STX Surges 23% as Stacks L2 Gains Momentum from Bitcoin Yield Expansion

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.