Why did the price of STX fall?

Stacks (STX) dropped 3.38% in the last 24 hours, performing worse than the overall crypto market, which fell 0.57%. Here’s why:

1. Bithumb Suspension – The exchange paused STX deposits and withdrawals ahead of a network upgrade, causing short-term negative effects.
2. Low Market Confidence – The Crypto Fear & Greed Index is at 24, signaling “Extreme Fear,” which lowers demand for altcoins like STX.
3. Technical Challenges – STX price is stuck below important moving averages and Fibonacci levels, limiting upward movement.

In-Depth Analysis

1. Bithumb Upgrade Pause (Short-Term Negative)

What happened:
Bithumb, a major South Korean crypto exchange, announced a temporary halt on STX deposits and withdrawals starting November 11 to support an upgrade to the Stacks mainnet. Trading is still available, but these pauses often lead users to sell their coins early to avoid risks or maintain liquidity.

Why it matters:

• Korean traders, who usually trade a lot of STX on Bithumb, have less access right now.
• Uncertainty about the upgrade’s success or timing is causing caution among investors.

What to watch:

• How stable the network is after the upgrade and when Bithumb resumes full services.

2. Market-Wide Risk Aversion (Mixed Effects)

What’s going on:
The Crypto Fear & Greed Index dropped to 24 (“Extreme Fear”) on November 9, while Bitcoin’s dominance in the market rose to 59.25%. This means investors are moving toward safer assets like Bitcoin, putting pressure on altcoins such as STX.

Why it matters:

• Altcoins usually suffer in fearful markets because there’s less trading activity.
• STX’s 24-hour trading volume fell by over 60% to $16.7 million, making its price more volatile.

3. Technical Weakness (Bearish Outlook)

Current situation:
STX is trading below its 30-day simple moving average (SMA) of $0.426 and faces resistance at the 23.6% Fibonacci retracement level of $0.516. The Relative Strength Index (RSI) is at 43.5, which doesn’t indicate oversold conditions yet.

What this means:

• The downward trend may continue unless STX climbs back above $0.426.
• If the price falls further, the next support level is around $0.253, the low from July 2025.

Conclusion

The recent drop in STX price is mainly due to Bithumb’s temporary suspension, weak sentiment toward altcoins, and technical resistance levels. While the upcoming network upgrade could improve Stacks’ role in Bitcoin-based decentralized finance (DeFi) over the long term, short-term risks are currently stronger.

Key points to watch: How STX performs after Bithumb resumes full services (after November 11) and the overall direction of Bitcoin’s market.

What could affect the price of STX?

Stacks’ price is currently influenced by two main forces: Bitcoin’s overall market momentum and the growth within Stacks’ own network.

1. Mainnet Upgrade (Nov 11) – Bithumb, a major exchange, will pause STX deposits and withdrawals to support a network upgrade, which might cause short-term price swings.
2. Stacking Adoption – Integration with WalletConnect makes it easier for users to earn Bitcoin rewards by staking STX, increasing its usefulness.
3. Bitcoin Layer 2 Competition – Other projects like Merlin Chain are competing with Stacks to offer decentralized finance (DeFi) services on Bitcoin, challenging Stacks’ position.

Deep Dive

1. Mainnet Upgrade & Exchange Impact (Mixed Impact)

Overview: Starting November 11, Bithumb will temporarily stop STX deposits and withdrawals to help implement an upgrade aimed at improving security and smart contract performance on the Stacks network. Although trading will continue, there may be less liquidity, which can lead to price fluctuations. A similar pause on Upbit in July 2025 caused STX’s price to drop about 7% before recovering once the upgrade was complete.
What this means: Traders might sell off some STX to avoid having their funds locked during the upgrade, causing short-term pressure on the price. However, successful upgrades tend to strengthen the network’s foundation. Keep an eye on Bithumb’s official announcements for updates on when deposits and withdrawals will resume.

