Should you buy Stacks?
PLUS: Raydium Dips 22% in 24h
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In today's newsletter:
💡 Should you buy Stacks?
📣 BTC could hit $200K before the end of the year
📈 Raydium Dips 22% in 24h
Let’s dive in!
💡 Insight
Should you buy Stacks?
Stacks (STX) is a Bitcoin Layer-2 (L2) that allows smart contracts and decentralized applications to use Bitcoin as a secure base layer. Transactions are executed on Stacks and settled on Bitcoin, leveraging Bitcoin's security and capital while offering arbitrary programmability that is not possible on its scriptable settlement layer.
Stacks has knowledge of the full Bitcoin state, thanks to its Proof-of-Transfer (PoX) consensus mechanism and Clarity programming language, allowing it to read from Bitcoin at any time.
Relative to BTC and ETH benchmarks, which saw their market caps grow ~48.00% and ~28.30% QoQ, respectively – Stacks' market cap declined ~9.50% QoQ to ~$2.31 billion from ~$2.75 billion.
This drop indicates a weaker position within the broader crypto market.
Should you buy Stacks? Here’s our view:
What we like
✅ As a Bitcoin L2, Stacks is deeply integrated with Bitcoin in its market performance, outperforming BTC in bullish cycles
STX Performance (Q1 2024) ✅ The new Nakamoto upgrade strengthens Stacks’ integration with Bitcoin. This has reinvigorated user participation and transaction volumes.
✅ Key metrics such as active addresses, transactions and DEX volumes improved significantly in the last 90 days.
Red flags
❌ Underperformed BTC and ETH QoQ and YoY (weaker position within the broader crypto market).
❌ Declines in daily net stack (-21.76%), token price (-16.80%), and market cap (-9.50%)
❌ YoY Revenue performance still lags behind 2023 levels.
📣 Update
Raydium Dips 22% as Rumors Swirl on Pump.Fun Changes
Raydium's RAY token plummeted Sunday amid speculation that meme coin launchpad Pump.fun is preparing to launch its own automated market-making system.
The sharp decline follows the discovery of an apparent test version of an AMM that could redirect significant trading volume away from Raydium's platform.
📈 Signal
Stables are growing
The supply of stablecoins is a vital indicator of market confidence and functionality. As the crypto market continues to evolve, maintaining a healthy stablecoin supply will be essential for supporting liquidity, fostering innovation, and ensuring overall market stability.
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