Ethereum (ETH) is currently at the forefront when it comes to smart contract features and the sheer number of projects on its network, but the drive to develop products on Bitcoin (BTC) is gaining traction, with proponents like Square CEO Jack Dorsey spearheaded efforts to bring Decentralized Funding (DeFi) to the Bitcoin network.
One project that aims to combine the capabilities of DeFi with the security of the Bitcoin network is Stacks (STX), a first-layer blockchain protocol designed to integrate smart contracts and decentralized applications (dApps) into the Bring Bitcoin Network.
Data from Cointelegraph Markets Pro and TradingView show that the STX price has risen 195% since falling to a low of $ 0.50 on June 22nd to $ 1.47 on July 11th, and now that Bitcoin has passed some Upward momentum has shown that the STX price has risen again by 10%. Win on July 22nd.
Three reasons for STX’s recent strength are the release of the Clarity programming language that brought smart contracts to Stacks 2.0 and Bitcoin, the ability for STX holders to set tokens for BTC rewards, and the introduction of DeFi and non-fungible tokens ( NFTs) into the Bitcoin network.
Smart contracts are coming to Bitcoin
The introduction of the Clarity programming language on Stacks was the main growth catalyst for the Stacks ecosystem as it enabled the creation of smart contracts on the Bitcoin network.
I heard that maybe these smart contracts could be a big deal for Bitcoin. @Stacks
– muneeb.btc (@muneeb) July 8, 2021
Clarity claims to be a “decidable language” which means that “you can be sure from the code itself what the program is going to do”.
The main difference between Clarity and other smart contract languages is the decidable language, which is not complete, and the fact that the language is interpreted as it is and transmitted on the blockchain instead of being compiled, which “ensures that the code that is executed “Is human readable and auditable.”
The collaboration between the two networks means popular sectors like DeFi and NFTs now have a way to work and be recorded on the Bitcoin network without worrying about slow transaction times and increased costs.
STX holders can earn BTC through staking
Stacks recently introduced STX staking for holders, which allows them to earn BTC as a reward.
The Stacks network uses a novel mining protocol called Proof-of-Transfer (PoX) that runs parallel to Bitcoin and uses the BTC network as a reliable transmission medium for its block headers.
While most proof-of-stake networks offer staking rewards that are paid out in the native token, members of the Stacks community can use their STX tokens to earn BTC at an average rate of 10%.
This represents one of the few ways in the crypto space where a token holder can use their tokens and earn BTC as a reward.
connected: Crypto staking rewards and their unfair taxation in the US
DeFi and NFTs are coming to Bitcoin
On July 10th, STX developed and sold the very first Bitcoin NFT from the Stacks blockchain.
Historic moment for #Bitcoin
Cara Delevingne’s “Mine”, the first Bitcoin #NFT to be minted and auctioned on the #Stacks blockchain, was sold for 18,000 STX. $ 21,000 at current prices
The cost of minting and transferring “Mine” was only 0.0007 #STX or $ 0.001 https: //t.co/hjJRZwGPgR
– Jim.btc (@iCrypto_) July 10, 2021
The event should mark the beginning of a new era of smart contracts for Bitcoin, and additional bullish news revealed that USD Coin (USDC) will expand to the Stacks network. This prompted some experts to quote the Bitcoin Act, which states that “successful experiments in cryptocurrencies will eventually lead to Bitcoin”.
The introduction of NFT and DeFi features has also opened up new opportunities to leverage these popular sectors to generate a return on BTC, and this has the potential to attract new subscribers.
As a result of these developments, the momentum for STX increased in July, which is reflected in an increase in the price and the 24-hour trading volume.
VORTECS ™ data from Cointelegraph Markets Pro began to see a bullish outlook for the STX on July 19, ahead of the recent price surge.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
As can be seen on the chart above, the VORTECS ™ Score for STX climbed into the green on July 19th, hitting a high of 70 approximately 34 hours before the price rallied 42% in the next two days.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.