokens (LSTs) increase liquidity – positive for STX
2. Upbit exchange pauses STX deposits – negative impact short-term
3. Expansion of sBTC across multiple blockchains – positive for STX

Deep Dive

1. @StackingDao: LSTs help grow Bitcoin DeFi on Stacks

"25 million STX moved into stSTXbtc [...] boosting Bitcoin supply growth"
– @StackingDao (12.3K followers · 58K impressions · Sept 12, 2025)
View original post
What this means: This is good news for STX. Liquid staking tokens (LSTs) allow users to earn rewards while keeping their assets flexible. This attracts Bitcoin holders who want to earn yield through the Stacks ecosystem, improving overall liquidity and activity.

2. @Stacks: Townhall highlights key upgrades

"Updates on SIP-031, sBTC, and incentive programs"
– @Stacks (387K followers · 1.2M impressions · July 15, 2025)
View original post
What this means: This is cautiously optimistic. The planned improvements could make the Stacks network more useful and efficient. However, there are risks involved in implementing these technical upgrades on Bitcoin’s Layer 2 network.

3. CoinJournal: Bithumb exchange halts STX transactions, causing selloff

"STX price fell 11.4% in one week after the exchange stopped services"
– CoinJournal (July 25, 2025)
View original post
What this means: This is a short-term negative for STX because fewer places to trade reduce liquidity. However, such pauses often happen before network upgrades, which could lead to improvements down the line.

Conclusion

The outlook for STX is mixed. On one hand, there’s strong potential for Bitcoin-based DeFi growth, especially with sBTC expanding across blockchains via Wormhole. On the other hand, operational challenges like exchange suspensions create uncertainty. Traders are watching for exchanges to resume STX deposits and are interested in the attractive 9.94% stacking annual percentage yield (APY) (source). Keep an eye on sBTC adoption—it acts as a bridge connecting Bitcoin’s massive market value (over $1 trillion) with Stacks’ smart contract capabilities, which could significantly influence STX’s value floor.

What is the latest news about STX?

Stacks is driving the growth of decentralized finance (DeFi) on Bitcoin while working on important technical upgrades and managing risks in its ecosystem. Here’s the latest update:

1. BitcoinFi TVL Surpasses $10 Billion (August 10, 2025) – Stacks’ Layer-2 technology supports Bitcoin’s expanding DeFi market.
2. Townhall Announces Core Upgrades (August 13, 2025) – Improvements like faster transactions and better developer tools aim to increase adoption.
3. 25 Million STX Added to stSTXbtc Pool (September 8, 2025) – Shows rising interest in earning Bitcoin-based rewards through Stacks.

Deep Dive

1. BitcoinFi TVL Tops $10 Billion (August 10, 2025)

Overview: The total value locked (TVL) in BitcoinFi protocols has reached $10 billion, according to Maestro’s report. In the second quarter, Stacks contributed about 2,000 BTC (around $118 million) to Layer-2 scaling solutions, helped by its Nakamoto upgrade and the growing use of sBTC (a Bitcoin-based token).

What this means: This is a positive sign for STX as Bitcoin’s DeFi ecosystem gains momentum. However, Ethereum still leads with a TVL of $116 billion, highlighting Stacks’ smaller but specialized role. Future growth depends on attracting stablecoins and institutional investors.

2. Townhall Outlines Core Upgrades (August 13, 2025)

Overview: At a recent Townhall meeting, Stacks shared plans for upgrades including transaction speeds under 10 seconds, enhancements to the Clarity smart contract language, and easier Stacking processes to improve the experience for developers and users (source).

What this means: These updates are cautiously optimistic. Faster transactions could make Stacks competitive with Ethereum’s Layer-2 solutions, but there are risks in delivering these improvements. Making Stacking simpler might encourage more users to lock up STX tokens, though relying on Bitcoin’s security means some trade-offs in scalability.

3. 25 Million STX Inflow into stSTXbtc Pool (September 8, 2025)

Overview: More than 25 million STX tokens (valued at $16.45 million) have been added to StackingDAO’s stSTXbtc pool this year. This pool allows users to earn sBTC rewards through a non-custodial Stacking process (source).

What this means: This is a positive indicator for STX demand because locking tokens reduces selling pressure. However, having a large amount of liquidity concentrated in one pool could pose risks if security issues arise.

Conclusion

Stacks is building a unique DeFi space by leveraging Bitcoin’s strong security, but it faces challenges from competition and technical hurdles. The big question remains: will trustless sBTC tokens outperform wrapped Bitcoin options on Ethereum?

What is expected in the development of STX?

Stacks is moving forward with key updates:

1. sBTC Expansion & New Bridges (Q4 2025) – Increasing Bitcoin-backed sBTC liquidity and adding new cross-chain bridges.
2. Clarity 2.0 & Wasm Support (2026) – Upgrading the smart contract language to attract more developers.
3. Stacking User Experience Update (Q1 2026) – Making it easier for users to earn Bitcoin rewards.

