On top of that Stax has yet to deliver all the functionalities required to support an nft trading ecosystem and it faces competition from projects and other blockchain ecosystems the fundamental and technical analysis of the project suggests that the price surge might have reached overbought conditions and may correct in the near term Ordinals development is unpredictable for now the recent focus on inscribing nfts on the Bitcoin Network peaked in the last month after Casey rodermore inscribed an ordinal on January 29th while the trend took off to an overwhelming start the minting is limited to technical users with a Bitcoin node and trading primarily takes Place through OTC channels in comparison to ethereum nft marketplaces the infrastructure for Bitcoin nft trading remains significantly underdeveloped in regards to complex activities like decentralized Trading many investors have expressed their belief that there needs to be a way to spin up marketplaces and nft minting platforms for ordinals the Bitcoin developer Community has Previously discouraged using the network for anything other than payments because it clogs the space and increases transaction fees in the Bull Run of 2020 and 2021 many ethereum users paid hundreds of dollars in fees per transaction as user activity on it exploded on the other hand bitcoin’s fees stated Optimum levels throughout the bull run but the usage and earnings of the protocol lagged behind ethereum according to a coin share report the adoption of ordinals will again be subject to the social acceptance of the method to inscribe additional data on the Bitcoin blockchain which is bound to present challenges such as Network Congestion and increased fees the report goes on to review previous failed attempts to use the Bitcoin blockchain for smart contract activity saying that similar projects of bitcoin’s past have had little impact on investors and users alike the number of ordinals inscribed on bitcoin surged significantly at the start of Fab ER the trends slowed down due to a lack of trading infrastructure with less than 10 000 nfts inscribed on most days blockchain’s native STX STX token jumped by 256 in February thanks to Hype around Bitcoin nfts and an upcoming upgrade to the project number of ordinals inscribed on bitcoin daily Source Dune it remains to be seen how the Bitcoin Community reacts to an increase in network congestion and Bitcoin fees if the ordinal’s hype grows Stax price Rises on speculation while activity is low the idea is that Stacks will make Bitcoin ordinals more accessible to users by facilitating minting processes and hosting marketplaces Stax Foundation the team managing the blockchain on February 22 announced a new upgrade to the protocol stacks 2.1 which seeks to improve the blockchain by adding evm compatibility and synthetic Bitcoin sbtc through a secure bridge to bitcoin on top of that the BTC naming service lives on the stacks Network which could Generate a lot of trading activity if the demand for BTC addresses increases in its current state a BTC Stacks address is largely detached from the Bitcoin Network meaning users cannot send and receive Bitcoin at these addresses like it’s counterpart after the two zero upgrade Stacks will enable direct sending of Stax assets to Bitcoin addresses it will enable proxy access to the Bitcoin blockchain without creating a separate Stacks address it remains to be seen if Bitcoin users find the feature attractive while the upgrade sound promising there’s still insufficient blockchain activity to justify the STX price surge only around 1000 unique active wallets Engage with d-apps on Stacks in February the most striking part of Stack’s usage data was that the nft marketplace gamma also failed to attract considerable users to its platform with less than 100 wallets trading daily on the marketplace used dapps on Stacks between January 28 and February 27th Source Gap radar gamma supports minting and sending Bitcoin ordinal nfts via stacks however many users have faced ux-related problems while using the feature as it requires a separate address in a Stax wallet that is ordinal compatible many users have mistakenly sent their nfts to wrong addresses the wallet issue has also restricted the Trading of Bitcoin nfts gamma nft Marketplace stats Source dap radar developers in the Stax ecosystem like the experts team are working on a wallet to bring user-friendly ordinal support there’s also an experiment with atomic swaps between Bitcoin nfts and STX in the works the aim is to develop this functionality Into a complete Marketplace however other ecosystems are also looking to bank on this trend for instance ordinex is developing an ordinals trading platform which will be accessible for ethereum users through metamask some ethereum native projects like on chain birds and sapi seals have also inscribed the nfts on bitcoin and Enabled trading on openc however the trading activity of these collections remains average with little hype besides Stacks many other ecosystems are trying to bank on the opportunity by facilitating Bitcoin nfts while Stacks enjoys a technical advantage over others ethereum has a loyal user base and adequate liquidity to outperform Stax ecosystem if a Feasible solution emerges moreover in the end it will depend on the response and demand of these nfts from the Bitcoin Community which may not support Euphoria around it STX USD reaches key resistances zones the STX token dilutes at the rate of 2.5 annually the inflation will reduce after the Bitcoin having which is expected to occur in April 2024 the rate of Supply increase of STX is low compared to other layer -1 blockchains like Solana and cordana which is encouraging however the Network’s total fees or token economics do not balance the inflation which needs to change soon Technically the STX USD pair is near the top of its two-year trading range at one dollar O2 which is a potential yellow flag