Why did the price of STX fall?
Stacks (STX) dropped 1.43% in the last 24 hours, adding to a 13% decline over the past week. The main reasons are:
- Technical breakdown – STX prices fell below important support levels, with indicators showing the coin might be oversold.
- Stacking yield disruption – A problem with delegation caused rewards for liquid staking derivatives to drop sharply, reducing demand.
- Market-wide caution – The Crypto Fear & Greed Index is at 34 ("Fear"), putting pressure on alternative cryptocurrencies like STX.
Deep Dive
1. Technical Breakdown (Negative Impact)
STX’s price fell below its 30-day and 200-day simple moving averages (SMA), which are key technical indicators used to track price trends. This triggered automated selling by trading algorithms. The Relative Strength Index (RSI) is at 36.41, below the neutral 50 level, showing bearish momentum but also suggesting the coin might be oversold. Resistance was seen at $0.6128, but buyers couldn’t hold that level on September 27.
What this means: When prices drop below these long-term averages, short-term traders often expect further declines and sell. However, since the RSI suggests oversold conditions, there could be a chance for buyers to step in near the $0.557 support level.
2. Stacking Yield Disruption (Negative Impact)
On September 9, StackingDAO announced that failed delegations caused a 66% cut in yields for stSTXbtc, a liquid staking derivative, for one reward cycle. Native STX stacking wasn’t affected, but this event exposed risks in Stacks’ Proof-of-Transfer (PoX) system.
What this means: Liquid staking derivatives like stSTXbtc allow users to earn Bitcoin rewards while keeping their STX tokens liquid (easily tradable). A big drop in yields may lead holders to sell their STX instead of locking it up for rewards.
3. Overall Crypto Market Sentiment (Mixed Impact)
The total cryptocurrency market cap fell slightly by 0.03% in 24 hours. STX underperformed due to its technical weaknesses and protocol-specific issues. Bitcoin’s market dominance rose to 57.83%, indicating investors are moving money away from altcoins like STX.
What to watch: If Bitcoin’s price can sustain a rally above $112,000, it might renew interest in altcoins. However, STX needs to hold above $0.557 to avoid triggering more forced selling.
Conclusion
STX’s recent decline is driven by a combination of technical factors, staking reward concerns, and cautious market sentiment. Despite these challenges, the project’s core Bitcoin DeFi features remain strong, with over $600 million worth of Bitcoin deployed through sBTC. Short-term traders, however, are factoring in risks related to execution and rewards.
Key point: Watch if STX can maintain support at $0.557. If it breaks below this level, the next test could be the 2025 low near $0.47. Also, keep an eye on StackingDAO’s upcoming reward cycle on October 1 for signs of yield recovery.
What could affect the price of STX?
The price of Stacks (STX) depends largely on Bitcoin’s growth in decentralized finance (DeFi) and upcoming network improvements.
- Satoshi Upgrades – Making Bitcoin more programmable could increase STX’s usefulness.
- sBTC Adoption – A new way to wrap Bitcoin securely might attract big investors.
- Stacking Incentives – Lower rewards could reduce demand for STX, despite a strong historical yield of 9.94% APY.
Deep Dive
1. Protocol Upgrades & BitcoinFi Growth (Positive Outlook)
Overview:
The upcoming Satoshi Upgrades are designed to make Stacks the smart contract layer for Bitcoin. These upgrades will speed up transactions to under 10 seconds (compared to Bitcoin’s 10-minute blocks), allow users to mint sBTC (a Bitcoin-backed token) without relying on third parties, and let users pay transaction fees directly in Bitcoin. Already, more than $600 million worth of Bitcoin is active within the Stacks ecosystem.
What this means:
Faster transactions and easy Bitcoin integration could unlock Bitcoin’s potential for DeFi applications, increasing the demand for STX as the token used to pay fees (“gas”). For example, after a similar roadmap announcement in May 2025, STX’s price rose by 35%.
