Stacks’ network upgrade pushes STX price up 18% in a week

Stacks (STX) has been regaining traction after a rocky start to September, experiencing a significant price surge of over 18% in the past week, according to CoinGecko. The platform, known for its Bitcoin layer-2 ecosystem, is seeing renewed interest from investors as several key developments continue to unfold.

Institutional Investors Eye Stacks

Anchorage Digital, a leading institutional wallet provider, recently announced its support for Stacks, signalling the potential for increased institutional involvement. This support could fast-track further development on the Stacks platform, allowing it to attract larger-scale investments and partnerships.

Nakamoto Upgrade and its Impact

The final phase of Stacks’ Nakamoto upgrade is generating significant buzz. Users and developers alike have highlighted the benefits of this upgrade, which is expected to dramatically improve user experience. The integration of sBTC, a Bitcoin-backed asset, with other major networks like Solana and Aptos is a key feature of this upgrade, potentially unlocking $1 trillion in liquidity within the Bitcoin economy.

Price Analysis and Forecasts

Despite its recent gains, STX’s price faces potential challenges. With its relative strength index (RSI) nearing overbought levels, the token may encounter resistance around $2.2. If bulls maintain the $2.02 support level, there is potential for further upward momentum in the short term.

However, a failure to hold this position could see the token drop towards $1.885 as market dynamics shift.

New Partnerships Fuel Optimism

The official Stacks account recently announced the launch of Hermetica.fi’s USDh, a Bitcoin-backed stablecoin designed to offer a yield-bearing synthetic dollar for retail investors.

Hermetica’s aggressive marketing, including a 25% APR staking offer, is likely to attract more users to the ecosystem.