Stacks Price Prediction 2024: What Next for STX as Nakamoto Upgrade Looms?

Key Takeaways

• STX, a crypto approved by the United States Securities and Exchange Commission, has performed well recently.
• Designed to support a platform that brings DApps to Bitcoin, it has been around since 2019.
• Can it maintain its run of good form?
• One Stacks price prediction says the coin can reach $7.46 in 2025.

The Stacks cryptocurrency is a rare outlier. One of the few cryptos explicitly approved  by the United States Securities and Exchange Commission (SEC), the coin, which helps people use the Bitcoin (BTC)  blockchain in much the same way they would Ethereum (ETH), still suffered when the market fell following the SEC’s lawsuits against Binance and Coinbase in early June 2023.

However, the news of investment firm Blackrock filing for a Bitcoin exchange-traded fund (ETF) helped boost the price later on in the month, with STX recovering from the market slump better than most, even if the best of the recovery was over by early July. 

In late 2023 and early 2024, excitement about spot Bitcoin ETFs saw it reach its best price in almost two years in early January.

Although the price has fallen back below $2 since then, Stacks is keeping itself busy, promising  a “DeFi Summer” and getting ready for the Bitcoin halving later this year.

Stacks has also been busy in gearing up to implement its Nakamoto Upgrade tentatively scheduled for April 16, aligning closely with the estimated Bitcoin halving date of April 20. Through this upgrade, the protocol aims to transition into a Bitcoin Layer 2 chain.

With this upgrade on the horizon, the protocol has seen a substantial increase in the total value of crypto assets locked, accompanied by a weekend rally that boosted the token’s price by nearly 35%.

Stacks did not immediately respond to a request for comment.

But what is Stacks (STX)? How does Stacks work? Let’s take a look and see what we can find out, and also examine some of the Stacks price predictions that were being made on March 25, 2024, too.

Stacks Coin Price Prediction 

Let’s cast our eyes over some of the Stacks price predictions that were being made on April 16, 2024. It is vital to remember that price predictions, especially when it comes to something as volatile as crypto, are very often wrong. Also, it is worth pointing out that many long-term crypto price predictions are made using an algorithm, which means they can change at any time. 

First, CoinCodex  had a short-term Stacks price prediction that said it would trade at $2.63 on April 21 before climbing to $2.72 by May 15. The site’s technical analysis was bearish, with 16 indicators sending negative signals and 13 making bullish ones.  

Stacks Price Prediction for 2024

CaptainAltCoin  said Stacks would get to $2.11 in December this year. Bitnation  said it would hit $4.31 and DigitalCoinPrice  saw it getting to $5.76 in 2024. 

Stacks Price Prediction for 2025

Moving on, CaptainAltCoin was optimistic, saying STX would be worth $7.46 in 2025. Bitnation was a bit more cautious, saying it would trade at $6.04 then. DigitalCoinPrice’s Stacks price forecast said it would get to $6.66 next year. 

Stacks Price Prediction for 2030

As far as a more long-term Stacks price prediction went, DigitalCoinPrice argued it could trade at $19.59 in 2030. Bitnation had it worth $15.37 then. Meanwhile, PricePrediction.net ‘s STX price prediction said it would trade at $22.09 at the start of the next decade.   

Google Gemini Price Prediction for Stacks (as of April 16)

Google’s Gemini AI platform gave the following price prediction for Stacks on April 12. Please remember that the exact price prediction of an asset or cryptocurrency in the future is nearly impossible to achieve. Additionally, artificial intelligence price predictions are predicated on past performances and are not entirely accurate.

Short Term (Next three months)

• Expected price: $3.73

• Factors to Consider:
  • Overall market sentiment: If the general cryptocurrency market is bullish, STX is more likely to go up. Conversely, a bearish market could see STX’s price decline.
  • News and developments: Any major news or developments related to Stacks, Bitcoin-based NFTs, or the upcoming Bitcoin halving could impact the price.
  • Regulations: Regulatory changes could also affect the price of STX.

Medium Term (Next six months)

• Expected price: $8

• Factors to Consider:
  • Overall market sentiment: The general sentiment of the cryptocurrency market can significantly impact the price of individual coins. If the market is bullish, Stacks is more likely to go up.
  • Developments on the Stacks network: Any major news or developments on the Stacks network could affect the price.
  • Regulations: Regulatory changes could also impact the price of Stacks.

