Billionaire Tim Draper’s Endorsement Skyrockets Stacks Token by 25%
Stacks (STX), the native token of the Bitcoin layer 2 solution Stacks Network, surged by 25% for the day on Wednesday following positive remarks from renowned investor Tim Draper.
The boost in the token’s price came as Draper expressed his excitement about Stacks in a recent interview on the popular YouTube channel CoinBureau, citing his interest in projects that aim to bring “important applications” to Bitcoin.
“I think that’s a really interesting trend, and we’re thinking it’s going to go the way Microsoft did,” Draper said about the efforts to bring more decentralized applications (dApps) to Bitcoin.
Stacks is a layer 2 network specifically designed to bring smart contracts – traditionally used on platforms like Ethereum and Solana – to Bitcoin.
Unlike other Bitcoin layer 2 networks and sidechains such as Lightning and Liquid, the Stacks Network has its own native token, a move that has attracted criticism from some Bitcoin maximalists.
Tim Draper, a well-known American venture capitalist, has previously predicted that Bitcoin would reach $250,000 by 2025, and his positive sentiments toward Stacks thus appear to align with his broader outlook on the potential of Bitcoin.
Stacks has seen a notable rise in prominence throughout the year, particularly with the emergence of Ordinals, a form of NFTs on the Bitcoin blockchain.
The total capital locked on the Stacks platform has seen a substantial increase, rising from just $7 million at the beginning of 2023 to over $57 million as of this writing, per data from tracking site DefiLlama.
Meanwhile, the price of the network’s native STX token has also risen substantially.
Starting the year at $0.21, Stacks is currently trading at $1.49, reaching its highest level since March 2022,
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