2. Institutional sBTC Demand (Mixed Outlook)
Overview:
sBTC is a Bitcoin-backed asset on the Stacks network. It has been adopted by custodians like Copper and protocols such as Sui. However, only about 5,000 BTC (0.02% of total Bitcoin supply) has been bridged to Stacks so far, showing there’s a lot of room for growth.
What this means:
If regulated investment products, like the London Stock Exchange’s Bitcoin staking exchange-traded product (ETP), start using sBTC, it could boost STX’s utility. On the other hand, competition from other wrapped Bitcoin tokens like WBTC, which currently holds $860 million in total value locked (TVL), could split the market.
3. Stacking Dynamics & Yield Pressures (Potential Risks)
Overview:
STX holders can earn about 10% annual yield paid in Bitcoin by “Stacking” their tokens. However, recent issues with delegation have caused yield drops. Additionally, liquid staking tokens like stSTXbtc now make up 24% of all stacked STX, which could lead to selling pressure.
What this means:
If yields remain unstable, it could weaken one of STX’s main attractions. It’s important to watch the Stacking participation rate, which currently shows 25 million STX locked in the process.
Conclusion
The future price of Stacks depends on successfully rolling out upgrades that keep it ahead of other Bitcoin Layer 2 solutions while keeping Stacking rewarding. Short-term price swings are expected, but if sBTC adoption grows, STX could benefit from a major increase in Bitcoin liquidity. Will Stacks’ transaction speeds beat Ethereum’s by 2026?
What are people saying about STX?
Conversations around Stacks (STX) are swinging between excitement over earning Bitcoin rewards and concerns about recent technical issues. Here’s what’s trending:
- Stacking STX to earn Bitcoin – A 9.94% annual yield is attracting long-term holders
- SIP-031 vote – Governance discussions sparked an 11.7% price jump
- Exchange suspensions – Bithumb’s pause on deposits and withdrawals caused an 11.4% weekly price drop
Deep Dive
1. @Stacks: Stacking STX to Earn Bitcoin Rewards (Positive Outlook)
“Stacking STX to earn BTC yielded an average of 9.94% APY over the last 20 cycles”
– @Stacks (1.2M followers · 12.4K impressions · July 17, 2025, 9:00 PM UTC)
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What this means: Stacking allows STX holders to lock up their tokens and earn Bitcoin as a reward. This feature encourages people to hold their STX long-term, which could help stabilize its market value (currently about $1.03 billion) if more users participate.
2. Cryptonewsland: SIP-031 Governance Vote Sparks Interest (Positive Outlook)
On June 25, 2025, STX’s price jumped 11.7% ahead of the SIP-031 vote. This proposal aims to increase the protocol’s token emissions to 5.75% per year to support ecosystem growth (source). The price hit resistance at $0.7387, indicating traders are waiting to see the vote’s outcome before making further moves.
3. CoinJournal: Impact of Bithumb Exchange Suspension (Negative Outlook)
STX’s price fell 11.4% over the week after Bithumb, a major exchange, paused deposits and withdrawals on July 29 for network upgrades. While such pauses are normal during maintenance, the timing added to selling pressure amid a generally cautious crypto market (CoinMarketCap Fear & Greed Index at 34).
Conclusion
The outlook for STX is mixed. On one hand, the ability to earn Bitcoin through stacking is attracting users interested in decentralized finance (DeFi) on Bitcoin. On the other hand, technical challenges and exchange-related disruptions are causing short-term uncertainty. Keep an eye on the adoption of sBTC (with over 5,000 BTC already bridged), which shows how much Stacks is being used beyond just speculative trading. Overall, the idea of Stacks as a Bitcoin Layer 2 solution remains strong, but exchange liquidity issues pose a near-term risk.
What is the latest news about STX?
Stacks is making strides in expanding Bitcoin-based decentralized finance (DeFi) and gaining interest from institutions, despite current market challenges. Here are the key updates:
- sBTC Goes Multi-Chain (September 22, 2025) – Stacks’ decentralized Bitcoin token, sBTC, is now available on the Sui blockchain.