Long Term (Next five years)

• Expected price: $50

• Factors to Consider:
  • Market Volatility: The cryptocurrency market is known for its ups and downs. Unforeseen events can significantly impact prices.
  • Stacks Development: The success of Stacks’ core functionalities, partnerships, and adoption will influence its price.
  • Overall Crypto Market Trends: The general health of the cryptocurrency market can play a major role in Stacks’ price.

Recent Updates from Stacks

Stacks said  the Stacks Nakamoto Upgrade to become a true Bitcoin L2.

Advantages and Disadvantages of Stacks

Blockchain analytics company Messari recently released a quarterly report  on Stacks. In it they highlighted its positive work with Bitcoin, and outlined some key advantages and disadvantages to the platform.

It found Stacks

• Had 7,094 average daily transactions, up from 5,447 year-on-year and 9,174 quarter-on-quarter.
• 1,686 average active daily addresses, up from 1,604 year-on-year but down from 3,054 quarter-on-quarter.
• An average market cap of $954.7 million, up from $590.3 million year-on-year but down from $1.29 billion quarter-on-quarter.
• Total value locked (TVL) of $24.7 million, up from $13.7 million year-on-year but down from $26.7 million quarter-on-quarter.

Advantages of Stacks

Messari says that Stacks

• Was able to cash in on growing interest in the Bitcoin blockchain earlier in the year, spurred by trading in Bitcoin Ordinals, the blockchain’s equivalent of non-fungible tokens (NFTs).
• Has a lot of potential for ecosystem growth.
• Can help give people access to Bitcoin mining pools, thus potentially lowering the need for a very powerful computer to mine BTC.

Disadvantages of Stacks

Messari also says Stacks

• Is potentially too reliant on the ALEX decentralized finance (DeFi) protocol, which has 90% dominance over the Stacks DeFi ecosystem.
• Had an issue with staking rewards caused by a bug.
• Saw some metrics drop over the three months.

STX Price History

It’s now time to take a quick look at some of the highlights and lowlights of the Stacks price history . While past performance should never be taken as an indicator of future results, knowing what the coin has done since it first came on the market can help give us some useful context if we want to either make or interpret a Stacks price prediction.

When STX first came onto the open market in October 2019, it was worth about $0.23. The crypto’s price fluctuated, but not by much, before it grew towards the end of the following year to close 2020 at $0.3962.

Early 2021 saw a crypto bull market. STX shot up, breaking past $1 in February and hitting a high of $2.82 on 5 April. After that, it was downhill again, briefly falling below the dollar in June.

In October, it went back up past $2 on its way to an all-time high of $3.61 on 16 November. The coin then dropped, but its end-of-year price of $2.17 represented an annual gain of nearly 450%.

2022 was not a good year for either crypto as a whole or the Stacks coin. Although it reached a high of $2.64 in January, it fell below the dollar following Russia’s invasion of Ukraine on 24 February, before recovering in March.

The collapse of the Terra (LUNA) blockchain in May sent STX crashing down and by June 14 it was worth $0.3091. The coin recovered to trade above $0.50 in August, but the collapse of the FTX (FTT) exchange meant that it closed the year at $0.2097, more than 90% less than at the end of 2021.

Stacks in 2023 and 2024

2023 was a bit more encouraging, although it was not all plain sailing. The coin went above the dollar for the first time in nearly a year in early March as it reached a high of $1.30 on 22 March, before falling back down by the end of the month.

On 21 June, it reached a high of $0.8673. It then entered a decline, reaching a low of $0.4217 on September 11. Since then, it has gone back up. On October 3, 2023, Stacks was worth about $0.5535. It then went on to peak at $0.7467 on October 23 before dropping to $0.5881 on November 22. By November 29, though, excitement about a vote on changes to the network saw it shoot up to trade at around $0.78.

The token rallied throughout December, boosted by excitement about potential spot Bitcoin ETFs. It closed the year at $1.50, an annual rise of 615%.

Stacks peaked at $2.05 on January 9. Once spot Bitcoin ETFs were approved the following day, it started to slump and, on February 8, 2024, it was worth about $1.75. But it regain momentum and hit a new all-time-high at $3.6559 on March 30, 2024. On April 16, 2024, it’s worth $2.55.

At that time, there were about 1.45 billion STX in circulation, out of a maximum supply of around 1.82 billion. This gave the coin a market cap of around $3.70 billion, making it the 27th largest crypto by that metric.

