RJ Fulton, analyst at consulting giant Motley Fool, pointed to a little-known altcoin project for its July gains. Unlocking the full potential of Bitcoin, this cryptocurrency could be the next uncut diamond, according to the analyst.
“This altcoin is the next uncut diamond”
Predicting future altcoin projects involves evaluating key value factors such as the token economy and security. In addition, it is important that elections fill the technological gaps in the market. For example, Bitcoin and Ethereum are emerging as long-term investment vehicles with store of value or smart contract features. Analyst RJ Fulton says Stacks (STX) is a rough diamond that will stand out for its own characteristics.
In the rest of the article, you can find the catalysts that analyst RJ Fulton has listed for the selection of STX.
New utility
The lack of smart contract functionality in Bitcoin has led to new use cases such as DeFi and NFTs shifting to other blockchains. But this is changing with Stacks (STX). Layer-2 solution Stacks takes a unique approach by providing smart contracts on the Bitcoin network. This feature allows developers to connect various platforms and use cases with Bitcoin.
Stacks isn’t just expanding Bitcoin’s use cases beyond a store of value. It also helps address scalability issues that can plague the Bitcoin network. The Altcoin project does this by processing transactions in packets and then adding them to the Bitcoin network in a single transaction. This is not only more cost effective, but also increases processing capacity. STC had previously consolidated its capabilities with a short-lived rally in January.
Functionality and use cases of STX
Stacks’ value proposition goes beyond smart contract functionality and scaling features. With its limited supply, Stacks echoes the scarcity that made Bitcoin the world’s most valuable cryptocurrency.
About 76% of the Stacks supply is currently in circulation. It uses a monetary policy similar to Bitcoin in STX. In this policy, it is halving that halves STX production every four years. This disinflationary method will likely benefit the price of Stacks as supply becomes less diluted over time, especially if demand for STX increases.
Emerging Bitcoin use cases
Bitcoin has long been perceived only as a store of value. But this is now evolving. Earlier this year, a technology breakthrough occurred that allowed the creation of Bitcoin-based NFTs. Known as Ordinals, this protocol allows users to convert arbitrary data such as images, video, audio or text into individual satoshis, the smallest unit of a Bitcoin. Demand for Ordinals soon increased. Thus making Bitcoin one of the best NFT platforms of 2023. This was a feat unimaginable just a year ago.
Ordinals caused an excessive amount of traffic and network congestion as transactions occur directly on Bitcoin. As a result, fares skyrocketed and speeds took a hit. A more cost-effective and efficient alternative would be to use Stacks to print NFTs. While doing this, wages can be kept under control. At the same time, it remains stable at speeds. Users can continue to benefit from Bitcoin-based NFTs as transactions will eventually reach finality in a Bitcoin block.
The future of Stacks
Highlighted by the demand for Ordinals, Stacks takes Bitcoin beyond being a store of value. As this momentum continues, Stacks has emerged as a key player in tapping into Bitcoin’s hidden capital. With the goal of reaching 3% of Bitcoin’s market cap, Stacks has big goals. But that takes a lot of effort. To reach 3% of Bitcoin market cap, Stacks will need to increase more than 18x. If that happens, it will lead to more than $11 per unit, a long way from the current $0.69.
Despite the remaining significant developments, Stacks is well on its way to revolutionizing the world’s most valuable cryptocurrency. The journey will likely take time, but in the long run, Stacks could prove to be the rough diamond investors are looking for. cryptocoin.com As we have conveyed, its recent achievements confirm that it is taking firm steps forward on this path.
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