A Bitcoin-focused crypto asset is in the midst of a powerful price jump as the overall digital asset markets continue to turn green.
Stacks (STX) is a layer-1 blockchain that aims to boost the utility of Bitcoin (BTC) by enabling smart contracts, decentralized finance (DeFi) activity, non-fungible tokens (NFTs) and other applications to the flagship cryptocurrency.
Early on Sunday, Chris Burniske, who accurately called the bottom of the crypto market in November, said that while Ethereum (ETH) has massive amounts of layer-2 projects on it, Bitcoin so far only has two big projects.
He names Stacks and Lightning, Bitcoin’s most popular payments sidechain network.
“A plethora of highly valued L2 competition on Ethereum, while Bitcoin really only has Stacks and Lightning in the general-purpose L2 race (thus far).”
Hours later, Stacks’ native token STX exploded roughly 110% in less than a day, running from $0.35 to $0.77.
Burniske soon acknowledged the rally and said that his firm held STX as an investment.
“Repricing of overlooked opportunities happens fast in crypto… And yes, we hold STX.”
At time of writing, STX has corrected to the $0.57 range, currently with a market cap of $781 million.
Burniske, partner at venture capital firm Placeholder and former ARK Invest executive, previously called for several narratives to drive the next crypto bull market.
The crypto veteran said,
“Obvious hype themes into next expansion:
1) bridging and multi-chain services
2) AI meets blockchain
3) appchains and sector-chains”
Burniske also mentioned data availability layers or systems that store and provide consensus on the availability of data on a blockchain.
The former ARK Invest analyst clarified what he means by a “hype theme.”
“Given how some are responding, I should clarify that a ‘hype theme’ is a theme experiencing its first major cycle in the limelight. It’ll have some very real protocols pursuing the opportunity, as well as many other ‘grifter protocols’ slipstreaming the theme.”
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Featured Image: Shutterstock/Andy Chipus/sdecoret