What is expected in the development of STX?

Stacks is making important progress with these key milestones:

1. Tier-1 Stablecoin Integration (Q1 2026) – Adding a major stablecoin like USDC directly on the Stacks network to unlock strong liquidity for Stacks DeFi applications.
2. sBTC Multichain via Wormhole (Q1 2026) – Allowing sBTC to move across different blockchain ecosystems, boosting Bitcoin liquidity and usability.
3. Trustless, Decentralized sBTC (Research & Development) – Developing sBTC into a fully self-custodial system, giving users complete control and improving security.

Deep Dive

1. Tier-1 Stablecoin Integration (Q1 2026)

Overview: One of the top goals for the Business Development team is to launch a major stablecoin—such as USDC or USDT—directly on the Stacks blockchain (Stacks). This is a big step beyond using bridged assets and is expected to make it easier for users to join the ecosystem, create better trading options, and enable new decentralized finance (DeFi) services.

What this means: This is positive news for STX holders because having a reliable stablecoin on Stacks is essential for a healthy DeFi environment. It lowers the barrier for new users and provides a stable asset for activities like lending, borrowing, and trading. This could lead to more transactions on the network and higher demand for STX tokens through transaction fees.

2. sBTC Multichain via Wormhole (Q1 2026)

Overview: A key goal is to expand sBTC beyond the Stacks network by connecting it to other popular blockchain ecosystems using the Wormhole bridge, following plans to integrate with Axelar (Stacks). This will allow Bitcoin to be used natively across multiple blockchains.

What this means: This development is good for both STX and sBTC because it positions Stacks as a central hub for Bitcoin liquidity that can be programmed across different platforms. By making sBTC available on high-traffic blockchains, it can attract new users and capital back to Stacks, increasing the usefulness and demand for both sBTC and STX tokens, which secure the network.

3. Trustless, Decentralized sBTC (Research & Development)

Overview: The long-term plan is to make sBTC fully trustless and non-custodial, meaning users would always have direct control over their Bitcoin without relying on any third party. Developers are exploring new designs like "Bitcoin Post-Conditions" that would let users redeem sBTC on their own, without needing a group of signers (Stacks Forum).

What this means: This is a major, long-term positive for STX’s value. A truly decentralized sBTC would offer stronger security than wrapped Bitcoin held by custodians, potentially attracting large institutional Bitcoin investors looking for DeFi yield opportunities. However, this is still in the research phase, so there is some risk around how and when it will be implemented.

Conclusion

Stacks’ near-term plans focus on solving liquidity challenges and expanding Bitcoin’s usability across blockchains. Its long-term vision aims to create a new standard for trust-minimized Bitcoin finance. The big question is: how quickly will the Stacks ecosystem grow once these foundational DeFi building blocks are in place?

{{technical_analysis_coin_candle_chart}}

What updates are there in the STX code base?

Stacks is upgrading its core technology to make transactions faster, improve the developer experience, and enhance staking features.

1. Core Roadmap for Speed & Developer Experience (June 27, 2025) – Aims for transactions under 10 seconds, a new version of the Clarity smart contract language, and easier staking tools.
2. SIP-031 Ecosystem Funding Proposal (May 30, 2025) – Suggests a temporary increase in STX token issuance to fund a developer endowment for ecosystem growth.
3. Copper Adds sBTC Stacking Support (June 10, 2025) – Institutional custody platform Copper now supports Stacks’ Bitcoin-backed asset, sBTC, making it easier for large investors to participate.

In-Depth Look

1. Core Roadmap for Speed & Developer Experience (June 27, 2025)

What’s happening: Stacks is working to make its blockchain faster and simpler for developers. This means users will see quicker transaction confirmations and smoother app experiences.

The update focuses on three main improvements:

• Achieving transaction speeds consistently under 10 seconds, building on previous upgrades.
• Launching a new version of Clarity, the smart contract language, which will support WebAssembly (Wasm) to make contracts run more efficiently.
• Improving the staking (called Stacking) experience by removing a waiting period and adding automatic staking options.

