Stacks (STX) approaches the $1 mark as the DeFi ecosystem on Bitcoin Layer 2 explodes.

The price of Stacks (STX) has recorded an impressive bullish trend, reaching a weekly high of $0.90 during the Asian trading session on Friday. The layer 2 protocol on the Bitcoin platform continues to assert its strength with a solid bullish trend, currently trading around $0.88 at the time of writing. This development shows increasing interest from institutional investors in the decentralized finance ecosystem (DeFi). The current breakout of STX opens up expectations for maintaining upward momentum, with a target of conquering the $1.00 mark in the coming days.

The bullish trend of Stacks stabilizes as liquidity drives the DeFi ecosystem

Bitcoin's sidechains have been making a strong impact recently, with Stacks being the most prominent – the leading chain in this ecosystem. STX, the native token of Stacks, has surged over 80% since the bottom of $0.47 in April, reflecting the widespread bullish sentiment in the cryptocurrency market as Bitcoin briefly surpassed the $94,000 mark last Wednesday.

According to on-chain data released by the Stacks development team on platform X, the breakout of STX is likely driven by the increasing wave of interest in DeFi products on the network, combined with several other important underlying factors.

Notably, the market capitalization of stablecoins built on Stacks has surged dramatically – over 400% – reaching nearly 6 million USD. As illustrated in the chart below, Stacks is currently holding the third position in this field, only behind Cronos and Morph.

Market capitalization of stablecoin on Stacks | Source: CryptoRankThe growing interest from institutions in the Bitcoin ecosystem continues to be a strong driving force behind the growth momentum of Stacks. Notable positive signals include Grayscale's official launch of the STX Trust Fund, marking a strategic step towards bringing STX closer to institutional capital.

In addition, some major exchanges like Crypto.com have begun to implement staking services for STX, opening up opportunities for investors to increase profits by locking tokens to receive rewards. The amount of STX being staked has increased significantly – an important indicator showing that investor confidence is becoming increasingly solid, amid a context where the cryptocurrency market is more active than ever.

According to monthly yield data from CryptoRank, STX has returned to a bullish zone after a series of three consecutive months of decline: -13.5% in January, -37.4% in February, and -27.1% in March. In April, STX's profit surged strongly, exceeding 44%, while also ending a three-year-long losing streak in the month of April – a significant turning point in the recovery journey of this token.

Monthly profit of Stacks (USD) | Source: CryptoRankThe derivatives market also clearly reflects the increasing bullish momentum, with total open interest (OI) rising 25.63% to 73.26 million USD in just the past 24 hours. At the same time, trading volume also surged by 54.4%, reaching approximately 283 million USD – a clear sign that liquidity is returning and traders' confidence in STX is being strongly reinforced.

Stacks Derivative Data | Source | Coinglass## STX price surges, approaching the $1 mark

As of the current time, the price of STX is fluctuating around $0.88, as the bulls continuously face obstacles at the key resistance level of $0.90 – coinciding with the (EMA) 200-period moving average on the 12-hour chart.

The relative strength index (RSI) is currently rising strongly into the overbought zone at 78.56, clearly reflecting the bullish momentum that is prevailing. With optimistic technical signals and increasing trading volume, the possibility of STX breaking through the $1 threshold is becoming increasingly reinforced.

STX/USDT chart on the 12-hour timeframe | Source: TradingViewThe overall cryptocurrency market on Friday is expected to maintain a bullish trend, thanks to the push from Bitcoin surpassing the psychological threshold of $93,000. However, the overbought condition – particularly with STX – may cause the upward momentum to stall, potentially triggering a slight correction before the weekend break. In the scenario of price decline, key support levels to watch include the downward trend line (the green dotted line), along with two important EMA lines: the 100-period EMA at $0.70 and the 50-period EMA at $0.66.

Disclaimer*: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions*

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