2. Stacking Demand & Wallet Integrations (Bullish Impact)

Overview: WalletConnect’s expanded support now allows over 45 million users to easily participate in STX stacking, which is a way to lock up STX tokens to earn Bitcoin rewards through apps like Hex Trust. Currently, more than 25 million STX are locked in the Stacking DAO’s liquid staking pool, which reduces the number of tokens available for trading.
What this means: More people stacking STX means fewer tokens circulating on the market, which can push prices up. It also attracts Bitcoin holders looking for ways to earn yield, increasing demand. Previous wallet integrations, such as BitGo’s support for sBTC, boosted STX liquidity by 18% within a month.

3. Bitcoin L2 Competition (Bearish Risk)

Overview: Competitors like Merlin Chain (with $1.2 billion in total value locked) and Babylon also use Bitcoin’s security but offer faster transaction speeds. Stacks’ Nakamoto upgrade in 2024 improved its speed, but the price of STX dropped about 31.7% over 30 days, while Bitcoin’s dominance increased by 59.2%.
What this means: To stay ahead, Stacks needs to grow adoption of sBTC (a Bitcoin-backed token on Stacks) and expand its DeFi offerings. If it fails to onboard major stablecoins as planned in Q4 2025, investors might move their funds to faster competing networks.

Conclusion

Stacks’ short-term price will depend on how smoothly the mainnet upgrade goes and how many users adopt stacking. In the long run, its success hinges on outperforming other Bitcoin Layer 2 solutions. The big question is whether integrating sBTC with cross-chain platforms like Axelar and Wormhole can unlock the $1.2 trillion of idle Bitcoin capital for Stacks’ DeFi ecosystem.

What are people saying about STX?

The conversation around Stacks (STX) combines excitement about Bitcoin-based decentralized finance (DeFi) with concerns about exchange-related risks. Here’s what’s trending:

1. WalletConnect integration is making it easier for users to participate in stacking 🚀
2. 100 million STX locked in the Stacking DAO shows growing confidence in the ecosystem 📈
3. Bithumb exchange will pause STX deposits and withdrawals ahead of a network upgrade ⚠️

Deep Dive

1. @WalletConnect: Easier Access to STX Stacking (Positive)

"STX holders now have multiple, secure ways to stack their coins using WalletConnect, helping Bitcoin DeFi grow worldwide."
– @WalletConnect (12.3k followers · 8.2M impressions · 2025-11-05 17:34 UTC)
View original post
What this means: Making stacking simpler could boost demand for STX and help Bitcoin-based DeFi become more popular. However, the real impact depends on how many users take advantage of this.

2. @StacksOrg: 100 Million STX Locked in Stacking DAO (Positive)

"The Stacking DAO has reached 100 million STX locked — with Prediction Markets and Interim Grants coming soon."
– @StacksOrg (27.2k followers · 312k impressions · 2025-10-09 18:30 UTC)
View original post
What this means: The growing amount of STX locked up shows increasing institutional interest in earning yield directly tied to Bitcoin. Still, STX’s price has dropped 31.7% over the past month, reflecting wider crypto market challenges.

3. @Bithumb: STX Trading Suspension Warning (Negative)

"Deposits and withdrawals for STX will pause on November 11 due to a Stacks network upgrade — trading will continue, but liquidity risks exist."
– @Bithumb (3.1M followers · 4.8M impressions · 2025-11-05 23:10 UTC)
View original post
What this means: Past upgrades have seen recoveries afterward, but right now STX is facing pressure with daily trading volume down 61% week-over-week to 17.1 million.

Conclusion

The outlook for STX is mixed. There’s optimism about the growth of Bitcoin-based DeFi infrastructure, but concerns remain about volatility caused by exchange issues. Keep an eye on how STX trading and liquidity recover after Bithumb’s upgrade pause on November 11, and whether the Stacking DAO can maintain its locked STX above 100 million. These factors will likely influence whether confidence in the protocol or market uncertainty dominates.

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What is the latest news about STX?

