STX Token of Bitcoin Layer 2 Protocol Stacks Rises with Bitgo Integration Expected to Enhance Institutional Adoption

STX, the native token of the Bitcoin layer-2 protocol Stacks, has surged 56% in seven days, making it the week’s top performer among the 100 largest cryptocurrencies amid growing institutional interest. The token reached a two-month high of 92 cents on Friday, gaining over 21% in the past 24 hours and becoming the day’s largest advancer, according to CoinDesk data.

Stacks is the leading layer 2 solution for executing smart contracts and decentralized applications on the Bitcoin blockchain. Recently, BitGo, a digital asset custody provider and supporter of the wrapped bitcoin (WBTC) token, announced it would allow its customers to explore yield-generating opportunities on Stacks by integrating sBTC, a synthetic derivative representing bitcoin (BTC) in a 1:1 ratio on the Stacks blockchain.

“SBTC opens the door to programmable, decentralized financial products without compromising Bitcoin’s core principles — and we’re just getting started,” said Abishek Singh, a product manager at BitGo. “With over $3 trillion in processed transactions and more than $48 billion in staked assets, BitGo is well positioned to assist institutions in leveraging this new era of Bitcoin utility.”

STX has multiple roles within the Stacks ecosystem, including enabling connections between the parent blockchain and Bitcoin, facilitating smart contract creation, and supporting network governance. It is also utilized for transaction fees and plays a crucial role in the proof-of-transfer consensus mechanism, allowing holders to earn BTC by locking their STX. The sBTC token enables holders to engage in Stacks’ DeFi ecosystem while maintaining a price peg to their underlying Bitcoin.

The sBTC withdrawal facility, expected to be implemented on April 30, will enable institutions to move seamlessly between BTC and sBTC, paving the way for new applications that leverage both Stacks’ smart contract capabilities and Bitcoin’s security.

**Ecosystem Liquidity Improving**
Liquidity within the Stacks-based decentralized finance ecosystem is on the rise, as announced on social media early Friday. The protocol noted an over 400% increase in stablecoin supply during the first quarter, positioning it as the third-largest behind Morph and Cronos. The total stablecoin supply in the ecosystem reached nearly $7 million, up from around $1 million in early January, according to data from DefiLlama.