In-Depth Look

1. sBTC Expansion & New Bridges (Q4 2025)

What’s Happening:
Stacks plans to grow sBTC, which is a decentralized way to represent Bitcoin on its platform, beyond the current 5,000 BTC limit (Stacks X post, June 2025). They’re also working on connecting with other blockchain networks through bridges like Axelar and another major bridge to improve how Bitcoin-related assets move across different blockchains. This targets Bitcoin’s large market, which is valued at over $2 trillion (The Defiant, July 2025).

Why It Matters:
This is positive for STX because more sBTC use means more demand for Stacks’ Bitcoin-based decentralized finance (DeFi) services. However, there are technical challenges to keep the system decentralized while scaling up.

2. Clarity 2.0 & Wasm Support (2026)

What’s Happening:
Stacks will upgrade its smart contract language, Clarity, to version 2.0, adding support for WebAssembly (Wasm). Wasm is a technology that allows faster and more efficient applications. This upgrade aims to attract developers from other popular platforms like Ethereum and Solana (Stacks X post, June 2025).

Why It Matters:
This could be good for STX as better tools might lead to more apps and activity on Stacks. But switching to the new system might be tricky for some developers, which could slow things down at first. The real impact depends on how many developers start using the new features.

3. Stacking User Experience Update (Q1 2026)

What’s Happening:
Stacks plans to improve the way users earn Bitcoin rewards through “stacking.” Updates include automatic renewal (so users don’t have to manually renew), removing waiting periods, and making pool participation simpler (Stacks X post, June 2025).

Why It Matters:
These changes make it easier for Bitcoin holders to earn rewards, which could increase demand for STX. However, if many users sell their rewards quickly, it might cause short-term price pressure.

Conclusion

Stacks is focused on unlocking Bitcoin’s potential through DeFi by scaling sBTC and improving developer tools in 2025-26. While there are risks in delivering these upgrades, success could make STX a key link between Bitcoin’s value and programmable blockchain features. It will be interesting to see how other Bitcoin Layer 2 solutions like RSK respond to these developments.

What updates are there in the STX code base?

Stacks is advancing Bitcoin DeFi with important upgrades and expanding across multiple blockchains.

1. Satoshi Upgrades (July 2025) – Introducing Dual Stacking, fee abstraction, and self-custodial sBTC minting.
2. SIP-031 Funding Proposal (May 2025) – Temporary increase in STX token emissions to boost ecosystem growth.
3. sBTC Cross-Chain Expansion (July 2025) – Launching native support on Sui and Solana blockchains using Wormhole’s NTT standard.

Deep Dive

1. Satoshi Upgrades (July 2025)

What’s new: These upgrades make it easier for users to earn rewards by staking either Bitcoin (BTC) or Stacks tokens (STX). They also allow users to pay transaction fees using sBTC, a Bitcoin-pegged asset, instead of STX tokens.

• Dual Stacking: Lets users stake both BTC and STX together, earning up to 3% BTC rewards while helping secure the network.
• Fee Abstraction: Users can now pay fees in sBTC, creating a more native Bitcoin experience.
• Self-Custodial sBTC Minting: Users can mint sBTC without relying on third parties, increasing security and control.
  Why it matters: These features encourage Bitcoin holders to join the Stacks ecosystem and increase liquidity, which is positive for STX’s value. (Source)

2. SIP-031 Funding Proposal (May 2025)

What’s new: This proposal suggests raising the annual supply of STX tokens from 3.52% to 5.75% for five years to fund ecosystem growth.

• The extra tokens would create a fund to support grants, developer tools, and infrastructure improvements.
• While this could cause short-term inflation and selling pressure, the goal is to attract more developers and projects for long-term growth.
  Why it matters: This is a neutral development for STX. The increased token supply might temporarily lower prices, but it could also lead to a stronger ecosystem if approved by governance. (Source)

3. sBTC Cross-Chain Expansion (July 2025)

What’s new: sBTC and STX tokens can now move natively to other blockchains like Sui and Solana using Wormhole’s Native Token Transfers (NTT).

• This avoids the need for wrapped tokens, allowing direct use of sBTC in DeFi applications on these chains.
• Over $500 million worth of BTC is already active in Stacks-based DeFi apps such as Bitflow and Arkadiko.
  Why it matters: This expansion opens up Bitcoin DeFi to a much larger market, potentially unlocking value from the $2 trillion of Bitcoin that is currently inactive. It’s a positive sign for STX’s growth. (Source)

Conclusion

Stacks is strengthening its position as Bitcoin’s programmable layer by focusing on scalability, funding, and cross-chain liquidity. The emphasis on sBTC and developer incentives shows a clear strategy to unlock Bitcoin’s DeFi potential. The big question remains: how will these updates help Stacks compete with Ethereum Layer 2 solutions in the Bitcoin ecosystem?