STX, the native token of the Bitcoin layer-2 project Stacks, gained nearly 10 percent in 24 hours and 14 percent over the week. The token has surged more than 50 percent over four weeks, significantly outperforming Bitcoin, Ethereum and XRP.
The outperformance reflects investor interest in Stacks' non-custodial Bitcoin staking framework. Unlike traditional Bitcoin staking setups that require wrapping assets into synthetic tokens like wBTC or bridging funds across chains, Stacks allows Bitcoin holders to stake BTC directly on the main blockchain and earn yield while maintaining full control of their private keys.
Stacks uses a bonding mechanism where participants lock up assets to secure the network. The upcoming Bonding Period 3, scheduled for November, requires STX holders to lock a specific ratio of STX alongside their BTC—approximately 5 percent of the total value of Bitcoin being staked.
This required lock-up creates a supply squeeze. As more Bitcoin enters Stacks for staking, more STX gets systematically removed from the active circulating supply. By directly connecting Bitcoin liquidity inflows to STX scarcity, the protocol's architecture tightens demand-supply dynamics in favor of price appreciation.
Bonding Period 3 follows Periods 1 and 2, which focused on safely transitioning signers and bootstrapping initial network liquidity.
Other altcoins also posted gains, with BDX, REDNER and PYTH each adding 6 percent over 24 hours, signaling a broader shift of liquidity toward smaller-cap assets.
The broader crypto market remains anchored to macroeconomic data. Investors are bracing for Wednesday's U.S. Consumer Price Index report, which influences Federal Reserve rate decisions. Ether trades within its consolidation range. A break above the upper end could push it toward the recent $2,800 high. A failure to hold dual support at $2,400—the lower end of consolidation and the bullish channel—would signal an end to the rally from July lows.
