STX surges 23% – Stacks L2 gains as Bitcoin yield earning becomes easier

Stacks [$STX] is up more than 23%, leading all top 100 cryptos by market cap in terms of daily gains. The altcoin broke from a descending channel last week, thanks to a broader crypto market rebound.

Stacks, a Bitcoin [$BTC] Layer 2 solution, is benefiting from the surge in prices of $BTC. Bitcoin broke the $80,000 wall, prompting market-wide strength.

The continuous expansion of Bitcoin’s utility, especially the staking feature, has driven Stacks’ prices. In fact, the social mentions of $STX increased by 31.7% this week, as per LunarCrush. Here is why:

Decoding Stacks’ network usage

Recently, Stacks announced that self-custodial Bitcoin staking would go live with the Genesis Bond on the 10th of September. The upgrade allows holders to earn $BTC-denominated yield while their coins stay in Bitcoin’s base layer under their own keys.

Thus, Bitcoin holders will finally get productive capital without giving up custody or leaving $BTC’s security models.

As a result, network usage has spiked as participants embrace this $BTC utility. The Total Value Locked (TVL) slowly increased from $83 million to $102 million in six days.

However, DEX volume more than doubled in the same period. It grew from $960K to $2.18 million, as per DefiLlama.