STX has seen a staggering 257% increase over the past 30 days, with a 62% increase in just the last week alone.
As of March 20, STX, the native cryptocurrency of the Stacks blockchain network has emerged as the best performer among the top 100 cryptocurrencies and tokens by market cap.
With a current price of $1.22 and a market cap of $1.65 billion, what’s driving this surge higher?
Reasons behind the surge
It’s likely that STX’s recent positive momentum is linked to the Stacks upgrade, which was launched on March 19.
Many blockchain networks tend to experience a rally in the days leading up to a highly anticipated network improvement or upgrade, and Stacks is no exception.
Additionally, the upgrade’s potential impact on the Bitcoin (BTC) network may be another reason for the positive investor response.
As a smart layer network for Bitcoin’s mainnet, Stacks plays a critical role in boosting the network’s functionality. The recent upgrades made to Stacks include better staking, which rewards investors for holding a certain amount of STX in BTC form.
This mechanism has likely led to increased demand for STX, with many investors accumulating the cryptocurrency in the hopes of earning bitcoin passively.
While the staking mechanism may be driving STX’s current upside, it’s worth noting that a selloff is not uncommon as the hype around upgrade subsides. However, the fact that many holders are staking their STX may soften the potential selloff.
STX price prediction
In terms of price predictions, crypto data website CoinCodex has forecasted that STX could spike up to 115% from its current levels and reach $2.64 by Mar. 25.
Similarly, algorithmic forecasting website Digital Coin predicts that STX will continue to surge, with an average price of $2.48 this year.
It’s important to remember that price predictions are based on current market and technical sentiments, which can change quickly.