What could affect the price of STX?
Stacks is currently balancing between growing interest in Bitcoin-based decentralized finance (DeFi) and concerns about its token supply.
- Satoshi Upgrades (Positive) – Upcoming improvements to the network could increase how useful STX is alongside Bitcoin.
- Bitcoin Market Link (Mixed) – STX’s price still closely follows Bitcoin’s ups and downs, even as its own ecosystem grows.
- Supply Concerns (Negative) – Discussions about increasing miner rewards could lead to more STX tokens in circulation, potentially lowering its value.
In-Depth Look
1. Satoshi Upgrades & sBTC Growth (Positive Outlook)
What’s Happening:
The Satoshi Upgrades are set to improve Stacks’ ability to support Bitcoin-based DeFi. Features like dual staking (using both BTC and STX), programmable Bitcoin vaults, and easier fee payments with sBTC (a token pegged to Bitcoin) are part of this. Currently, over 5,000 BTC worth of sBTC is in use, and partnerships like Wormhole are helping sBTC work across different blockchains.
Why It Matters:
Making Bitcoin more useful on Stacks could increase demand for STX, which is needed to pay transaction fees (“gas”). Dual staking might also encourage more people to buy and hold STX. Past trends show that when sBTC usage grows, STX prices have risen by over 35% (Cryptonews).
2. STX’s Connection to Bitcoin & Competition (Mixed Impact)
What’s Happening:
STX’s price moves closely with Bitcoin (a 0.82 correlation over 30 days), even though Stacks operates as a Layer-2 solution on top of Bitcoin. Stacks currently leads Bitcoin Layer-2 projects with over $500 million locked in its system, but competitors like Bitcoin Hyper and Sonic SVM are gaining attention in the Bitcoin DeFi space.
Why It Matters:
Bitcoin’s strong market position helps lift STX, but if Stacks doesn’t stand out from new competitors, its growth could be limited. The Nakamoto upgrade ensures all transactions are fully confirmed on Bitcoin, which is a plus. However, to keep attracting users, Stacks needs to offer consistent rewards (over 10% annual percentage yield) for staking BTC.
3. Token Supply Issues (Negative Outlook)
What’s Happening:
A recent proposal (SIP-019) suggested increasing miner rewards by 60%, raising concerns about inflation. Although the proposal was put on hold, it highlighted disagreements in the community about expanding the STX supply. The circulating supply of STX has already grown by 4.2% year-over-year to 1.81 billion tokens.
Why It Matters:
If the supply of STX increases, it could put downward pressure on the price. STX’s recent 38% drop over 30 days partly reflects these worries. Miners currently sell about 84,000 STX daily (roughly 18% of Binance’s trading volume), which adds consistent selling pressure (Forum Analysis).
Summary
The future of STX depends on how quickly it can roll out Bitcoin-focused features before inflation concerns take hold. If the upgrades succeed, they could revive interest in STX as a way to earn Bitcoin yields, similar to when STX reached $3.84 in December 2024. However, STX remains sensitive to Bitcoin’s overall market swings and internal debates about token supply.
What to Watch: Will sBTC usage grow to 21,000 BTC (four times the current amount) by early 2026 to help balance out selling pressure from miners?
What are people saying about STX?
Conversations around Stacks (STX) are balancing between exciting DeFi progress and some network challenges. Here’s the latest:
- Ecosystem growth – More people are using sBTC, and the total value locked (TVL) just hit $100 million.
- Exchange pauses – Temporary transaction halts on exchanges like Upbit and Bithumb have caused some short-term worries.
- Governance updates – A key vote on SIP-031 is generating optimism about the future of DeFi on Stacks.
Deep Dive
1. @StacksOrg: sBTC and TVL growth signal strength
"100M STX locked in Stacking DAO, 25M STX flowed into stSTXbtc pools since January"
– @StacksOrg (2.1M followers · 18.4K impressions · 2025-10-09 18:30 UTC)
View original post
What this means: This is a positive sign for STX. When more STX tokens are locked up, it helps secure the network and shows that Bitcoin-based DeFi applications are gaining traction. The growth of sBTC to 5,000 BTC deployed (with a goal of 21,000 BTC) points to increasing use and trust in the system.
