Key Points
- Stacks (STX) Nakamoto upgrade receives unanimous approval, leading to a surge in STX price.
- The upgrade is expected to improve the network’s efficiency and contribute to the development of a Bitcoin iteration called sBTC.
The Nakamoto upgrade of the Bitcoin layer 2 network, Stacks (STX), has gained notable attention after receiving unanimous approval from its community.
The Stacks Foundation reported that every Stacked STX voter approved the upgrade, with 99.98% of non-stackers also supporting the proposal.
Upgrade Timeline and Features
With this community endorsement, the Nakamoto Testnet is scheduled to be launched on March 25, 2024. The Nakamoto Mainnet (Instantiated) and the Nakamoto Mainnet (Activated) are set to follow on April 15–29 and May 15–29, respectively.
According to the project’s white paper, the upgrade is anticipated to enhance the network’s performance significantly. It promises faster block times, guaranteed Bitcoin transaction finality, reduced forking risks, and a decrease in the maximum extractable value (MEV) associated with Bitcoin transactions.
Additionally, the upgrade will introduce sBTC, a trust-minimized version of Bitcoin tailored for the Stacks ecosystem. This development aims to elevate the DeFi experience on Stacks to match the capabilities of other major platforms.
Community Engagement and Price Impact
The Stacks Foundation has been encouraging community participation in the testnet to promote development and gather essential feedback for the mainnet’s success.
Following the upgrade’s approval, the STX price saw a significant increase, rising over 13% on Wednesday morning. Despite Bitcoin (BTC) falling below $61,000, STX hit an intraday high of $2.96, moving closer to its all-time high of $3.47, achieved on March 11, 2024.
Stacks experienced substantial growth in 2023, as per a Messari analysis. The report revealed a 363% quarterly and 773% annual increase in the project’s total value locked (TVL), reaching $61 million. The average daily miner revenue also saw a whopping 1,015% annual rise to $78,000.
Analysts hold a positive outlook for STX’s future, with some predicting the price to hit $45 in the coming years. As of the report’s publication, STX was trading at $2.93, reflecting a 24-hour gain of 8.2%.