Why it matters: Faster, cheaper transactions and easier staking can attract more users and developers to the network. More people staking STX tokens helps secure the network and may reduce selling pressure, which is good for the token’s value.

(Stacks)

2. SIP-031 Ecosystem Funding Proposal (May 30, 2025)

What’s happening: This governance proposal aims to create a dedicated fund to support the growth of the Stacks ecosystem. It doesn’t change the blockchain code but focuses on funding future projects.

The plan is to temporarily increase the annual STX token issuance from about 3.52% to roughly 5.75% for five years. The extra tokens would fund grants, developer bounties, and infrastructure improvements to help Stacks compete with other blockchain networks.

Why it matters: This could have mixed effects. The increased token supply might cause some short-term selling pressure. However, if the fund successfully boosts development and adoption, it could greatly increase the long-term value and usefulness of Stacks.

(TheStreet)

3. Copper Adds sBTC Stacking Support (June 10, 2025)

What’s happening: Copper, a major platform that securely holds digital assets for institutions, now supports sBTC — a Bitcoin-backed asset on Stacks. This allows large investors to convert Bitcoin to sBTC, stake it, and manage it within a regulated environment.

This builds on the launch of sBTC in December 2024, making it easier and safer for institutional investors to participate in the Stacks network.

Why it matters: Institutional support is a big vote of confidence. Easier access for big investors can bring more Bitcoin capital into the Stacks ecosystem, increasing network activity and demand for STX tokens to pay transaction fees.

(CoinMarketCap)

Conclusion

Stacks is focusing on making its blockchain faster and easier to use, backed by plans to fund ongoing development and attract institutional investors. The question remains: will these upgrades spark the next big wave of Bitcoin-based decentralized finance?

What could affect the price of STX?

STX is at an important point, balancing its role as a Bitcoin Layer 2 solution with short-term market challenges.

1. Using sBTC for Gas Fees – A key community proposal could let users pay transaction fees with sBTC (a wrapped version of Bitcoin), making the experience smoother but raising concerns about reducing demand for STX.
2. Ecosystem Growth Plans – Upcoming updates aim to speed up transactions and add new decentralized finance (DeFi) features, which could increase network use and attract more users.
3. Institutional Investment Products – New regulated exchange-traded products (ETPs), like 21Shares’ ASTX, are bringing in steady investment, potentially supporting STX’s price.

Deep Dive

1. Using sBTC as a Gas Payment (Mixed Effects)

Overview: Since 2023, the community has been discussing a proposal to allow sBTC (wrapped Bitcoin) as an option to pay transaction fees, alongside STX. Supporters say this would make the network easier to use for Bitcoin holders and simplify exchange support, strengthening Stacks’ position as a true Bitcoin Layer 2. Critics, including some core developers, worry this could weaken the incentives for miners and reduce the demand for STX, which is important for securing sBTC’s value.

What this means: If this change happens, it could boost the network’s activity and bring more Bitcoin into the system, which might help STX’s price. However, if the design reduces STX’s role too much, it could hurt the token’s value despite better user experience. It’s important to watch how the community decides and track on-chain data like STX stacking (locking tokens to support the network) to understand the impact.

2. Technical Roadmap and DeFi Expansion (Positive Outlook)

Overview: The project’s roadmap includes ongoing improvements. Near-term goals are to achieve transaction speeds under 10 seconds and launch Clarity 4, an upgraded smart contract language. Medium-term plans focus on increasing sBTC capacity, adding major stablecoins like USDCx, and enabling multichain connections through bridges like Wormhole and Axelar.

What this means: Successfully reaching these goals will make the network more useful and appealing to developers. Faster transactions, lower costs, and new liquidity options like stablecoins can encourage more people to use the platform. Historically, such progress has helped increase STX’s value, as seen with the anticipation around the Nakamoto upgrade. Watching metrics like Total Value Locked (TVL) and developer activity will help measure success.

3. Institutional Adoption through ETPs (Positive Outlook)

Overview: More regulated investment options for STX are becoming available. For example, 21Shares launched the ASTX ETP, which automatically reinvests staking rewards for investors. This follows products like Grayscale’s Stacks Trust (STCK) and STX’s inclusion in indexes such as the Coinbase 50.