2. @StackingDao: Liquid Staking Tokens (LSTs) boost liquidity
"0% fee native pools + sBTC yield LSTs driving Bitcoin supply growth"
– @StackingDao (387K followers · 6.2K impressions · 2025-09-12 17:00 UTC)
View original post
What this means: This is good news for STX’s liquidity. Liquid staking tokens allow users to earn yield on Bitcoin while still holding STX exposure. This innovation could attract more investors looking for Bitcoin returns without giving up their STX holdings.
3. @mannymoebtc: Community optimism
"Stacks season incoming $stx"
– @mannymoebtc (184K followers · 3.7K impressions · 2025-10-05 02:56 UTC)
View original post
What this means: This reflects positive sentiment from the community but doesn’t have strong technical or fundamental support. STX is still trading about 52% below its 2025 highs despite recent improvements in infrastructure.
4. CoinJournal: Exchange suspensions cause short-term dips
"STX dropped 11.4% weekly after Bithumb suspended transactions for network upgrades"
– CoinJournal (2025-07-25 12:58 UTC)
View article
What this means: This is a short-term negative. Temporary transaction halts on exchanges like Bithumb and Upbit have raised concerns about network stability. However, these upgrades are intended to improve the network in the long run.
Conclusion
The outlook for STX is mixed. Developers are excited about hitting new milestones in Bitcoin DeFi, while traders remain cautious due to exchange-related disruptions. Keep an eye on the SIP-031 governance vote expected in Q4 2025, which proposes increasing protocol emissions to 5.75% annually to support ecosystem growth. The big question: will developer optimism outweigh market concerns?
What is the latest news about STX?
Stacks is expanding globally and upgrading its technology while facing mixed market signals. Here’s the latest update:
- Pakistan Blockchain Hub (October 10, 2025) – Stacks teamed up with Pakistan to build crypto talent and create a stablecoin system that follows regulations.
- Altcoin Season Momentum (October 7, 2025) – STX jumped 6.5% as sBTC grew across blockchains and broke through technical resistance.
- Stacking DAO Milestone (September 25, 2025) – Stacking DAO passed 100 million STX in total value locked (TVL), boosting Bitcoin-based decentralized finance (DeFi).
Deep Dive
1. Pakistan Blockchain Hub (October 10, 2025)
Overview:
Stacks partnered with Pakistan’s government to promote blockchain education, improve money transfers, and develop clear regulations. Projects include hackathons with Lahore University and pilot programs for digital IDs and rupee-backed stablecoins. Finance Minister Muhammad Aurangzeb highlighted the importance of diaspora expertise, including Stacks founder Dr. Muneeb Ali.
What this means:
This is a positive sign for STX because it shows Stacks working closely with regulators in a country with a young population (60% under 30). If successful, it could increase the use of sBTC for remittances and expand Bitcoin-based applications. (The Daily Hodl)
2. Altcoin Season Momentum (October 7, 2025)
Overview:
STX’s price rose 6.5% to $0.65, helped by sBTC’s connection with Wormhole, which allows liquidity to move across different blockchains. It also broke through a key resistance level at $0.63. Daily trading volume topped $100 million, showing renewed interest in Bitcoin-related DeFi.
What this means:
The price increase depends on sBTC’s growing usefulness and the overall story of Bitcoin in DeFi. However, STX is still down 36% over the past 60 days, so caution is advised. Watching sBTC’s adoption (over 5,000 BTC locked) and whether STX can stay above $0.60 will be important. (Cryptonews)
3. Stacking DAO Milestone (September 25, 2025)
Overview:
Stacking DAO, a liquid staking platform on Stacks, surpassed 100 million STX ($42 million) in total value locked. This milestone came as Dexscreener added support for SIP-010 tokens, making Stacks-based assets easier to track.
