Why did the price of STX go up?

Stacks (STX) increased by 4.86% in the last 24 hours, outperforming the overall crypto market, which gained 3.13%. This growth is driven by protocol upgrades, expanded use of cross-chain sBTC, and technical signals indicating a rebound.

1. SIP-031 Endowment Activation – New funding to support DeFi incentives and ecosystem growth.
2. sBTC Expansion – Bitcoin integration on Sui and Solana blockchains enhances utility.
3. Oversold Technicals – RSI near 36.77 suggests short-term buying interest.

Deep Dive

1. SIP-031 Endowment Launch (Positive Impact)

Overview: On July 30, 2025, the SIP-031 upgrade went live, creating a Stacks Endowment. This fund is supported by a slight increase in protocol emissions (about 5.75% annually) and is designed to support DeFi incentives, developer grants, and marketing efforts. The proposal was approved by 97% of the community (Stacks Foundation).

What this means: This endowment provides a steady source of funding to help the Stacks ecosystem grow. It encourages developers and projects to build Bitcoin-based DeFi tools, increasing the use of STX for governance and transaction fees, which could boost demand.

What to watch: Keep an eye on how effectively the endowment funds are used and whether the total value locked (TVL) in Stacks-based DeFi platforms like ALEX and StackingDAO increases.

2. sBTC Cross-Chain Adoption (Mixed Impact)

Overview: sBTC, Stacks’ decentralized Bitcoin token, has expanded to the Sui and Solana blockchains using Wormhole’s NTT standard. This allows Bitcoin-backed DeFi applications to operate across different blockchain ecosystems (Foresight News).

What this means: This expansion improves Bitcoin’s usability in decentralized finance and strengthens STX’s role as a bridge asset. However, competition from other Bitcoin tokens like WBTC and tBTC, along with regulatory concerns about cross-chain risks, may limit the potential benefits.

3. Technical Rebound Signals (Neutral)

Overview: STX’s 14-day Relative Strength Index (RSI) was around 36.77, close to oversold levels before the recent price increase. The MACD histogram showed a slowdown in downward momentum, and the price moved above its 7-day simple moving average (SMA) of $0.579, a key short-term support level.

What this means: Traders might see this as a buying opportunity after STX’s 14.82% drop over the past 90 days. However, resistance levels at the 30-day SMA ($0.630) and the Fibonacci 38.2% retracement level ($0.647) could limit further gains.

Conclusion

The recent rise in STX reflects positive sentiment around its Bitcoin DeFi plans and technical indicators signaling a rebound. However, long-term success depends on sBTC adoption outpacing competitors and the endowment effectively driving ecosystem growth. Key point to watch: Can STX maintain levels above $0.60 if Bitcoin tests the $112,000 resistance again?

What could affect the price of STX?

Stacks faces both promising opportunities and challenges linked to Bitcoin DeFi adoption and how well its ecosystem develops.

1. Ecosystem Growth – Planned upgrades and expanding DeFi services could unlock Bitcoin’s $1 trillion in inactive capital.
2. Competition – New Bitcoin Layer 2 solutions like Bitcoin Hyper are challenging Stacks’ early lead.
3. Regulatory Edge – Being SEC-qualified adds credibility, but overall crypto regulations remain uncertain.

Deep Dive

1. Ecosystem Expansion & sBTC Adoption (Positive Outlook)

Overview: The Nakamoto upgrade in 2024 introduced sBTC, a decentralized bridge for Bitcoin, with 5,000 BTC expected to be moved onto Stacks by June 2025. The roadmap includes faster transactions, better developer tools (Stacks Foundation), and a $30 million boost in DeFi liquidity.

What this means: If sBTC adoption grows as planned, it could channel billions into Stacks-based lending and swapping platforms, increasing demand for STX tokens through fees and staking rewards. However, this depends on meeting technical goals like achieving transaction speeds under 10 seconds by late 2025.

2. Bitcoin Layer 2 Competition (Challenges Ahead)

Overview: Competitors such as Bitcoin Hyper (which raised $16 million) and Babylon’s staking-based Bitcoin solutions are competing for a share of Bitcoin’s $1.3 trillion market. Stacks’ total value locked (TVL) dropped 60% from its 2024 peak to $161 million by July 2025 (DeFiLlama).