What this means: These products make it easier for institutional and retail investors who prefer traditional finance methods to invest in STX. Because the ETP providers must buy and hold STX tokens, this creates steady demand that can help stabilize the price and reduce volatility. Tracking the growth of Assets Under Management (AUM) in these products is important to understand their influence.

Conclusion

The future price of STX depends on successfully delivering technical upgrades that increase usage while carefully balancing incentives between STX and sBTC. For investors, it’s important to focus on real adoption indicators—like sBTC TVL and stacking participation—rather than just market hype. The key question is whether growing institutional investment will outweigh any potential dilution from proposals that fund ecosystem growth.

What is the latest news about STX?

Stacks is gaining attention from big investors while traders watch for signs of a price turnaround. Here’s the latest update:

1. 21Shares Launches Stacks ETP (January 21, 2026) – A new regulated investment product that automatically collects staking rewards, making it easier for institutions to invest.
2. Analysts Spot Possible Price Reversal (January 20, 2026) – Technical experts identify a strong support level and outline optimistic price targets for 2026.

Deep Dive

1. 21Shares Launches Stacks ETP (January 21, 2026)

What happened: 21Shares, a well-known asset manager, introduced the ASTX exchange-traded product (ETP). This product is backed by actual Stacks (STX) tokens and automatically reinvests staking rewards. It’s designed for regulated markets and helps institutional investors avoid the technical challenges of managing wallets and running nodes.

Why it matters: This is good news for STX because it opens a new, official way for large investors to get involved with Stacks, which is built on Bitcoin’s smart contract technology. The ETP could increase demand for STX and strengthen the network’s credibility.
(Source: CoinMarketCap)

2. Analysts Spot Possible Price Reversal (January 20, 2026)

What happened: Analysts noticed that STX’s price is showing signs that sellers are losing momentum near a key support range between $0.25 and $0.30. If the price stays above $0.25, it could test resistance around $0.35. Breaking through that level might open the door for prices to rise to $0.80–$1.00 later this year.

Why it matters: This suggests a neutral to positive outlook for STX’s price. Traders now have clear price levels to watch. The market might be building a foundation for growth, but a strong move depends on breaking above certain resistance levels and how Bitcoin performs overall.
(Source: CoinMarketCap)

Conclusion

The launch of a regulated ETP is a major milestone for Stacks as it attracts institutional investors. Meanwhile, technical signals hint that STX could be preparing for its next price move. The big question remains: will these new investment products lead to more real-world use and stronger liquidity on the Stacks network?

What are people saying about STX?

The Stacks (STX) community is buzzing with a mix of excitement and caution. Here’s the latest:

1. Experts see a strong chance for a big trend change, with STX’s price potentially moving between $0.30 and $2.22.
2. A recent breakout from a specific chart pattern suggests prices could rise to around $0.75.
3. Traders are watching a key resistance level near $0.39, warning there might be a short pullback before prices climb higher.

Deep Dive

1. @InvestingHaven: Long-term outlook remains positive bullish

"Stacks $STX is holding structure and preparing for a possible momentum shift. Long-term signals remain bullish. $0.30–$2.22 is the technical working range."
– @InvestingHaven (6.8K followers · Dec 24, 2025, 11:00 UTC)
View original post
What this means: This is good news for STX. It suggests the current price is near the lower end of a wide potential growth range. This could mean investors are accumulating STX in anticipation of a bigger move, especially if Bitcoin’s price also rises.

2. @Solix_Trade: Breakout from descending wedge points to strong upward move bullish

"Stacks ($STX)...has broken out of a months-long descending wedge pattern...signaling a potential major upward move. The immediate resistance is at...$0.41; clearing $0.42 is expected to open a path...up to the $0.75–$0.80 zone."
– @Solix_Trade (2.7K followers · Jan 12, 2026, 20:44 UTC)
View original post
What this means: This is a positive sign for STX. Breaking out of this chart pattern often signals a trend reversal. If STX can push past the $0.41–$0.42 resistance, it could pave the way for prices to rise toward $0.75 or higher.

