The hostile market environment has seen Stacks (STX) continue its downward spiral as pressure mounts on the bears. According to Coin geckoThe token is down almost 23% since last week, exacerbated by the current correction phase the market has entered. The latest market data shows that major cryptocurrencies are loving it Bitcoin And Ethereum showing a decline of 10% since last week, Pull the market down by 2%.
However, several developments could help slow the token’s downward movement. These developments show that Stacks is the first layer-2 for the best cryptocurrency on the market.
Stacks: big news for investors and BTC enthusiasts
Although the market is incredibly bearish, Stacks remain attractive to both institutional and retail investors.
Ever since the first step of the Nakamoto upgrade rolled out On April 22nd, the newly introduced role of ‘Signers’, their self-made term for validators, increased significantly in size. According to them blog post on August 1, 39 blockchain institutions signed up to Stacks as signatories.
Among the signatories is Xverse, a Bitcoin wallet provider that deals with the BRC-20 standard. This large onboarding will result in a larger user base, giving Stacks a major advantage as layer 2s on the Bitcoin blockchain attract more attention.
However, the partnership announcement made between Stacks and Aptos during the Bitcoin Builders Conference created some buzz for the two. According to a key takeawaysAptos will join Stacks as a signatory, bringing the total number of signatories to 40, along with the launch of a working group to enhance collaboration between the two organizations.
Stacks 🤝 @Aptos live on stage at the Bitcoin Builders Conference!
🟧 @AptosLabs Head of Ecosystem Neil Harounian spoke with @StacksOrg Chairwoman Brittany Laughlin on forming a working group, and on the Aptos Foundation becoming a signatory for Stacks.
More information 1/3 👇 pic.twitter.com/EFTsIntD6M
— stacks.btc (@Stacks) July 31, 2024
Since the start of signer onboarding, approximately 118 BTC have been distributed to the various institutions. This amount totals over $7 million at Bitcoin’s current spot price of $60.7k.
Investors should pay attention to these levels
At the time of writing, STX’s current position is still held by the bears as the current market environment encourages selling rather than buying. But the bulls are mounting a defense around the $1,460 price floor.
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This is huge for investors who are bullish on STX as it gives the bulls strong support for a possible upside move. However, the possibility of a bullish breakout remains uncertain. The market’s current downtrend is supported by the fact that the major cryptocurrencies are still bearish in the short to medium term.
If the bulls can defend the $1,460 line, we can expect less volatility within the market compared to today’s moves. If they are successful, it will be easy to recapture the May-June price levels.
Investors and traders should keep their eyes peeled for any market move in favor of the bulls.
Featured image of Boxmining, chart from TradingView
