Stacks is a project that enables smart contracts and decentralized applications on the Bitcoin blockchain through a layer-1 solution. It operates on the Stacks (STX) token and aims to provide a more decentralized internet. The STX coin price is on an uptrend after taking a dip in December.
What is the goal of Stacks?
The Stacks project aims to create online architecture that eliminates the possibility of companies “being evil.” The developers even put up a billboard with the motto across the road from Google’s California headquarters.
Stack is an innovative platform that was developed differently from most cryptocurrency projects. The team spent eight years developing the concept, subjecting it to rigorous peer review by academics at Princeton and Stanford universities to uncover weaknesses.
Stacks analyzes the functions that make Bitcoin work and extends its functionality without the need for a hard fork or changing the original blockchain.
Due to its lightweight design, Stacks relies on a separate data storage solution. It outsources this service to commercial cloud storage providers via its storage system, Gaia. Gaia allows those who are wary of cloud storage to store their data themselves.
Stacks also includes an integrated naming service, the Blockstack Naming Service, which allows users to assign names to assets that are readable by humans. The assets are secured using a combination of public and private keys.
How Miners Can Earn STX
Miners can earn Stacks (STX) tokens by committing BTC, while STX holders can stack their tokens to earn Bitcoin. The profitability of mining depends on the price of STX vs BTC and the growth of Clarity-powered smart contracts.
Without growth, the price of STX may suffer and miners may not commit BTC for Stacks tokens, which could impact smart contract developers and users.
Technical Analysis & Prediction of STX Coin Price
At the press time, on the daily time frame, the STX coin price is trading at the level of $1.57. The immediate resistance level is at $1.71 and it seems a tough one for the bulls to break. However, if this resistance is broken, the target price for the STX coin price will be $1.93.
Moreover, the 50-day and the 150-day EMAs have done a bullish crossover, which implies an uptrend in the STX coin price. Therefore, the price prediction for the long term will be bullish unless the current support level gets broken.
Conclusion
Stacks is a project that enables smart contracts and decentralized applications on the Bitcoin blockchain. Miners can earn Stacks (STX) tokens by committing BTC, while STX holders can stack their tokens to earn Bitcoin. The price prediction is bullish in the long term unless the support level breaks.
Technical Levels
- Support Levels: $1.38 and $1.17
- Resistance Levels: $1.71 and $1.93
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
Source: https://www.thecoinrepublic.com/2024/01/04/stacks-price-prediction-will-stx-break-the-major-resistance/