What this means:
The growing TVL shows increasing trust from institutions in Bitcoin yield products. This could bring more investment into Stacks’ DeFi ecosystem, although competition from Ethereum Layer 2 solutions remains a challenge. (X post)
Conclusion
Stacks is balancing strategic partnerships (like with Pakistan), technical improvements (such as sBTC), and ecosystem growth (through Stacking DAO) to strengthen its position in Bitcoin DeFi. While regulatory support and cross-chain liquidity are promising, it remains to be seen if STX can maintain momentum amid overall market uncertainty and altcoin fluctuations.
What is expected in the development of STX?
Stacks’ roadmap is focused on expanding Bitcoin DeFi by growing sBTC, improving cross-chain connections, and upgrading technology.
- sBTC Withdrawals (Q4 2025) – Finalizing a way to securely convert sBTC back to Bitcoin, which will increase liquidity.
- Clarity WASM Integration (Q1 2026) – Making smart contracts run faster and easier for developers to use.
- Axelar Bridge Launch (Q1 2026) – Enhancing the ability to move sBTC across different blockchains.
Deep Dive
1. sBTC Withdrawals (Q4 2025)
Overview: Allowing users to withdraw sBTC and get actual Bitcoin is key for getting listed on exchanges and attracting big investors. This feature is almost ready, with current testing focusing on security checks (Stacks Forum).
What this means: This is good news for STX because it will unlock more sBTC liquidity on major exchanges, which could increase demand for STX in decentralized finance (DeFi). However, there is a risk of delays if security audits take longer or if exchanges are slow to integrate this feature.
2. Clarity WASM Integration (Q1 2026)
Overview: Moving Clarity smart contracts to WebAssembly (WASM) technology aims to speed up contract execution by about 30% and attract developers who use Rust programming language. Early tests show contracts could run 2 to 5 times faster (Stacks Townhall).
What this means: This is somewhat positive because better performance might bring more developers to the platform. However, switching to this new system could be complicated and slow at first. Success depends on making sure existing Clarity apps still work smoothly.
3. Axelar Bridge Launch (Q1 2026)
Overview: Adding Axelar’s cross-chain technology will let users move sBTC to other blockchains like Solana, Aptos, and Ethereum. This follows a test where 5,000 sBTC were successfully bridged to Solana in June 2025 (Stacks Roadmap Draft).
What this means: This is positive for STX if cross-chain activity grows. But it could be a challenge if other Bitcoin Layer 2 solutions, like RSK, gain more users first.
Conclusion
Stacks is focusing on building Bitcoin-centered DeFi by scaling sBTC and improving how it works across different blockchains, along with technical upgrades to attract developers. While progress is clear, risks like slow stablecoin adoption or a delayed “Bitcoin Season” could slow momentum. The big question remains: how quickly can Stacks turn Bitcoin’s $1 trillion+ idle capital into active sBTC-driven DeFi use?
What updates are there in the STX code base?
Stacks is making important updates to improve Bitcoin-based decentralized finance (DeFi), enable easier interaction between different blockchains, and enhance the core technology behind its network.
- Satoshi Upgrades (August 5, 2025) – Improving the security of sBTC (a Bitcoin-pegged asset) and introducing dual staking options for BTC and STX holders.
- Clarity & WASM Support (June 27, 2025) – Making smart contracts faster and more accessible for developers.
- Wormhole Integration (July 2, 2025) – Allowing sBTC and STX to move smoothly between different blockchains like Solana and Sui.
Deep Dive
1. Satoshi Upgrades (August 5, 2025)
What’s happening: The Satoshi Upgrades aim to make sBTC fully self-custodial, meaning users control their Bitcoin-pegged assets without relying on middlemen. It also introduces dual staking, letting users earn about 3% yield by staking either Bitcoin (BTC), Stacks tokens (STX), or both.
Developers are reducing the need to trust third parties in how sBTC maintains its value peg to Bitcoin. This means users can mint (create) or redeem sBTC directly, making the system safer and more transparent. Dual staking aligns the interests of Bitcoin holders and Stacks network validators, strengthening the overall ecosystem.