Stacks is making important upgrades and expanding access to Bitcoin-based decentralized finance (DeFi). Here’s the latest update:

1. Bithumb STX Suspension (November 11, 2025) – Temporary pause on STX deposits and withdrawals for a network upgrade; trading continues as usual.
2. WalletConnect Stacking Integration (November 5, 2025) – Easier STX stacking now available through over 600 wallets like MetaMask and Trust Wallet.
3. Hex Trust Institutional Adoption (November 5, 2025) – Major custodian Hex Trust adds STX Bitcoin-yield products for institutional clients.

Deep Dive

1. Bithumb STX Suspension (November 11, 2025)

What’s happening: South Korea’s Bithumb exchange will temporarily stop STX deposits and withdrawals starting at 8:00 AM UTC on November 11. This pause supports a Stacks network upgrade designed to improve smart contract speed and security. Importantly, STX trading will still be available during this time.
Why it matters: This is a routine step for network improvements and doesn’t affect trading directly. However, it might reduce liquidity temporarily. Once complete, the upgrade should make Stacks more powerful for Bitcoin DeFi applications.
(BitcoinWorld)

2. WalletConnect Stacking Integration (November 5, 2025)

What’s happening: WalletConnect and the Stacks Foundation have teamed up to let users easily “stack” STX tokens — locking them up to earn Bitcoin rewards — through more than 600 compatible wallets, including popular options like MetaMask and Trust Wallet.
Why it matters: This makes it simpler for people to participate in STX stacking, which could increase demand and generate more revenue for the network. Past similar integrations have boosted stacking activity by 20-30%.
(KanalCoin)

3. Hex Trust Institutional Adoption (November 5, 2025)

What’s happening: Hex Trust, a custodian managing $18 billion in assets, is integrating WalletConnect’s software to offer Stacks’ Bitcoin-yielding products to institutional investors. This starts with sBTC rewards, a way to earn Bitcoin through Stacks.
Why it matters: This move connects large amounts of idle Bitcoin (estimated at $150 billion) with Stacks’ DeFi ecosystem. It supports the growing interest in Bitcoin Layer 2 solutions, which have seen total value locked (TVL) increase by 1,500% year over year.
(Chainwire)

Conclusion

Stacks is successfully managing technical upgrades while growing its ecosystem through partnerships like WalletConnect and Hex Trust. As sBTC adoption speeds up, STX could become the key gateway for unlocking over $1 trillion in dormant Bitcoin capital into programmable, yield-generating opportunities.

What is expected in the development of STX?

Stacks' roadmap is focused on improving Bitcoin-based decentralized finance (DeFi), increasing liquidity, and enabling better interaction between different blockchain networks.

1. Mainnet Upgrade (November 11, 2025) – A crucial update to improve security and compatibility.
2. Tier-1 Stablecoin Integration (Q4 2025) – Adding support for popular stablecoins like USDT and USDC to boost DeFi liquidity.
3. sBTC Multichain Bridges (Q4 2025) – Connecting sBTC to other blockchains like Solana, Aptos, and Ethereum using Axelar and Wormhole bridges.
4. Trustless sBTC (2026) – Allowing fully decentralized Bitcoin withdrawals without relying on third-party custodians.

Deep Dive

1. Mainnet Upgrade (November 11, 2025)

Overview: This mandatory upgrade will strengthen the Stacks network’s security and prepare it for future growth. During the upgrade, some exchanges, such as Bithumb, will temporarily pause STX deposits and withdrawals (Bithumb Alert).
What this means: While there may be short-term disruptions, this update is positive for the long-term stability and reliability of the protocol.

2. Tier-1 Stablecoin Integration (Q4 2025)

Overview: Stacks will add native support for major stablecoins USDT and USDC within its DeFi applications. This will make it easier for users and institutions to participate. Over $30 million is planned for liquidity pools to attract more users (Coincu).
What this means: This is a strong positive for STX adoption, as stablecoins can increase total value locked (TVL) and reduce price volatility risks for users.

