Cosmo Jiang, portfolio manager at digital asset-focused hedge fund Pantera Capital, highlights one cryptocurrency project that could see explosive activity this year.
Stacks (STX) aims to implement smart contracts and decentralized finance (DeFi) applications on Bitcoin (BTC). The project’s native token, STX, is up nearly 95% over the past month.
Jiang note Trading activity on Stax also surged.
“User activity is already telling us right before the Bitcoin ETF (exchange-traded fund). They want to do more. Stack’s trading activity continues to grow. What will it look like in April when the Nakamoto upgrade increases transaction speeds by more than 100x?
Networks are flywheel businesses. The flywheel started spinning faster.”
According to BuyBitcoinWorldwide.com, the Stacks Foundation has stated that the Nakamoto upgrade is scheduled to be released before the Bitcoin halving, which is currently expected to occur on April 17.
The upgrade aims to reduce the time it takes to mine and confirm user-submitted transactions from about 10 minutes to a few seconds, according to Resh Singh, business development manager at STX:LDN.
“Fast confirmation times are critical to building scalable decentralized applications across the stack, especially decentralized finance apps where price volatility is a key risk. By confirming transactions in seconds rather than minutes, DeFi on Stacks can reach performance comparable to centralized exchanges.”
STX:LDN is a London-based community-led organization promoting Bitcoin and stack development and educational events.
STX is trading at $1.76 at the time of this writing. The 39th-largest cryptocurrency asset by market capitalization has fallen more than 11% in the past 24 hours.
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