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Stacks' STX Soars 27% on Positive Comments From Tim Draper
The venture capitalist believes applications built on bitcoin will perform similarly to how Microsoft applications did in the internet boom.
Stacks [STX], the native token of Stacks Network, zipped higher by 27% on Wednesday following a series of positive comments from legendary investor Tim Draper.
Stacks is a layer 2 network designed to enable smart contracts on bitcoin [BTC]. The token was distributed through the first-ever U.S. Securities and Exchange Commission (SEC) qualified token offering in 2019.
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"I'm really pretty excited about Stacks," Tim Draper said in an interview on CoinBureau. "Most of what I've been investing in have been things that start to move the important applications over to Bitcoin. So I think that's a really interesting trend and we're thinking it's going to go the way Microsoft did."
Draper said earlier this year that he expects bitcoin to rise to $250,000 by 2025.
Stacks has surged in prominence over the course of year following the emergence bitcoin-based NFT projects like Ordinals. The amount of capital locked on Stacks has risen from $7 million to $50 million since the turn of the year, according to DefiLlama.
The token, which began the year trading at $0.21, is currently at $1.48, marking its highest level since February, 2022, per CoinDesk data.
Oliver Knight
Oliver Knight is the co-leader of CoinDesk data tokens and data team. Before joining CoinDesk in 2022 Oliver spent three years as the chief reporter at Coin Rivet. He first started investing in bitcoin in 2013 and spent a period of his career working at a market making firm in the UK. He does not currently have any crypto holdings.
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