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STACKS, the native token of Stacks Community, rose 27% on Dec. 20, fueled by constructive feedback from famend investor Tim Draper.
Draper, who has a historical past of constructing profitable crypto investments, expressed his enthusiasm for Stacks in an interview with CoinBureau.
He believes that Stacks has the potential to reshape the best way that sensible contracts are deployed and used on the Bitcoin (BTC) blockchain.
By default, Bitcoin is a transactional layer and doesn’t assist sensible contracts. Stacks intention to faucet into Bitcoin’s decentralization and safety by appearing as a layer-2 community from the place protocols can rapidly deploy sensible contracts. By “pegging-in”, it’s attainable to switch STACKS between Bitcoin and Stacks with out modifying the legacy blockchain.
Draper’s feedback come when Stacks is gaining traction, rising in tandem with the broader crypto community. Bitcoin stays agency, and bulls are focusing on $50,000 and even all-time highs recorded in late November 2021 at $69,000.
In latest months, there was a notable uptick in capital flows into Stacks. Its complete worth locked (TVL) is up from $7 million recorded in early 2023 to over $56 million when writing, based on DeFiLlama data.
This progress is partly attributed to the emergence of Bitcoin inscription tasks like Ordinals. As a result of speedy rise of some BTC-20 tokens, the main target has been on tasks tapping into Bitcoin, lifting Stacks.
Draper’s bullish sentiment in the direction of Stacks aligns together with his broader outlook on Bitcoin.
The enterprise capitalist is bullish on Bitcoin and expects the coin to succeed in $250,000 by 2025.
The crypto group expects the Securities and Trade Fee (SEC) to approve a number of spot Bitcoin ETFs. This transfer might elevate costs, additional pumping STACKS.
Buying and selling at around $1.33 on Dec. 22, STACKS is up 215% from September 2023 lows. The uptrend stays, and bulls may lengthen good points, lifting the token to 2021 highs of round $3.2.
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