Stacks Price Analysis

STX reached a new all-time high of nearly $4 on April 3, following a significant rise from $1.35 on January 23, increasing by more than 200%. Shortly after, it made a sharp downturn, with STX losing 44% of its value and reaching a low of $2.10 on April 13. 

The recent peak likely marked the culmination of the uptrend that began in September 2023, starting from a low of $0.50. This pattern comprises three phases of a typical five-wave sequence, suggesting that making a new all-time high may lead to a correction for the fourth wave. The likelihood of this was supported by the daily chart’s RSI, which entered the overbought territory, exceeding 70% on February 24.

As this correction phase unwinds, it is anticipated that a further ascent will occur, forming the fifth wave and completing the sequence. It could reach as high as $5.

Is Stacks a Good Investment?

It is hard to say. On one hand, the crypto market can be an unforgiving place. STX investors will have learned this when their coin lost more than 90% of its value, a worse performance than the market average, in 2022.

On the other hand, the fact that STX has been given the SEC’s seal of approval could stand it in good stead during this time of regulatory uncertainty. Its links to Bitcoin could also see it emerge as a real winner during a tough time. As always with crypto, you will need to make sure that you do your own research before deciding whether or not to invest in Stacks.

Will Stacks go up or down?

No one can really tell right now. While many of the longer-term STX price predictions are optimistic, price predictions end up being wrong more often than not. You should also remember that prices can, and do, go down as well as up. 

Should I invest in Stacks?

Before you decide whether or not to invest in Stacks, you will have to do your own research, not only on STX, but on other, similar, coins and tokens, like Polygon (MATIC) and Arbitrum (ARB). Ultimately, though, you will have to make this decision for yourself and, more importantly, you should make sure you never invest more money than you can afford to lose. 

Who are the Founders of Stacks?

Software engineers Muneeb Ali  and Ryan Shea  founded Stacks.  Princeton PhD Ali founded Trust Machines, which is a platform for Bitcoin-related applications, in 2021. Shea, meanwhile, helped set up Facebook’s GraphMuse app in 2012. 

Fact Box

From the Whitepaper

Stack’s whitepaper  says that it wants to serve as a kind of bridge between the solidity of Bitcoin and the development potential of Ethereum.

It says: “Stacks is a Bitcoin layer for smart contracts; it enables smart contracts and decentralized applications to trustlessly use Bitcoin as an asset and settle transactions on the Bitcoin blockchain.”

Stacks (STX) Explained

One of the biggest splits in crypto is between Bitcoin and Ethereum (ETH). At the heart of the debate is whether a blockchain should focus on supporting a crypto, like Bitcoin, or should allow people to build their own programs, like Ethereum. Since Bitcoin is the largest crypto out there, there will be people who want to use its reach and power to create their own decentralized applications (DApps) but the chain does not allow them to do so.

Stacks, which was founded in 2013, with the first version of its blockchain coming in 2018 and the current chain coming online in 2020, hopes to change that. 

Supported by the STX coin, the platform is designed to connect with the Bitcoin blockchain. It allows users to utilize smart contracts, computer programs that automatically execute once certain conditions are met, to create their own applications. 

How Stacks Works

Stacks makes use of a Proof-of-Transfer (PoT) consensus mechanism to add blocks to the blockchain and earn rewards. This means that users transfer a, in this case Bitcoin, to other participants in the network in order to secure and grow the blockchain, effectively paying with BTC to earn STX.

As far as the STX coin goes, the whitepaper explains how it works when it says: “Stacks miners use Bitcoin to mine newly minted Stacks. Stacks holders can lock their STX in consensus to earn Bitcoin, making STX a unique crypto asset that is natively priced in BTC and gives BTC earnings.” 

Apart from miners, there are other Stacks users called Stackers. These people stake their STX for about two weeks or so. This means they can run a computer, or node, on the network, earning Bitcoin for doing so. 

STX can also be bought, sold, and traded on exchanges. 

Stacks Attention Tracker

Here is a chart for Stacks STX Google search volume for the past 90 days. This represents how many times the term “Stacks STX” has been Googled over the previous 90 days. 

FAQs 

Further reading

Disclaimer 

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

About the Author

Peter Henn

Peter Henn has been a journalist since 2005. In that time, he has written for a variety of publishers including the Mail on Sunday and the Daily Express. He has previously covered the world of cryptocurrency for Currency.com and Capital.com, and has also written for ECigIntelligence.com and CBD-Intel.com. A graduate of the University of Liverpool, he is based in the United Kingdom. His hobbies include music, horse racing and performance art.

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