3. @crypto_nuclear: Waiting for confirmation before buying neutral

"$STX ~ 3D 🚨...Wait and buy after price successfully closing above this resistance line with a short-term target of at least 10%+."
– @crypto_nuclear (3K followers · Jan 13, 2026, 03:18 UTC)
View original post
What this means: This is a cautious approach. The trader suggests waiting for STX to close above the resistance level before buying, aiming for a short-term gain of 10% or more. It highlights the importance of confirming the breakout before jumping in.

Conclusion

The overall outlook for Stacks (STX) is optimistic but careful. Traders are encouraged by signs of a possible trend reversal and key technical breakouts. However, they remain watchful of resistance levels around $0.39 to $0.42. A daily close above $0.42 would be a strong signal that the next upward phase is underway.

Why did the price of STX fall?

Stacks (STX) dropped 3.67% in the last 24 hours to $0.296, underperforming the overall crypto market, which fell by 0.87%. This continues a sharp 18% loss over the past week, even though the monthly trend remains positive with a 17.66% gain. Here’s why:

1. Technical Weakness – STX is trading below important moving averages, with indicators showing oversold conditions and ongoing selling pressure.
2. Profit-Taking After ETP Launch – The introduction of 21Shares’ regulated STX ETP (ASTX) on January 21 likely led some investors to sell and take profits after initial excitement.
3. Cautious Market Sentiment – The overall crypto market is in a "Fear" mood (Fear & Greed Index at 34), with lower trading volumes and reduced risk appetite, especially for altcoins like STX.

Deep Dive

1. Technical Weakness (Bearish Impact)

Overview: STX is currently priced at $0.296, which is below its 7-day simple moving average (SMA) of $0.315 and its 200-day SMA of $0.507. This suggests continued downward momentum. The 7-day Relative Strength Index (RSI) is at 30.07, indicating oversold conditions, while the MACD (Moving Average Convergence Divergence) is negative, confirming bearish momentum.

What this means: When prices fall below key moving averages, it often triggers more selling as traders look to exit positions. The oversold RSI hints at a possible short-term bounce, but the negative MACD shows the overall trend is still weak. Watch the $0.305 level closely—if STX can hold above this, it might signal a pause in the selling pressure.

2. Profit-Taking After ETP Launch (Mixed Impact)

Overview: On January 21, 21Shares launched the ASTX exchange-traded product (ETP), a regulated investment product that offers automated staking rewards for STX (21Shares). This followed earlier institutional access through Grayscale’s Stacks Trust.

What this means: The ETP launch is a positive step for long-term institutional adoption of STX. However, such events often cause short-term price swings as early investors sell to lock in profits—a common "sell the news" reaction. While the product makes earning staking rewards easier, the immediate price drop reflects profit-taking rather than a fundamental problem.

What to watch: Keep an eye on how much money flows into the ASTX ETP in the coming weeks to see if institutional interest remains strong.

3. Cautious Market Sentiment (Bearish Impact)

Overview: The total crypto market cap fell 0.87% in 24 hours, with spot trading volume down 34.41% and perpetual futures volume down 47.79% as of January 25. The Fear & Greed Index is at 34, indicating "Fear," and Bitcoin dominance is high at 59.12%, meaning more capital is flowing into Bitcoin rather than altcoins like STX.

What this means: In times of market caution, altcoins usually underperform. Lower trading volumes mean less liquidity and weaker conviction among traders, making STX more vulnerable to price drops. The decline in derivatives trading suggests traders are reducing risk, which tends to hit higher-risk assets harder.

Conclusion

STX’s recent 24-hour decline is due to a mix of technical weakness, profit-taking after the ETP launch, and a cautious overall market environment for altcoins. For investors, this kind of volatility is normal after a major product release. The long-term outlook for STX as part of Bitcoin DeFi remains positive.

Key levels to watch: Can STX stay above the recent low of $0.238 and break back above the $0.305 pivot? Doing so would help stabilize the short-term trend.