Stacks (STX) Price: Jumps 56% to Lead Top 100 Cryptocurrencies This Week

TLDR

• STX has surged 56% in the past week, becoming the best-performing top 100 cryptocurrency
• BitGo is integrating sBTC, enhancing institutional access to the Stacks ecosystem
• Stablecoin supply in the Stacks-based DeFi ecosystem increased over 400% in Q1
• STX broke out from a descending wedge pattern, signaling a possible trend reversal
• Technical indicators suggest a possible short-term pullback before continuing upward

STX, the native token of Bitcoin layer-2 protocol Stacks, has surged 56% in seven days to become the week’s top-performing cryptocurrency among the 100 largest by market value. The token hit a two-month high of 92 cents on Friday after gaining more than 21% in the past 24 hours.

Stacks serves as the world’s leading layer 2 solution for running smart contracts and decentralized applications on the Bitcoin blockchain. The recent price surge comes as BitGo, a digital asset custody and infrastructure provider, announced it would integrate sBTC for its customers.

This integration allows BitGo clients to explore yield-generating opportunities on Stacks through sBTC, a synthetic derivative that represents bitcoin in a 1:1 ratio on the Stacks blockchain.

“SBTC opens the door to programmable, decentralized financial products without compromising Bitcoin’s core principles — and we’re just getting started,” said Abishek Singh, a product manager at BitGo.

BitGo brings substantial credentials to this partnership, having processed over $3 trillion in transactions and managing more than $48 billion in staked assets.

Expanding Bitcoin’s Utility

STX plays several important roles in the Stacks ecosystem. It enables connection between Stacks and Bitcoin, supports smart-contract creation, and enables network governance.

The token is also used to pay transaction fees and is central to the proof-of-transfer consensus mechanism. This allows STX holders to earn BTC by locking their tokens.

The sBTC token gives holders access to Stacks’ DeFi ecosystem while maintaining price parity with bitcoin. A new sBTC withdrawal facility, expected to launch on April 30, will allow institutions to move seamlessly between BTC and sBTC.

This development will open doors for creating new applications that combine Stacks’ smart contract capabilities with Bitcoin’s security features.

Growing Ecosystem Liquidity

The Stacks-based decentralized finance ecosystem is showing strong growth in liquidity. The protocol recently announced on social media that stablecoin supply increased over 400% in the first quarter.

This makes Stacks the third-largest gainer in stablecoin supply behind only Morph and Cronos. According to data from DefiLlama, the total stablecoin supply in the ecosystem reached nearly $7 million, up from around $1 million in early January.

This substantial increase in liquidity indicates growing interest and activity in the Stacks ecosystem, providing stronger foundations for future development and adoption.

Technical Analysis Points to Continued Strength

From a technical perspective, STX has broken out from a descending wedge pattern that formed starting in February. This breakout, confirmed on April 21, likely marks the end of a five-wave corrective decline and sets the stage for a potential trend reversal.

Stacks Price on CoinGecko

The breakout has led to renewed momentum, with STX now approaching the psychological $1 mark. Before the rally, technical indicators including the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) created bullish divergences.

These indicators continue to show strength, with neither generating bearish divergences that would predict a reversal.

If STX can break above the $1 resistance level, the next target would be near $1.38, which aligns with the 0.382 Fibonacci retracement level.

However, shorter-term charts suggest STX might be nearing a local top. On the six-hour timeframe, RSI and MACD show bearish divergences, hinting at slowing momentum as the token approaches $1.

The price action suggests STX may experience a brief correction toward the $0.78-$0.80 area before continuing its upward trend. This level represents a previous resistance zone that could now serve as support.

STX previously peaked at $3.01 in December 2024 before entering a multi-month correction phase. The current breakout and momentum could signal the beginning of a new uptrend for the token.

As the April 30 implementation date for the sBTC withdrawal facility approaches, market participants will be watching closely to see if STX can maintain its upward trajectory and break through the key $1 resistance.