Stacks (STX) Drops 23%, But Recent Devs Might Slow The Trend

With the hostile market environment, Stacks (STX) has continued its downward spiral as bears mount the pressure. According to CoinGecko, the token is down nearly 23% since last week, worsened by the current correction phase the market has entered. The latest market data shows that major cryptocurrencies like Bitcoin and Ethereum have shown a drop of 10% since last week, pulling the market downward by 2%.

However, several developments might help slow the token’s drive downward. These developments show Stacks as the prime layer-2 for the top cryptocurrency in the market. 

Although the market is incredibly bearish, Stacks remain attractive for both institutional and retail investors alike. 

Ever since the first step of the Nakamoto upgrade rolled out last April 22nd, the newly introduced role of ‘Signers’, their self-made term for validators, significantly grew in size. According to their blog post in August 1st, 39 blockchain institutions signed up with Stacks to be a signer.

Among the signers is Xverse, a Bitcoin wallet provider that dabbles in the BRC-20 standard. This major onboarding will result in a larger user base, giving Stacks a big advantage as layer 2s on the Bitcoin blockchain attract more attention. 

However, the partnership announcement made between Stacks and Aptos during the Bitcoin Builders Conference created some buzz for the two. According to some key takeaways, Aptos will join Stacks as a signer, bumping their total Signer count to 40, along with the start of a working group for better collaboration between the two organizations.

Stacks @Aptos live on stage at the Bitcoin Builders Conference!

@AptosLabs Head of Ecosystem Neil Harounian talked to @StacksOrg Chairperson Brittany Laughlin about forming a working group, as well as the Aptos Foundation becoming a Signer for Stacks.

Learn more 1/3 pic.twitter.com/EFTsIntD6M

— stacks.btc (@Stacks) July 31, 2024

Since the start of the onboarding for Signers, about 118 BTC has been handed out to the various institutions. This amount totals over $7 million at the current spot price for Bitcoin at $60.7k. 

As of writing, STX’s current position remains occupied by the bears as the current market environment encourages selling rather than buying. But the bulls are mounting a string defense around the $1.460 price floor. 

This is huge for investors bullish on STX as it gives the bulls strong support for a possible movement upward. However, the possibility of a bullish breakthrough remains uncertain. The market’s current downward trend is supported by the fact that the major cryptocurrencies are still bearish in the short to medium-term. 

If the bulls can defend the $1.460 line, we can expect lesser volatility within the market compared with today’s movements. If they’re successful, retaking the May-June price levels will be easy. 

Investors and traders should keep their eyes open for any market movement in favor of the bulls. 

Featured image from Boxmining, chart from TradingView