Stacks' STX, a Bitcoin layer-2 token, has surged by 50% in four weeks

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While major cryptocurrencies remain choppy, STX, the native token of the Bitcoin layer-2 project Stacks, is rallying. The cryptocurrency has surged nearly 10% in 24 hours, 14% over the past week and more than 50% in four weeks, outperforming bitcoin BTC$83,696.96, ether ETH$2,509.90, XRP (XRP) and other cryptocurrencies.

The outperformance likely reflects investor interest in Stacks’ non-custodial bitcoin staking architecture. This framework lets BTC holders stake and earn yield directly on the main Bitcoin blockchain while retaining strict control of their private keys. In contrast, traditional frameworks require users to wrap their assets into synthetic tokens (like wBTC) or move funds over cross-chain bridges to earn additional yield.

Stacks’ framework relies on a mechanism called "bonding," which requires participants to lock up assets to secure the network. The "Bonding Period 3,” due in November, requires participants holding native STX to lock a specific ratio of STX alongside their BTC — equivalent to roughly 5% of the total value of their BTC — to successfully secure protocol stacking capacity.

This creates a positive feedback loop for STX: As more BTC moves into the Stacks ecosystem, a larger portion of STX is systematically locked up and removed from the active market. By tying bitcoin liquidity directly to STX scarcity, the architecture skews demand-supply dynamics heavily in favor of long-term price appreciation.

Period 3 follows Periods 1 and 2, which served as preparatory phases to safely transition signers and bootstrap initial liquidity.

STX is not the only coin to have surged over 24 hours. BDX, REDNER, and PYTH are other major gainers, adding 6% each. It’s a sign of liquidity increasingly pivoting to coins other than the major cryptocurrencies.

Still, the broader context remains tightly bound to macroeconomic indicators. Analysts are getting ready for Wednesday’s U.S. Consumer Price Index (CPI) report, which could heavily influence expectations for upcoming Federal Reserve interest-rate decisions. Stay alert!

Read more: For analysis of today's activity in altcoins and derivatives, see Crypto Markets Today . For a comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead."

The chart shows ether’s daily price swings in candlestick format.

The second-largest crypto by market value has fallen back into its established yellow consolidation rectangle. It is currently clinging tightly to that range.

If prices break past the upper end of the consolidation, the market may revisit the recent high of $2,800. If the dual support of $2,400 — the lower end of the consolidation and the bullish channel — gives way, then it would mean an end to the rally from the July lows.