STX Surges 56% as BitGo Integrates sBTC, Boosting Bitcoin Layer-2 Protocol
2min read STX, the native token of the Bitcoin layer-2 protocol Stacks, has experienced a significant surge, increasing by 56% over the past week. This surge has positioned stx as the top-performing cryptocurrency among the top 100 by market value. The token reached a two-month high of 92 cents on Friday, following a 21% gain in the past 24 hours.
Stacks serves as a leading layer 2 solution for running smart contracts and decentralized applications on the Bitcoin blockchain. The recent price surge coincides with BitGo's announcement that it will integrate sBTC for its customers. This integration allows bitgo clients to explore yield-generating opportunities on Stacks through sBTC, a synthetic derivative that represents bitcoin in a 1:1 ratio on the Stacks blockchain. Abishek Singh, a product manager at BitGo, highlighted the significance of this integration, stating that sBTC opens the door to programmable, decentralized financial products without compromising Bitcoin’s core principles.
BitGo brings substantial credentials to this partnership, having processed over $3 trillion in transactions and managing more than $48 billion in staked assets. STX plays several important roles in the Stacks ecosystem, including enabling the connection between Stacks and Bitcoin, supporting smart-contract creation, and enabling network governance. The token is also used to pay transaction fees and is central to the proof-of-transfer consensus mechanism, allowing STX holders to earn BTC by locking their tokens.
The sBTC token gives holders access to Stacks’ DeFi ecosystem while maintaining price parity with bitcoin. A new sBTC withdrawal facility, expected to launch on April 30, will allow institutions to move seamlessly between BTC and sBTC. This development will open doors for creating new applications that combine Stacks’ smart contract capabilities with Bitcoin’s security features.
Ask Aime: What's driving the 56% surge in STX, the top-performing crypto among the top 100 by market value?
The Stacks-based decentralized finance ecosystem is showing strong growth in liquidity. The protocol recently announced that stablecoin supply increased over 400% in the first quarter, making Stacks the third-largest gainer in stablecoin supply. This substantial increase in liquidity indicates growing interest and activity in the Stacks ecosystem, providing stronger foundations for future development and adoption.
From a technical perspective, STX has broken out from a descending wedge pattern that formed starting in February. This breakout, confirmed on April 21, likely marks the end of a five-wave corrective decline and sets the stage for a potential trend reversal. The breakout has led to renewed momentum, with STX now approaching the psychological $1 mark. Technical indicators including the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) created bullish divergences before the rally, and these indicators continue to show strength, with neither generating bearish divergences that would predict a reversal.
If STX can break above the $1 resistance level, the next target would be near $1.38, which aligns with the 0.382 Fibonacci retracement level. However, shorter-term charts suggest STX might be nearing a local top. On the six-hour timeframe, RSI and MACD show bearish divergences, hinting at slowing momentum as the token approaches $1. The price action suggests STX may experience a brief correction toward the $0.78-$0.80 area before continuing its upward trend. This level represents a previous resistance zone that could now serve as support.
STX previously peaked at $3.01 in December 2024 before entering a multi-month correction phase. The current breakout and momentum could signal the beginning of a new uptrend for the token. As the April 30 implementation date for the sBTC withdrawal facility approaches, market participants will be watching closely to see if STX can maintain its upward trajectory and break through the key $1 resistance.