What this means: Stacks needs to speed up partnerships, like integrating with Wormhole for cross-chain functionality, to keep its lead. If it fails to capture more than 10% of Bitcoin’s DeFi TVL by 2026, STX risks losing ground to faster and cheaper alternatives.

3. Regulatory & Macro Risks (Mixed Effects)

Overview: Stacks’ SEC-qualified status offers some regulatory protection, but wider crypto rules—such as U.S. stablecoin legislation—could affect DeFi demand. Bitcoin ETFs managing $149 billion in assets might indirectly support STX if Bitcoin’s price rises.

What this means: Favorable regulations for Bitcoin DeFi could boost STX’s usefulness, while strict rules on yield products or stablecoins, which are important to Stacks’ ecosystem, could limit growth.

Conclusion

The future price of STX depends on how well Stacks executes its Bitcoin DeFi plans amid growing Layer 2 competition. Keep an eye on the sBTC to BTC ratio—if it exceeds 0.1% (10,000 BTC) by early 2026, that would indicate strong market acceptance. The key question: Can Stacks turn Bitcoin’s role as a store of value into a vibrant DeFi platform before competitors do?

What are people saying about STX?

There’s a lot of buzz around Stacks (STX), focusing on Bitcoin-based earnings and some network challenges. Here’s the quick rundown:

1. STX stacking offers nearly 10% annual yield paid in Bitcoin – positive outlook
2. Upcoming Satoshi network upgrades bring hope but also some stability concerns
3. Temporary exchange suspensions raise short-term worries about liquidity

In-Depth Look

1. @Stacks: Earning Bitcoin with STX 🟢

"Stacking STX to earn BTC yielded 9.94% APY over last 20 cycles – real Bitcoin yield only here"
– @Stacks (192K followers · 2.1M impressions · July 17, 2025, 9:00 PM UTC)
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What this means: This is good news for STX holders. By “stacking” (locking up) STX tokens, users earn Bitcoin rewards at nearly 10% annual percentage yield (APY). This is unique because it combines Bitcoin’s strength with a steady income, which is rare in the crypto world. Locking STX also reduces the number of tokens available for trading, which can support the price.

2. @Stacks: Network Upgrade Challenges 🟡

"Join Townhall for Satoshi upgrade details – faster blocks, improved sBTC, and incentive programs"
– @Stacks (192K followers · 887K impressions · July 15, 2025, 5:00 PM UTC)
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What this means: The Stacks network is getting an upgrade called “Satoshi,” which aims to speed up transaction times, improve sBTC (a Bitcoin representation on Stacks), and add new incentives. However, some exchanges like Bithumb and Upbit paused trading during these upgrades, causing STX prices to drop by 7-11% (source). The success of these upgrades depends on smooth implementation without disrupting users.

3. @StackingDao: Liquidity Concerns Amid Exchange Pauses 🔴

"25M STX flowed into stSTXbtc pools despite exchange suspensions – real yield beats temporary FUD"
– @StackingDao (41K followers · 564K impressions · September 8, 2025, 3:00 PM UTC)
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What this means: Some Korean exchanges temporarily stopped trading STX, reducing liquidity by 38% during that time (source). This caused short-term concern (“FUD” – fear, uncertainty, doubt). However, many investors kept their STX locked in staking pools, with $14.5 million worth locked in the third quarter of 2025, showing confidence in the long term.

Conclusion

Overall, the outlook for STX is cautiously optimistic. The ability to earn Bitcoin rewards through stacking is a strong positive, but technical risks from network upgrades and exchange issues remain. About two-thirds of social media discussions focus on stacking rewards. Keep an eye on the 30-day correlation between STX and Bitcoin prices (currently 0.82). If it falls below 0.6, it might mean STX is moving independently from Bitcoin’s price trends. How smoothly the network upgrades go and how widely sBTC is adopted will likely shape STX’s momentum in the last quarter of 2025.

What is the latest news about STX?

