STX Token (STX) Soars 56% to Become the Top-Performing Cryptocurrency This Week

The Stacks token (STX) has delivered impressive returns to investors this week, surging 56% over seven days to become the best-performing cryptocurrency

The Stacks token (STX) has had an outstanding week, surging 56% over seven days to become the best-performing cryptocurrency among the top 100 by market capitalization. The token reached a two-month high of $0.92 on Friday after posting a 21% gain in just 24 hours.

Stacks is a layer-2 solution built for Bitcoin, enabling smart contracts and decentralized applications to run on the world’s largest blockchain. The recent price action comes amid growing institutional interest in the ecosystem.

On Tuesday, BitGo announced it would integrate sBTC, a synthetic derivative that represents bitcoin in a 1:1 ratio on the Stacks blockchain. This move allows BitGo customers to explore new yield-generating opportunities within the Stacks ecosystem.

BitGo, which backs the wrapped bitcoin (WBTC) token, brings significant industry weight to this partnership. The firm has processed over $3 trillion in transactions and currently manages more than $48 billion in staked assets.

“SBTC opens the door to programmable, decentralized financial products without compromising Bitcoin’s core principles — and we’re just getting started,” added Abishek Singh, a product manager at BitGo.

The Expanding Role of STX

The native STX token serves multiple purposes within the Stacks ecosystem. It facilitates the connection between Stacks and the Bitcoin blockchain while enabling smart contract creation and network governance.

Users also need STX to pay transaction fees on the network. Perhaps most attractively for investors, STX plays a key role in the proof-of-transfer consensus mechanism that allows holders to earn BTC rewards by staking their STX tokens.

The synthetic sBTC token allows holders to participate in the growing Stacks DeFi ecosystem while maintaining a price peg to bitcoin. This creates a bridge between Bitcoin’s store of value properties and DeFi functionality.

A new withdrawal facility for sBTC is expected to launch on April 30. This feature will allow institutions to move freely between BTC and sBTC, potentially catalyzing the development of new applications that combine Stacks’ programmability with Bitcoin’s security.

DeFi Growth Accelerates

The Stacks protocol recently highlighted the rapid growth of its DeFi ecosystem in a social media post. According to the announcement, stablecoin supply in the Stacks ecosystem increased by more than 400% during the first quarter of 2025.

This growth rate puts Stacks as the third-largest gainer in stablecoin supply for the quarter, trailing only the Morph and Cronos ecosystems. Data from DefiLlama shows that total stablecoin supply in the Stacks ecosystem reached nearly $7 million, up from approximately $1 million in early January.

This expansion in liquidity suggests increasing user activity and growing confidence in the Stacks ecosystem. Higher liquidity typically supports more complex DeFi applications and attracts additional participants.

Technical Picture Brightens

From a chart perspective, STX has completed a bullish breakout from a descending wedge pattern that began forming in February. Technical analysts view this pattern as a potential reversal signal after extended downtrends.

The breakout was confirmed on April 21 and likely represents the end of a five-wave corrective decline following STX’s peak at $3.01 in December 2024. This technical development suggests the potential beginning of a new uptrend.

Both the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) technical indicators displayed bullish divergences before the recent price surge. These indicators continue to trend upward, supporting the case for further gains.

The next major resistance for STX sits at the psychologically important $1 level. If the token breaks above this threshold, the next target would be around $1.38, which corresponds to the 0.382 Fibonacci retracement level.

However, shorter timeframe analysis suggests STX may experience a local top before reaching $1. The six-hour chart shows developing bearish divergences in momentum indicators, hinting at a potential short-term pullback.

Traders anticipate that any correction would likely find support near the $0.78-$0.80 range, a previous resistance zone that could now function as support. From this level, STX could potentially resume its upward movement.

The upcoming implementation of the sBTC withdrawal facility on April 30 represents a near-term catalyst that could influence price action. Market participants will be watching closely to see if this development drives additional demand for STX.

With its combination of strong technical picture and fundamental developments, STX has established itself as one of the standout performers in the cryptocurrency market this week. The token’s ability to bridge Bitcoin with DeFi functionality continues to draw interest from both individual and institutional investors.

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