- The price of the token and TVL increased after the community agreed to the proposal.
- Users would have access to the Nakamoto Testnet starting March 25.
After a long wait, the Stacks [STX] community has agreed to the deployment of the Nakamoto Upgrade. According to the voting results, no STX holders voted against the proposal.
However, Stacks also allowed non-STX holders to participate, with 99.98% clicking ‘yes’ on the approval.
Interestingly, STX’s value rose shortly after the result was made public. At the time of writing, AMCrypto noted that the price of STX was up 17.34% over the past 24 hours. This performance was better than that of Bitcoin [BTC]despite being a Layer-2 on the network.
Does this mean that there is no abuse?
Stacks suggested the Nakamoto Upgrade as a way to improve the network. One of the potential improvements includes faster Bitcoin block time transactions. Another is to lower the Maximum Extractable Value (MEV) associated with Bitcoin transactions.
The MEV is the maximum potential profit that a miner or validator can achieve by manipulating transactions. Therefore, the upgrade, when implemented, can reduce these occurrences. Also, validators and miners can receive their standard rewards without any problems.
However, the STX price wasn’t the only metric affected by the development. According to AMBCrypto’s analysis, the growth also spread to Total Value Locked (TVL).
Source: DeFiLlama
At the time of writing, data from DeFiLlama showed that the TVL had risen to a record high of $156.52 million. The more the TVL increases, the more secure and valuable the network is perceived to be.
Metrics correspond to direction
The increase in the metric also meant that market participants were confident that Stacks would deliver higher returns. Coincidentally, Stacks co-creator Muneeb Ali posted on X about the upgrade’s potential effect on the ecosystem.
Ali explained in his post that Stacks users can earn more BTC yield. He also said the growth in network usage would create a “positive economic loop.”
Source:
The development has also sparked discussion on various social platforms. Based on our perusal, we found that participants started comparing to Ethereum [ETH] and Solana [SOL].
This was because some of the transaction speed, security and decentralization that Nakamoto offers could increase Stacks adoption.
In the meantime, Token Terminal revealed that core developers and code commits on Stacks have increased.
Source: Token terminal
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The increase in these statistics implies that developers are optimistic about the L2. It also suggests that the project will release new features soon.
Additionally, Stacks provided a timeline for the completion of the upgrade. According to the project, Testnet will be live on March 25. It also stated that it would activate the Mainnet between May 15 and 29.