Stacks is gaining momentum in decentralized finance (DeFi) and strengthening its connection with Bitcoin. Here’s the latest update:

1. sBTC Powers Sui’s BTCfi (September 22, 2025) – Stacks’ decentralized sBTC now supports Bitcoin DeFi on the Sui blockchain.
2. Institutional Bitcoin Staking ETP Launches (September 19, 2025) – A London Stock Exchange-listed ETP uses Stacks to offer Bitcoin yield strategies.
3. Stacking DAO Unlocks STX Liquidity (September 12, 2025) – The first liquid staking tokens for STX increase activity in the Stacks ecosystem.

Deep Dive

1. sBTC Powers Sui’s BTCfi (September 22, 2025)

Overview:
Stacks’ sBTC is a decentralized version of Bitcoin that can be used on other blockchains. It’s now integrated into Sui’s BTCfi platform, allowing users to lend, borrow, and earn yields with Bitcoin. Unlike other wrapped Bitcoin tokens like WBTC, sBTC reduces the risk of losing funds by avoiding centralized custody. It achieves this by using Stacks’ unique Proof of Transfer system, which leverages Bitcoin’s security.

What this means:
This integration expands how Stacks and Bitcoin can be used beyond their original blockchains. As more platforms adopt sBTC, demand for STX—the token that helps maintain sBTC’s value—could increase. This also helps make Bitcoin more useful in programmable finance, where smart contracts automate financial services. (CCN)

2. Institutional Bitcoin Staking ETP Launches (September 19, 2025)

Overview:
Valour has launched a Bitcoin Staking Exchange-Traded Product (ETP) on the London Stock Exchange that offers a 1.4% annual yield. Since Bitcoin itself doesn’t support staking (a way to earn rewards by holding coins), this ETP uses Stacks’ Layer-2 technology and protocols like Core Chain to generate returns. This shows growing interest from traditional investors in earning yield on Bitcoin holdings.

What this means:
Stacks is gaining attention as a platform that can help generate income from Bitcoin, potentially attracting more investment from mainstream finance. However, because it relies on third-party bridges like Core Chain, there are some risks related to trust and security. (Binance Square)

3. Stacking DAO Unlocks STX Liquidity (September 12, 2025)

Overview:
Stacking DAO introduced the first liquid staking tokens (LSTs) for STX. These tokens let users stake their STX to support network security while still having access to their funds for trading or other uses. They also launched an sBTC yield product that encourages Bitcoin holders to participate in Stacks’ DeFi ecosystem.

What this means:
Liquid staking lowers the barrier for STX holders to contribute to network security without losing liquidity. The sBTC yield product helps make Bitcoin a more productive asset within Stacks, but its success depends on offering competitive returns compared to other options. (Stacking DAO)

Conclusion

Stacks is establishing itself as a key player in Bitcoin’s DeFi space by connecting institutional investors, enabling cross-chain liquidity, and innovating staking options. With growing adoption of sBTC, the question remains: can Stacks attract significant Bitcoin inflows while competing with Ethereum and Solana-based wrapped Bitcoin solutions?

What is expected in the development of STX?

Stacks' roadmap is focused on boosting Bitcoin-based decentralized finance (DeFi) through important upgrades and growing its ecosystem.

1. sBTC Expansion (2025–2026) – Increasing trustless Bitcoin integration from 5,000 BTC to 21,000 BTC.
2. Ledger Live Integration (Q4 2025) – Adding native support for Stacking and asset management in Ledger hardware wallets.
3. Satoshi Upgrades (2025–2026) – Speeding up transactions and enabling dual-staking with BTC and STX.
4. SIP-031 Endowment Launch (2026) – Creating a community-funded pool to support development, marketing, and grants.

Deep Dive

1. sBTC Expansion (2025–2026)

Overview: Stacks plans to grow its decentralized Bitcoin token, sBTC, from 5,000 BTC to 21,000 BTC. This is part of a collaboration with the Stacks Asia Foundation (Stacks tweet). The upgrade will allow users to mint sBTC themselves without relying on a third party and improve how assets move between blockchains.

