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Bitcoin NFT hype boosts Stacks (STX), but blockchain activity worries

Bitcoin NFT hype boosts Stacks (STX), but blockchain activity worries

Stacks (STX) is rising as the excitement surrounding Bitcoin NFT grows, but its blockchain activity is troubling.

While STX prices reached new yearly highs due to the possibility of hosting Bitcoin NFTs on Stacks, there are questions over whether the bullish thesis will be realized.

Stacks was one of the first blockchains to enable the production of Bitcoin Ordinals, putting it in an ideal position to capitalize on the hype. According to Ordinals, if NFTs cause network congestion, Bitcoin maximalist ideas will be put to the test.

Furthermore, Stacks is competing with initiatives in other blockchain ecosystems because it has not yet supplied all of the functions required to support an NFT trading ecosystem. According to the fundamental and analytical analysis conducted for the project, the price rise may have reached overbought conditions and will shortly reverse.

Ordinals’ future is questionable

When Casey Rodarmor inscribed an Ordinal on the Bitcoin network on January 29, there has been a surge in interest in inscribing NFTs. To the best of our knowledge, the following are the only two ways to get your hands on a copy of the book: over the internet, or through word of mouth.

When Casey Rodarmor inscribed an Ordinal on the Bitcoin network:

In terms of complicated operations such as decentralized trading, the infrastructure for Bitcoin NFT markets is still relatively immature when compared to Ethereum NFT marketplaces. There has to be a mechanism to develop markets and NFT minting platforms for Ordinals, according to various investors.

The Bitcoin developer community originally disallowed the use of the network for reasons other than payments because it clogs the network and boosts transaction fees. Some Ethereum users paid hundreds of dollars in transaction fees during the platform’s bull run in 2020 and 2021, when user activity soared. the and the and the and the. an an an an an an a

A CoinShare article suggests that the acceptance of Ordinals will once more depend on whether the technique for adding new data to the Bitcoin blockchain is socially acceptable, which is bound to produce difficulties like network congestion and higher fees.

The article goes on to describe earlier, unsuccessful attempts to conduct smart contract operations on the Bitcoin blockchain, concluding that “similar projects of Bitcoin’s past have had minimal impression on investors and users alike.”

When the instrument exploded in early February, there was a significant increase in the number of Ordinals inscribed on Bitcoin. The increase slowed due to a lack of trading infrastructure, with fewer than 10,000 NFTs registered on most days.

The native STX token of Stack blockchain increased in value by 256% in February as a result of the excitement surrounding Bitcoin NFTs and an anticipated project upgrade.

It will be fascinating to observe how the Bitcoin community reacts to increased network congestion and Bitcoin costs if the Ordinals hype spreads.

Speculation drives up stack prices, but activity is low.
Stacks hopes to increase user access to Bitcoin Ordinals by easing minting operations and hosting markets.

Stacks 2.1 release

On February 22, the Stacks Foundation, the blockchain’s administrators, released Stacks 2.1, an update to the protocol that adds EVM compatibility and synthetic Bitcoin (sBTC) via a secure connection to Bitcoin.

Also, if demand for.BTC addresses increases, the Stacks network, where the.BTC naming service is situated, may see a lot of trading activity. The A.BTC Stacks address is presently disconnected from the Bitcoin network. Users cannot send or receive Bitcoin at these addresses, unlike its.ETH cousin.

Following the 2.0 upgrade, Stacks will enable the direct transfer of Stacks assets to Bitcoin addresses. It will give you access to and that will give you access to and that will give you access to and that will give you access to and that will give you access to and that will give you access to and that will give you access to and that will give you access to and that will give you access to and that will give you We’ll have to wait and see if the feature appeals to Bitcoin users.

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About MahKa

MahKa loves exploring the decentralized world. She writes about NFTs, the metaverse, Web3 and similar topics.

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