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theBlock Research Pins Stacks as a Key Player in the BTC Network

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Theblock Research Pins Stacks As A Key Player In The Btc Network

Bitcoin is widely considered to be the world’s leading cryptocurrency. However, builders can use this technology to develop powerful applications, protocols, products, and services. Several ecosystems emerged on top of Bitcoin over the years, and Stacks continues to note tremendous growth.

The Ongoing Evolution of Stacks

Many people may recall Stacks under its former name of Blockstacks. It is a smart contract layer for Bitcoin tethered to the Bitcoin blockchain through a cross-chain consensus mechanism. The hash of the Stacks state is embedded into every Bitcoin network block. More importantly, Stacks is not limited to Bitcoin’s scaling – or lack thereof – as it relies on a different approach to process transactions.

Under the Stacks hood, the network relies on two types of blocks:

  • Anchor blocks: used to tether Stacks to Bitcoin
  • Microblocks: powering applications requiring high throughput and low latency.

One of the emerging partners through Stacks is Hiro, an organization focused on building Bitcoin applications. They, too, see merit in further scaling Stacks through Hyperchains and increasing the throughput even further. Hiro proposes using trusted federated hyperchains to evolve into a trustless hyperchain solution.

Stacks Adoption Increases Rapidly

The approach by Stacks immediately gained traction since launching its smart contracts in 2021. That resulted in a Total Value Locked increase following the introduction of native-BTC swaps and support for Non-Fungible Tokens. The current Total Value Locked in Stacks hovers near $100 million, most of which resides in the StackSwap DEX and token launchpad.

Another growth factor, as outlined in the recent TheBlock research,  is the number of projects building Stacks to unlock more Bitcoin-oriented potential. The smart contract layer is leveraged by Alex, Gamma, Arkadiko, HeyLayer, Zest, Xverse, Planbetter, Block Survey, Provico, Byzantion, GoSats, and Moon. That confirms overall interest in this technology keeps rising, and more developers want to experiment with Bitcoin-capable smart contracts.

Moreover, the position of Stacks has been solidified by Trust Machines that recently a massed a warchest of $150M. The Trust Machines team wants to become the “ConsenSys of Bitcoin”, which may sound rather ambitious to onlookers. However, it aims to explore all opportunities brought to the Bitcoin ecosystem, and the initial focus will shift to the Stacks ecosystem.

Statistics-wise, the network notes a healthy uptake on smart contracts, NFTs, and other transactions. The coinciding growth of smart contract deployment and NFT events is to be expected, although there will be other use cases for these contracts in the future.

The Push Continues

Although Stacks has seen tremendous growth since its launch, there is more work to do. One focal point is introducing developer incentives. Development for and on Bitcoin will only advance when more people are interested in exploring the available opportunities. So together with GSR, OKCoin, and Digital Currency Group, the Stacks Foundation announced a $165 million incentive dubbed Bitcoin Odyssey. That fund is designed to provide financial support for applications and builders who drive Bitcoin adoption.

Another crucial catalyst to consider is how developers achieve peace of mind when building on Stacks. One of its core benefits is maintaining a design approach that doesn’t require changes to the Bitcoin protocol. That also extends to applications getting “stuck”, as they can resolve those issues quickly and seamlessly.

 

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Ethereum Uptrend Vulnerable Unless It Surges Past $1,900

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Ethereum

Ethereum extended losses below the $1,820 support against the US Dollar. ETH could decline further if it fails to start a recovery wave above the $1,900 level.

  • Ethereum started a fresh decline and traded below the $1,900 level.
  • The price is now trading below $1,880 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $1,880 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to move down if there is a clear move below the $1,800 level.

Ethereum Price Turns Red

Ethereum followed a bearish path after it settled below the $1,900 level. ETH traded below the $1,850 support zone and increased pressure on the bulls.

The bears even pushed the price below the $1,820 level, but the price stayed above the $1,800 level. A low is formed near $1,806 and the price is now consolidating losses. Ether price is now trading below $1,880 and the 100 hourly simple moving average.

An immediate resistance on the upside is near the $1,840 level. It is near the 23.6% Fib retracement level of the recent drop from the $1,955 swing high to $1,806 low.

The first major resistance is now forming near the $1,880 level and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $1,880 on the hourly chart of ETH/USD. The trend line is near the 50% Fib retracement level of the recent drop from the $1,955 swing high to $1,806 low.

Source: ETHUSD on TradingView.com

A clear move above the $1,880 resistance could even push the price above the $1,900 resistance. The next major resistance is near the $1,920 level, above which the price may perhaps move into a positive zone.

More Losses in ETH?

If ethereum fails to rise above the $1,880 resistance, it could continue to move down. An initial support on the downside is near the $1,800 zone.

The next major support is near $1,780, below which ether price might accelerate lower. In the stated case, the price may perhaps decline towards the $1,750 level. Any more losses may perhaps open the doors for a move towards the $1,650 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,800

Major Resistance Level – $1,880

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Crypto Exchanges in Ontario Have a $30K Annual Cap on Buying Altcoins

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Crypto Exchanges In Ontario Have A $30K Annual Cap On Buying Altcoins