What this means: This is positive for STX because more sBTC use could unlock billions of dollars worth of Bitcoin for DeFi applications, increasing demand for Stacks’ smart contracts. However, the technical challenges and competition from other Bitcoin Layer 2 solutions are risks to watch.

2. Ledger Live Integration (Q4 2025)

Overview: Stacks is working to integrate its platform directly into Ledger Live, the software used with Ledger hardware wallets. This will let users stake STX and manage sBTC right from their Ledger devices (Stacks tweet).

What this means: This is somewhat positive. Making Stacks easier to use on popular hardware wallets could attract more serious investors, including institutions. But wallet integrations often take longer than expected, so the short-term impact might be limited.

3. Satoshi Upgrades (2025–2026)

Overview: These upgrades aim to reduce transaction times to under 10 seconds, allow users to stake both BTC and STX simultaneously, and let users pay fees in sBTC instead of STX. The goal is to match Ethereum’s speed and usability while benefiting from Bitcoin’s security (Roadmap article).

What this means: If successful, this could be a big win for Stacks. Faster transactions and a Bitcoin-focused user experience could set Stacks apart from other Layer 2 solutions. Still, because these upgrades depend on Bitcoin’s network, coordinating changes could be challenging.

4. SIP-031 Endowment Launch (2026)

Overview: A proposal is in place to increase the percentage of new STX tokens allocated annually to a community-controlled fund—from 3.52% to 5.75%. This fund will support grants, marketing, and developer incentives to grow the ecosystem (SIP-031 details).

What this means: This has mixed effects. More funding could speed up ecosystem growth, but the higher token inflation (about 2.23% more STX created each year) might put downward pressure on STX’s price if adoption doesn’t keep pace.

Conclusion

Stacks is making a strong push to expand Bitcoin-based DeFi by improving its infrastructure and offering incentives to developers and users. The success of these efforts depends largely on how quickly sBTC adoption grows and how smoothly the Satoshi Upgrades are implemented. Keep an eye on the amount of Bitcoin backing sBTC and the number of users staking STX to gauge progress.

What updates are there in the STX code base?

The latest updates to the Stacks (STX) code focus on making the network faster, better connected to Bitcoin, and easier for developers to use.

1. MARF Performance Overhaul (May 2025) – Trie hash calculations are now 10 to 200 times faster, and disk space usage has been reduced.
2. Krypton Testnet Upgrades (Sept 2025) – Improved block relay, expanded support for sBTC (Stacks Bitcoin), and better cross-chain compatibility.
3. Clarity Smart Contract Upgrades (July 2025) – Added new string types, smarter code inference, and automatic fee estimation tools.

Deep Dive

1. MARF Performance Overhaul (May 2025)

What happened: The Merkle Audit Record Format (MARF) now delays some complex calculations until necessary, which cuts down on computing power needed. Also, storing some data externally helps avoid slowdowns caused by database size limits.
Why it matters: This update helps STX by speeding up how quickly nodes sync with the network and lowering the resources needed to run them. It also reduces costs for miners, making the network more efficient and accessible (Source).

2. Krypton Testnet Phase (Sept 2025)

What happened: The testnet now tracks how fast blocks are downloaded and integrates with Bitcoin’s test network. This separates Stacks block production from Bitcoin’s usual 10-minute block timing.
Why it matters: This improves how Stacks works with Bitcoin’s main network and tests real-world conditions. While this is mostly positive, there might be some short-term glitches during the transition (Source).

3. Clarity Language Upgrades (July 2025)

What happened: New string types (string-ascii and string-utf8) were added, along with more flexible code rules. Developers can now use tools that automatically estimate transaction fees.
Why it matters: These improvements make it easier for developers to build more advanced smart contracts and reduce the guesswork around fees. This brings STX closer to the developer-friendly experience seen on Ethereum (Source).

Conclusion

Stacks is focusing on scaling with Bitcoin in mind, improving performance through MARF and sBTC, and enhancing developer tools. With major upgrades like the Nakamoto Upgrade and sBTC activation planned for 2025, STX is positioning itself as a strong player in Bitcoin-based decentralized finance, potentially competing with Ethereum’s Layer 2 solutions.