Stacks up 215% in 3 months, Tim Draper bullish

2023-12-22 17:11:06

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STACKS, the native token of Stacks Network, rose 27% on Dec. 20, fueled by positive comments from renowned investor Tim Draper

Draper, who has a history of making successful crypto investments, expressed his enthusiasm for Stacks in an interview with CoinBureau

He believes that Stacks has the potential to reshape the way that smart contracts are deployed and used on the Bitcoin (BTC) blockchain.

By default, Bitcoin is a transactional layer and doesn’t support smart contracts. Stacks aim to tap into Bitcoin’s decentralization and security by acting as a layer-2 network from where protocols can quickly deploy smart contracts. By “pegging-in”, it is possible to transfer STACKS between Bitcoin and Stacks without modifying the legacy blockchain.

Draper’s comments come when Stacks is gaining traction, rising in tandem with the broader crypto network. Bitcoin remains firm, and bulls are targeting $50,000 and even all-time highs recorded in late November 2021 at $69,000.

In recent months, there has been a notable uptick in capital flows into Stacks. Its total value locked (TVL) is up from $7 million recorded in early 2023 to over $56 million when writing, according to DeFiLlama data

This growth is partly attributed to the emergence of Bitcoin inion projects like Ordinals. Due to the rapid rise of some BTC-20 tokens, the focus has been on projects tapping into Bitcoin, lifting Stacks.

Draper’s bullish sentiment towards Stacks aligns with his broader outlook on Bitcoin

The venture capitalist is bullish on Bitcoin and expects the coin to reach $250,000 by 2025

The crypto community expects the Securities and Exchange Commission (SEC) to approve several spot Bitcoin ETFs. This move could lift prices, further pumping STACKS.

Trading at around $1.33 on Dec. 22, STACKS is up 215% from September 2023 lows. The uptrend remains, and bulls might extend gains, lifting the token to 2021 highs of around $3.2.

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