In the midst of a challenging market environment, Stacks (STX) has continued to experience a downward trend, pressured by bearish forces. CoinGecko data reveals that the token has plummeted nearly 23% since last week, exacerbated by a broader market correction. Major cryptocurrencies like Bitcoin and Ethereum have also declined by 10% in the past week, contributing to a 2% overall market downturn.
Despite these hurdles, recent developments could potentially slow the token’s decline. Stacks is emerging as a leading layer-2 solution for Bitcoin, drawing interest from both institutional and retail investors. The first phase of the Nakamoto upgrade, which introduced the role of ‘Signers’—validators in their proprietary terminology—has significantly expanded since its rollout on April 22nd. According to an August 1st blog post, 39 blockchain institutions have joined Stacks as signers.
Notably, Xverse, a Bitcoin wallet provider engaging with the BRC-20 standard, is among those onboard. This major alliance is expected to expand Stacks’s user base, positioning it advantageously as interest in layer-2 solutions for Bitcoin grows.
The recent announcement of a partnership between Stacks and Aptos at the Bitcoin Builders Conference has also generated buzz. Aptos will become a signer, raising the total count to 40, and the two organizations will form a working group to enhance collaboration.
Since the signer onboarding began, approximately 118 BTC, worth over $7 million at the current Bitcoin price of $60.7k, has been distributed among various institutions.
Currently, STX remains under bearish control as the market continues to favor selling. However, bulls have mounted a robust defense at the $1.460 price level, offering some support for potential upward movement. Yet, the possibility of a bullish breakout remains uncertain due to the prevailing bearish sentiment in the major cryptocurrencies over the short to medium term.
Should the bulls successfully defend the $1.460 line, market volatility could decrease, making it easier to regain the price levels seen in May and June. Investors and traders should remain vigilant for any market movements that could signal a shift in favor of the bulls.
 battles market pressures, down 23%, yet draws significant interest as a leading Bitcoin layer-2 solution. Key partnerships may boost its prospects.){kind=link}