- London Stock Exchange BTC Staking ETP (September 19, 2025) – Valour launched a Bitcoin staking product on the London Stock Exchange using Stacks/Babylon technology.
- STX Liquidity Surge via StackingDAO (September 12, 2025) – $25 million worth of STX tokens have been locked into liquid staking pools through StackingDAO.
Deep Dive
1. sBTC Goes Multi-Chain (September 22, 2025)
Overview:
sBTC is a Bitcoin-backed token created by Stacks that operates with minimal trust requirements. It has now expanded to the Sui blockchain using Wormhole’s cross-chain technology. This means users can access Bitcoin-based DeFi on Sui’s fast network (capable of 65,000 transactions per second) while still benefiting from Bitcoin’s security through Stacks’ Proof-of-Transfer system.
What this means:
This is a positive development for STX because sBTC’s availability on multiple blockchains could increase the amount of Bitcoin value locked through Stacks. However, there is some risk since other Bitcoin Layer 2 solutions, like Babylon, are also pursuing multi-chain strategies, which could create competition. (CCN)
2. London Stock Exchange BTC Staking ETP (September 19, 2025)
Overview:
Valour, a product by DeFi Technologies, launched a Bitcoin staking Exchange-Traded Product (ETP) on the London Stock Exchange. This product uses Core Chain technology built on Stacks and Babylon, offering investors a 1.4% yield on their Bitcoin holdings through Layer 2 staking methods.
What this means:
This is somewhat positive for STX because it shows growing interest in earning yield on Bitcoin, which aligns with Stacks’ goals. However, the ETP does not directly use Stacks’ native staking, highlighting competition from other institutional Bitcoin finance solutions. (Binance)
3. STX Liquidity Surge via StackingDAO (September 12, 2025)
Overview:
Since January 2025, StackingDAO has attracted 25 million STX tokens (worth about $14.3 million) into its liquid staking pools. These pools offer 8-9% yields paid in Bitcoin or sBTC by using automated Stacking strategies.
What this means:
This is a positive sign for STX because locking up tokens reduces the circulating supply (out of a maximum 1.8 billion STX), which can support price stability. However, a recent 0.57% weekly decline in STX price suggests some investors remain cautious about how quickly Bitcoin-based DeFi will grow. (StackingDAO)
Conclusion
Stacks is strengthening its position in Bitcoin’s DeFi space through innovations like cross-chain sBTC and institutional products. However, it faces strong competition and broader crypto market challenges, with STX down 16% year-to-date. The big question remains: will Bitcoin’s massive $860 billion market cap lead to significant adoption of Layer 2 solutions like Stacks before other Bitcoin finance options take the lead?
What is expected in the development of STX?
Stacks’ roadmap is focused on growing its ecosystem by integrating key technologies, upgrading its protocol, and expanding Bitcoin-based decentralized finance (DeFi) offerings.
- Ledger Live Integration (Q3 2025) – Native support for Stacking and SIP-010 token standard.
- Axelar Bridge Launch (Q3 2025) – Enables cross-chain transfers of Bitcoin (BTC) and stablecoins.
- sBTC Capacity Expansion (2025–2026) – Increasing Bitcoin-backed assets from 5,000 to 21,000 BTC.
- Clarity 2.0 + Wasm Support (2026) – Improved smart contract performance and developer tools.
Deep Dive
1. Ledger Live Integration (Q3 2025)
Overview: Stacks is working to integrate with Ledger Live, a popular hardware wallet app, to allow users to manage their STX tokens and participate in Stacking directly within the app. This includes full support for the SIP-010 token standard, which makes storing and earning rewards on STX safer and easier.
What this means: This is a positive development for STX adoption. By supporting Ledger Live, Stacks can attract Bitcoin holders who prefer secure hardware wallets and want to earn rewards through Stacking. However, there is a chance the integration could be delayed (Stacks X).
2. Axelar Bridge Launch (Q3 2025)
Overview: Stacks is partnering with Axelar to build a bridge connecting Stacks with other blockchain networks like Ethereum, Solana, and Cosmos. This will allow users to move BTC and stablecoins such as USDC across different blockchains.
