Bitcoin Layer 2 Blockchain Stacks Surges as Tim Draper Shows Support
The price of Stacks (STX), a layer 2 blockchain for Bitcoin (BTC), has experienced a significant increase following billionaire investor Tim Draper’s endorsement of the protocol. From trading at $1.18 on Tuesday evening, STX is now valued at $1.53, representing a 26% surge since Draper’s comments gained traction on social media.
The Bitcoin Migration
During an interview with Coin Bureau, Draper identified Stacks as the first standout crypto project he explored this year. Launched in January 2021, Stacks is a blockchain that enables smart contracts and NFTs while settling all transaction data on the Bitcoin blockchain. It serves as a scaling layer for BTC and incorporates features commonly associated with other networks.
“Most of what I’ve been investing in have been things that start to move the important applications over to Bitcoin,” stated Draper. He compared this trend to Microsoft’s strategy of acquiring successful software applications developed by smaller companies.
Draper believes that Bitcoin is experiencing a consolidation phase where developers migrate applications from newer networks to Bitcoin once they have proven their longevity and effectiveness.
“A consolidation around Bitcoin is starting to happen,” said Draper, emphasizing its strong brand compared to other cryptocurrencies.
Ignore Bitcoin FUD, Says Draper
Draper has consistently supported Bitcoin as a superior alternative to fiat currencies due to its decentralization and security. Although the network faces technical limitations like slow transactions, Draper highlighted the lightning network and other layer 2 innovations that address these concerns.
“I think that most of those old arguments are moving out and that new arguments of ‘hey, let’s standardize on Bitcoin’ are moving in,” Draper stated.
Earlier this year, the Ordinals protocol facilitated significant adoption of NFTs and tokenization on the Bitcoin network. Stacks, which is supportive of Ordinals and also enables Bitcoin-based NFTs, has gained popularity as a result.
“Tim Draper is a legendary investor, and seeing him excited about Stacks and Bitcoin L2s made my day,” expressed Stacks co-creator Muneeb Ali.
Hot Take: Tim Draper’s Endorsement Boosts Stacks
Stacks (STX) has experienced a surge in value following billionaire investor Tim Draper’s endorsement. Draper praised Stacks as a standout crypto project that demonstrates the trend of migrating important applications to Bitcoin. He compared this trend to Microsoft’s strategy of acquiring successful software applications developed by smaller companies. Draper believes that Bitcoin is undergoing a consolidation phase, attracting developers from other networks once they have proven their effectiveness. Despite technical limitations, Draper dismissed concerns about Bitcoin and highlighted layer 2 innovations like the lightning network. The popularity of the Ordinals protocol has contributed to the increased interest in Stacks, which supports Bitcoin-based NFTs.
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