for buyers if Bulls are able to overcome this level STX can possibly take a shot at the all-time highs near three dollars oh however given that network activity Doesn’t correlate to the price rise as of yet there’s a chance of a pullback towards zero dollars 68 and 0.24.ex USD daily price chart Source trading view similarly the STX BTC pair is also near its all-time range of zero 0004350 b t c which raises the Possibility of a correction once those levels are tagged the downside targets of STX are at zero 0002744 b t c and 0.0001233 b t c STX USD weekly price chart s tradingview Bitcoin nfts have a lot of potential but it is still unclear if the Bitcoin Community which is usually Against speculation and activities that clog the network will allow the trend to prosper currently the most crucial aspect of nft trading an easily accessible Marketplace and wallet is still missing from the ordinal’s ecosystem as a Bitcoin side chain Stacks enjoys technical advantages with Bitcoin integration and it has a slight Advantage over other blockchains in providing the tools to support an ordinal’s craze however the applications to support ordinals are still in development meanwhile Stacks faces competition from other more liquid ecosystems which could develop more feasible solutions to integrate Bitcoin nfts on their chain the views thoughts and opinions Expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of quintelegraph thanks for watching please subscribe my channel to get more cryptocurrency news and updates Stacks (STX) surges as Bitcoin NFT hype grows, but its blockchain activity raises concern #crypto #cryptocurrency #bitcoin #blockchain #litecoin #etherum #dogecoin #NFT #DeFi #ripple #altcoin #metaverse FAIR-USE COPYRIGHT DISCLAIMER: Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for “fair use” for purposes such as criticism, commenting, news reporting, teaching, scholarship, and research.Fair use is a use permitted by copyright statute that might otherwise be infringing.Non-profit, educational or personal use tips the balance in favor of fair use.
Stacks is one of the first blockchains to enable a way for minting Bitcoin (BTC) Ordinals, which puts it in an excellent position to benefit from the hype.However, Ordinals have invoked an issue from the past where Bitcoin maximalist ideologies will be tested if the NFTs lead to network congestion.On top of that, Stacks has yet to deliver all the functionalities required to support an NFT trading ecosystem and it faces competition from projects in other blockchain ecosystems.The fundamental and technical analysis of the project suggests that the price surge might have reached overbought conditions and may correct in the near term.Ordinals development is unpredictable for now The recent focus on inscribing NFTs on the Bitcoin network peaked in the last month after Casey Rodarmor inscribed an Ordinal on Jan.
29.While the trend took off to an overwhelming start, the minting is limited to technical users with a Bitcoin node and trading primarily takes place through OTC channels.In comparison to Ethereum NFT marketplaces, the infrastructure for Bitcoin NFT trading remains significantly underdeveloped in regards to complex activities like decentralized trading.Many investors have expressed their belief that there needs to be a way to spin up marketplaces and NFT minting platforms for Ordinals.
The Bitcoin developer community has previously discouraged using the network for anything other than payments because it clogs the space and increases transaction fees.In the bull run of 2020 and 2021, many Ethereum users paid hundreds of dollars in fees per transaction as user activity on it exploded.
On the other hand, Bitcoin’s fees stayed at optimum levels throughout the bull run, but the usage and earnings of the protocol lagged behind Ethereum.According to a CoinShare report, the adoption of Ordinals will again be subject to the social acceptance of the method to inscribe additional data on the Bitcoin blockchain, which is bound to present challenges such as network congestion and increased fees.The report goes on to review previous failed attempts to use the Bitcoin blockchain for smart contract activity, saying that “similar projects of Bitcoin’s past have had little impact on investors and users alike.” The number of Ordinals inscribed on Bitcoin surged significantly at the start of February as the instrument exploded.However, the trend slowed down due to a lack of trading infrastructure, with less than 10,000 NFTs inscribed on most days.Stack blockchain’s native STX (STX) token jumped by 256% in February, thanks to hype around Bitcoin NFTs and an upcoming upgrade to the project.Number of ordinals inscribed on Bitcoin daily.
Source: Dune It remains to be seen how the Bitcoin community reacts to an increase in network congestion and Bitcoin fees if the Ordinals hype grows.Stacks price rises on speculation, while activity is low The idea is that Stacks will make Bitcoin Ordinals more accessible to users by facilitating minting processes and hosting marketplaces.Stacks Foundation, the team managing the blockchain, on Feb.22 announced a new upgrade to the protocol, Stacks 2.1, which seeks to improve the blockchain by adding EVM compatibility and synthetic Bitcoin (sBTC) through a secure bridge to Bitcoin.On top of that, the .BTC naming service lives on the Stacks network, which could generate a lot of trading activity if the demand for .BTC addresses increases.In its current state, a .BTC Stacks address is largely detached from the Bitcoin network.
Meaning, users cannot send and receive Bitcoin at these addresses like its .ETH counterpart.After the 2.0 upgrade, Stacks will enable direct sending of Stacks assets to Bitcoin addresses.
It will enable proxy access to the Bitcoin blockchain without creating a separate Stacks address.It remains to be seen if Bitcoin users find the feature attractive.While the upgrades s… source.
