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Where is the next 100x Alpha in the Stacks ecosystem?

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Inscriptions, Launchpad and Meme deserve special attention.

Original Title: "Exploring the Next Hundredfold Alpha 'BTC Ecology' in the Stacks Ecosystem"

Original Author: Asher, Odaily Star Daily

Stacks: Bitcoin Layer 2 Solution

Basic Information

Stacks public chain was co-founded by Muneeb Ali and Ryan Shea in 2013. It was originally named Blockstack and later renamed Hiro Systems PBC. One of the project's main features is that it was financed under SEC supervision according to Reg A, making it a blockchain project that complies with SEC regulatory standards. As of today, Stacks has completed 5 rounds of financing, with a total amount of 88 million US dollars (as shown in the figure below).

Sorry, I am unable to translate the given content as it contains HTML tags and attributes which are not translatable. Please provide me with plain text content to translate.According to official sources, Stacks will release a version called "Nakamoto" in the first quarter of 2024. The biggest highlight of this version is its transaction speed, which will increase from the current 10-30 minute block speed associated with Bitcoin L1 to 5 seconds per block.

铭文板块带动 Stacks 热度

Inscription section drives the popularity of Stacks

This wave of the inscription plate has also come to the Stacks chain. Since the launch of the first inscription project STXS on Stacks, the price of STX has risen from $1 to around $1.5, an increase of 50%.

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Source: coingecko

And, most notably, after the success of the STXS project in the inscriptions industry, STX has caused most exchanges to suspend withdrawals for the past week. Today, exchanges have gradually resumed withdrawals, but most of them have also raised withdrawal fees. The following figure shows the current situation of withdrawals from exchanges to on-chain wallets.

Withdrawal situation of exchanges

Ecological Development

Source: DefiLlama

By analyzing the on-chain data of Stacks, the ecosystem is still in its early stages with a TVL of nearly $60 million. If the product upgrade can be achieved by 2024 and catch up with the concept of BTC L2, it is very likely that several projects with a market value of over 100 million or even billions will emerge. So, what are the noteworthy sectors and corresponding leading projects in the ecosystem? Odaily Star Daily has compiled a list of the currently popular projects in the ecosystem.

Inscription Section

In the wave of the inscription craze, Stacks also has its own "local" inscription project. Although it cannot compare with the popularity of Ethereum and Solana chain inscriptions, the inscriptions issued on Stacks also have their own leading project STXS, which is the first inscription project issued on the chain and has gained official support with good popularity in Europe and America. Currently, the inscriptions issued on the chain are ranked according to the current market value as shown in the figure below. It is obvious from the figure that the development of inscriptions on this chain is still in its early stages, and even the leading project STXS has a market value of less than 7 million US dollars, with only three inscription projects with a market value of over 100,000.

Stacks Market Cap Ranking List

Although the overall market value of Stacks inscription market is relatively small, there are already places where secondary trading can be conducted (as shown in the figure below). After one version iteration, the basic experience of trading STX 20 projects on the platform can be satisfied, but there are still some criticisms.

1. When making a purchase, the Pending time is too long. Due to the current version of Stacks, the speed of block generation is synchronized with BTC, so a simple transfer may take more than 20 minutes. In addition, the platform requires 6 block confirmations after the buy-in action is recorded on the chain, which further extends the transaction time. It is estimated that completing this series of actions will take at least 2 hours.

2. Due to the low frequency of clicks on the link, Gas was not adjusted, resulting in the transaction being stuck in a Pending state. Since most people have little interaction with wallets on the Stacks chain, or have never operated them before, they do not adjust the Gas fee when making transactions, resulting in the inability to be added to the chain and causing a stuck transaction (the previous transaction is not completed, and subsequent transactions cannot be carried out). Finally, a new transaction can only be made after waiting for 256 blocks (if a Pending transaction on the Stacks chain is not packaged after 256 blocks, it will be automatically cancelled).

It is precisely for this reason that when the secondary exchange was just launched, the floor price of the leading dragon STXS of the inscription dropped from the highest $600 on the OTC market, falling to around $200 at the lowest, and currently maintaining around $300. However, compared with other public chains that have issued inscriptions, Stacks has developed a secondary exchange in just one week and iterated the second version after Christmas, so its pace is already very fast. If Stacks increases the block speed in the first quarter of next year, most of the transaction problems will be solved, and the projects in its inscription ecology may have a good increase, so it is worth paying attention to.

Source: stx 20.com

DeFi Sector

ALEX

ALEX is an open-source DeFi protocol based on the Stacks public blockchain. Its goal is to provide a complete DeFi product for the Bitcoin network. Currently, ALEX holds a position in Stacks similar to Uniswap on Ethereum.

ALEX

Currently, the mainnet version of ALEX includes functions such as Swap, lending, staking, yield farming, and Launchpad. In addition, amidst the popularity of BRC-20, ALEX has also launched a BRC-20 order book exchange.

Order Book Trading

Additionally, it is worth noting the Launchpad service on ALEX. Also a popular sector currently, ALEX has involvement in it. The latest Launchpad is a re-release of the old OG project, with a certain community foundation, and is worth paying close attention to.

Launchpad Section

ALEX is the native token of Alex Labs and serves as a reward mechanism for liquidity provision and staking on the platform. Currently, the price of ALEX is $0.375 USD, with a market capitalization of approximately $245 million USD.