Billionaire Tim Draper’s Endorsement Skyrockets Stacks Token by 25%
Stacks (STX), the native token of the Bitcoin layer 2 solution Stacks Network, surged by 25% for the day on Wednesday following positive remarks from renowned investor Tim Draper.
The boost in the token’s price came as Draper expressed his excitement about Stacks in a recent interview on the popular YouTube channel CoinBureau, citing his interest in projects that aim to bring “important applications” to Bitcoin.
“I think that’s a really interesting trend, and we’re thinking it’s going to go the way Microsoft did,” Draper said about the efforts to bring more decentralized applications (dApps) to Bitcoin.
Stacks is a layer 2 network specifically designed to bring smart contracts – traditionally used on platforms like Ethereum and Solana – to Bitcoin.
Unlike other Bitcoin layer 2 networks and sidechains such as Lightning and Liquid, the Stacks Network has its own native token, a move that has attracted criticism from some Bitcoin maximalists.
Tim Draper, a well-known American venture capitalist, has previously predicted that Bitcoin would reach $250,000 by 2025, and his positive sentiments toward Stacks thus appear to align with his broader outlook on the potential of Bitcoin.
STX sees increased traction in 2023
Stacks has seen a notable rise in prominence throughout the year, particularly with the emergence of Ordinals, a form of NFTs on the Bitcoin blockchain.
The total capital locked on the Stacks platform has seen a substantial increase, rising from just $7 million at the beginning of 2023 to over $57 million as of this writing, per data from tracking site DefiLlama.
Meanwhile, the price of the network’s native STX token has also risen substantially.
Starting the year at $0.21, Stacks is currently trading at $1.49, reaching its highest level since March 2022, according to data from CoinGecko.