Why it matters: This is positive news for STX because it increases Bitcoin’s usefulness in DeFi and boosts the security of the Stacks network. Users get safer ways to hold Bitcoin exposure and more flexible options to earn yields.
(Source)
2. Clarity & WASM Support (June 27, 2025)
What’s happening: Stacks is upgrading its smart contract language, Clarity, and adding support for WebAssembly (WASM), a technology that allows contracts to run faster and be written in popular programming languages like Rust and C++.
Clarity keeps its predictable and secure execution, which is important for transactions finalized on Bitcoin. The upgrades reduce the cost of running contracts by about 40%. WASM support makes it easier for developers to build on Stacks by using familiar tools.
Why it matters: This update is neutral for STX in the short term but promising for the future. Faster and cheaper smart contracts could attract more applications to the Stacks network, though some developers may take time to switch over.
(Source)
3. Wormhole Integration (July 2, 2025)
What’s happening: Stacks has integrated with Wormhole, a protocol that enables tokens like sBTC and STX to move seamlessly between different blockchains such as Solana and Sui.
Instead of using wrapped tokens (which are representations of assets on other chains), this integration uses a burn-and-mint process to transfer tokens natively. This helps solve liquidity issues by allowing Bitcoin-based assets to be used across multiple DeFi platforms.
Why it matters: This is good news for STX because it opens up new markets and use cases by connecting Bitcoin’s large $2 trillion market cap to multiple blockchains. Increased cross-chain activity could drive demand for sBTC and STX.
(Source)
Conclusion
Stacks is focused on making Bitcoin more programmable and useful through security improvements (sBTC), smarter and cheaper contracts (Clarity/WASM), and better cross-chain liquidity (Wormhole). While newer Bitcoin Layer 2 solutions compete for attention, Stacks’ strong developer community and partnerships with institutions like Copper custody show ongoing progress. The big question remains: will sBTC’s trustless design unlock Bitcoin’s vast untapped capital on a large scale?
Why did the price of STX fall?
Stacks (STX) dropped 1.12% in the last 24 hours, underperforming the overall crypto market, which rose by 0.73%. This decline comes alongside a 58% fall in trading volume and ongoing negative technical signals.
- Technical Breakdown – Prices fell below an important support level, indicating downward momentum.
- Low Trading Volume Increases Volatility – Less market activity made price swings more extreme.
- Ecosystem Challenges – Problems with Stacking DAO’s yield raised concerns, affecting investor confidence.
Deep Dive
1. Technical Breakdown (Bearish Impact)
Overview: STX’s price slipped below the 23.6% Fibonacci retracement level at $0.593 and is now trading around $0.42, close to its lowest point this year. Technical indicators like the RSI (31.33) and MACD histogram (-0.0105) show the coin is oversold but don’t suggest a rebound yet.
What this means: The weak technical setup discourages buyers. The next important support level is the yearly low at $0.253. If the price can rise above $0.475 (the 50% Fibonacci level), it might stabilize.
2. Low Liquidity Amplifies Sell-Off (Bearish Impact)
Overview: Trading volume dropped 58% to $13 million, with turnover at just 1.71%, indicating fewer active buyers and sellers.
What this means: Thin trading activity can cause bigger price swings. The sharp volume decline suggests less interest from big investors and some retail traders giving up.
3. Stacking DAO Yield Concerns (Mixed Impact)
Overview: On September 9, a failed delegation cycle caused stSTXbtc yields to fall by 66%, raising doubts about the reliability of Stacks’ Proof-of-Transfer (PoX) system.
What this means: While regular stacking remains unaffected, this event hurt confidence in liquid staking products, which are important for driving demand for STX.
Conclusion
The recent drop in STX reflects a combination of technical weaknesses, reduced market activity, and challenges within its ecosystem. Although the RSI shows the coin is oversold, the lack of positive signals and Bitcoin’s strong market dominance (58.68%) limit chances for a quick recovery. Key point to watch: Will STX hold the $0.40 support level, or will selling pressure push it down to this year’s lows?