- A certain Crypto VC doubled down on Stacks ahead of the launch of sBTC
- Although the price increase has been strong, whales have trimmed their exposure somewhat
Crypto VC Portal Ventures has doubled down Bitcoin [BTC] L2 scaling solution Stacks [STX]citing strong fundamentals and low selling pressure from unlocks.
Catrina Wang, partner at the VC, highlighted STX’s pioneering advantage as a BTC L2 with more than 10 years of experience.
Stacks catalysts
In light of the ongoing renaissance of BTC and the overall DeFi ecosystem, the upside potential for the Stacks protocol is high, according to Wang.
Furthermore, it is the only protocol that offers institutional investors native Bitcoin staking returns on the pioneering crypto network without counterparty risk. In fact, part of her report declared,
“A key driver for institutional adoption is the use of STX as the de facto provider of BTC staking. STX was the first SEC-compliant token issuance and in 2021.”
Additionally, 100% of STX’s supply is unlocked, meaning there is no more selling pressure from early investors like other venture-backed coins.
Whales limit exposure
Source: Hyblock
STX started December bullish, with a spike in whale positioning, especially in the futures market. However, at the time of writing, they had reduced their long positions, as evidenced by the decline in Whale vs. Retail delta.
Still, the upward trend has remained strong, as evidenced by the Average Directional Index (ADX) remaining above 20. If momentum continues, STX could hit the 2024 high of $3.8.
Source: STX/USDT, TradingView
On the price charts, $3.2 seemed to be the short-term roadblock that needed to be cleared before the uptrend could extend. As shown by the altcoin’s technical indicators, strong capital flows and buying pressure suggested that STX could soar higher on the charts.
Read stacks [STX] Price forecast 2024-2025
Here it is worth noting that the protocol may be set to launch it sBTC mainnet on December 16 to upgrade its own BTC staking. This would allow programmable BTC to move to the Stacks blockchain, opening up more DeFi opportunities on the BTC network.
In short, STX’s strong fundamentals were also reflected in its recent price action. While the upcoming update could be a positive catalyst, it remains to be seen how STX’s price responds in the short term.