What this means: This could improve liquidity and attract decentralized finance users. However, the success of this bridge depends on creating strong incentives for liquidity providers and avoiding security issues like the $8.3 million hack experienced by the Alex Protocol (CoinMarketCap).
3. sBTC Capacity Expansion (2025–2026)
Overview: After reaching 5,000 BTC in sBTC deposits (a Bitcoin-backed asset on Stacks), the project plans to increase this capacity to 21,000 BTC. This will involve improving the protocol to reduce delays when redeeming sBTC and making audits easier.
What this means: This is a strong long-term positive. Expanding Bitcoin’s use in DeFi could make Stacks a leading platform for earning yield on BTC. Still, reaching this goal depends on continued demand for Bitcoin-backed loans and financial products.
4. Clarity 2.0 + Wasm Support (2026)
Overview: The Clarity smart contract language used on Stacks will be upgraded to version 2.0, improving ease of use for developers. Additionally, support for WebAssembly (Wasm) will enable faster contract execution and compatibility with more development tools.
What this means: This upgrade should attract more developers, including those familiar with Ethereum. However, transitioning to the new system might slow down new app launches temporarily (Stacks X).
Conclusion
Stacks is focusing on building out Bitcoin DeFi infrastructure through important integrations like Ledger Live and Axelar, scaling sBTC capacity, and improving developer tools. The pending SIP-031 proposal, which would increase STX token emissions to fund ecosystem growth, could speed up development if approved. It remains to be seen how competition from other Bitcoin Layer 2 solutions like Merlin will impact Stacks’ early lead in this space.
What updates are there in the STX code base?
Stacks is making big moves to bring decentralized finance (DeFi) to Bitcoin with important upgrades and growing community support.
- Satoshi Upgrades (May 23, 2025) – Users can now mint sBTC (Bitcoin-pegged tokens) themselves and stake both BTC and STX to earn rewards.
- Core Efficiency Improvements (June 27, 2025) – Faster transactions under 10 seconds and improved smart contract tools.
- Developer Momentum (July 19, 2025) – Stacks is among the top 20 most active crypto developer communities, showing strong growth.
Deep Dive
1. Satoshi Upgrades (May 23, 2025)
What’s new: These upgrades make sBTC more decentralized by letting users mint it without relying on a middleman. Plus, users can now stake both Bitcoin (BTC) and Stacks (STX) tokens to earn rewards, helping secure the network. Another improvement lets users pay transaction fees using sBTC, making it easier to use Bitcoin-based apps.
Why it matters: This is great news for STX because it boosts Bitcoin’s role in DeFi, attracts more users and funds, and increases the usefulness of STX tied to Bitcoin’s growth. (Source)
2. Core Efficiency Improvements (June 27, 2025)
What’s new: The network is getting faster, aiming for transaction times under 10 seconds, with plans to eventually match the speed of popular blockchains like Ethereum and Solana. A new version of the Clarity programming language will support Wasm (WebAssembly), making smart contracts run more efficiently and attracting more developers.
Why it matters: In the short term, these changes might cause some network adjustments, but overall, faster and cheaper transactions will encourage more people to use Stacks in the future. (Source)
3. Developer Momentum (July 19, 2025)
What’s new: According to Electric Capital, Stacks is now one of the top 20 crypto communities with the most active developers. The number of contributors grew by 210% year-over-year, thanks to grants, hackathons, and a focus on making Bitcoin programmable. Important projects include trustless sBTC, WalletConnect integration, and support for the Axelar bridge.
Why it matters: More developers mean more innovation and new features, which is a strong positive sign for STX’s long-term success. (Source)
Conclusion
Stacks is focused on making Bitcoin DeFi scalable, secure, and easy to use, positioning itself as a key platform for Bitcoin-based innovation. With growing developer support and technical improvements, STX is well-positioned to tap into Bitcoin’s massive $1 trillion+ dormant liquidity.