Stacks' STX, a Bitcoin layer-2 token, has surged by 50% in four weeks

While major cryptocurrencies remain choppy, STX, the native token of the Bitcoin layer-2 project Stacks, is rallying. The cryptocurrency has surged nearly 10% in 24 hours, 14% over the past week and more than 50% in four weeks, outperforming bitcoin BTC$83,696.96, ether ETH$2,500.31, XRP (XRP) and other cryptocurrencies.

The outperformance likely reflects investor interest in Stacks’ non-custodial bitcoin staking architecture. This framework lets BTC holders stake and earn yield directly on the main Bitcoin blockchain while retaining strict control of their private keys. In contrast, traditional frameworks require users to wrap their assets into synthetic tokens (like wBTC) or move funds over cross-chain bridges to earn additional yield.

Stacks’ framework relies on a mechanism called "bonding," which requires participants to lock up assets to secure the network. The "Bonding Period 3,” due in November, requires participants holding native STX to lock a specific ratio of STX alongside their BTC — equivalent to roughly 5% of the total value of their BTC — to successfully secure protocol stacking capacity.