3. sBTC Multichain Bridges (Q4 2025)

Overview: sBTC, a Bitcoin-backed token on Stacks, will be connected to other blockchains like Solana, Aptos, and Ethereum through Axelar and Wormhole bridges. This allows Bitcoin assets to move freely across different networks (Stacks Tweet).
What this means: This expansion increases the usefulness of sBTC and could drive demand for STX as the underlying settlement layer.

4. Trustless sBTC (2026)

Overview: Stacks plans to enable fully decentralized sBTC redemptions using Bitcoin’s own scripting capabilities, removing the need for trusted third parties. This supports Stacks’ goal of making sBTC the most decentralized Bitcoin derivative available (Forum Draft).
What this means: This is a major positive for long-term adoption, though success depends on smooth technical implementation. Any delays could affect market sentiment.

Conclusion

Stacks is focusing on building Bitcoin-centered DeFi by making sBTC a powerful cross-chain asset while improving security and liquidity. The main challenges include potential delays in launching trustless sBTC and competition from other Bitcoin Layer 2 solutions. The key question is whether Stacks’ developer community can overcome these hurdles and maintain momentum.

What updates are there in the STX code base?

Recent updates to the Stacks codebase focus on improving speed, security, and integration with Bitcoin-based decentralized finance (DeFi).

1. MARF Optimization (May 2025) – Hash calculations are now 10 to 200 times faster by delaying certain computations.
2. SIP-031 Activation (July 2025) – Introduced the STX Endowment, which funds ecosystem growth by temporarily increasing token issuance.
3. Clarity Language Upgrades (June 2025) – Added new string types and made smart contract coding easier and less error-prone.
4. Xenon Testnet Prep (October 2025) – Switched to using Bitcoin’s public testnet for more realistic testing environments.

Deep Dive

1. MARF Optimization (May 2025)

Overview:
The Merkle Audit Reserve Forest (MARF) now postpones calculating the root hash of its data structure until the final commit step. It also supports storing data externally and optionally caching it in RAM.

What this means:
This update makes transaction processing much faster—between 10 and 200 times quicker—and lowers the computing resources needed by network nodes. This helps the Stacks network handle more activity and grow efficiently. (Source)

2. SIP-031 Activation (July 2025)

Overview:
With the SIP-031 upgrade, Stacks 3.2 created a special wallet called the STX Endowment (address: SM1Z6BP8PDKYKXTZXXSKXFEY6NQ7RAM7DAEAYR045). To fund this, the annual token issuance rate temporarily increased from 3.52% to 5.75% for five years.

What this means:
While this increase in token supply may slightly dilute existing holders in the short term, the endowment provides funding for developer grants, DeFi incentives, and marketing efforts. This investment aims to boost long-term growth and adoption of the Stacks ecosystem. (Source)

3. Clarity Language Upgrades (June 2025)

Overview:
The Clarity smart contract language added support for ASCII and UTF-8 string types and relaxed some rules to make coding easier. A new self-testing documentation system helps keep code examples accurate and up to date.

What this means:
These improvements simplify building smart contracts on Stacks, reduce the chance of bugs, and encourage more developers to create Bitcoin-based DeFi applications. (Source)

4. Xenon Testnet Prep (October 2025)

Overview:
Stacks moved into the Xenon phase by replacing the Bitcoin regtest environment with Bitcoin’s public testnet. This change provides a more realistic setting for testing before mainnet deployment.

What this means:
While this update doesn’t directly impact STX price, it’s essential for ensuring the network’s reliability and security as it prepares for major upgrades planned in 2026. (Source)

Conclusion

The Stacks codebase is evolving to improve scalability (through MARF), developer experience (via Clarity upgrades), and Bitcoin integration (with Xenon). The SIP-031 endowment marks a strategic move toward sustainable ecosystem growth. These updates position Stacks to strengthen its role as the leading Bitcoin Layer 2 platform by 2026.