Hedge Fund Predicts Stacks (STX) As Best Altcoin In Upcoming Months
05 Dezember 2023 - 9:15AM
NEWSBTC
North Rock Digital, a player in the digital assets hedge fund
arena, recently made a bold prediction regarding the altcoin Stacks
(STX). In a statement released on X, the fund highlighted its
investment strategy and reasoning for STX being the best altcoin to
long at the moment. “When looking for long ideas, we target those
with strong fundamentals, supportive tokenomics, and significant
upcoming catalysts. STX stands out with the most compelling
catalyst path over the next few months and the greatest chance to
rerate,” the fund stated. In-Depth Analysis Of Stacks’ Prospects
North Rock Digital’s full thesis, published on Medium, delves into
the details underpinning their positive outlook on STX. The thesis
asserts, “Key developments have brought our initial STX thesis into
further focus […] demand for Bitcoin block-space has solidified,
increasing the demand for the product STX is building.” Related
Reading: Stacks (STX) Fired Up Along With Top Coins With 26% Rally
Significant is the Nakamoto upgrade, scheduled before the Bitcoin
halving in April. This upgrade is seen as a pivotal moment for STX,
promising dramatic improvements in speed and efficiency, including
5-second block times and support for sBTC, a secure version of
wrapped Bitcoin. This development, according to North Rock Digital,
positions STX closer to being a true Bitcoin L2. The hedge fund
also points out the broader context within the Bitcoin ecosystem
that favors STX. The rising demand for Bitcoin’s block space,
notably with a 50x spike in network average gas fees this year,
alongside the development of Ordinals, indicates a growing interest
in utilizing Bitcoin beyond just a store of value. These
developments, coupled with the anticipated US spot Bitcoin ETF
approval, are expected to boost the demand for STX’s offerings.
Furthermore, STX has been somewhat overlooked recently, providing
what North Rock Digital sees as a unique investment opportunity.
“Despite these positive developments, attention on STX has declined
[…] leaving us with a unique opportunity,” the thesis
elaborates. Notably, the Stacks developer team’s progress
towards the Nakamoto upgrade is on track, with the Mockamoto
milestone already completed. The fund also emphasizes Stacks’
international partnerships and upcoming initiatives. These include
the launch of a marketing campaign in Asia and the roll-out of the
second Nakamoto testnet by January. “Stacks is expanding their
footprint globally… They will run a marketing campaign to raise
awareness for Bitcoin L2s in the first quarter of ’24 with a focus
in South Korea, Singapore, Hong Kong and Dubai,” the fund explains.
Related Reading: Stacks (STX) Rockets 26% Higher In A Single Week:
The Factors At Play “Stacks is expanding their footprint globally…
They will run a marketing campaign to raise awareness for Bitcoin
L2s in the first quarter of ’24 with a focus in South Korea,
Singapore, Hong Kong and Dubai,” the hedge fund explained.
Moreover, the introduction of new Bitcoin L1 tools like BitVM is
also seen as a significant step towards realizing a true Bitcoin L2
vision without needing changes to Bitcoin L1. STX Valuation In
terms of valuation, STX is currently seen as undervalued,
especially when compared to other L1/L2 ecosystems. With the
Nakamoto upgrade and the proximity to the next BTC halving, STX is
expected to narrow its valuation discount relative to other assets,
North Rock Digital claims. Post-Nakamoto, STX is anticipated to
enable a range of applications, including a performant
BTC-denominated NFT marketplace and traditional DeFi applications.
The potential for these applications, combined with the strong
BTC-centric community of STX, presents a compelling case for its
future growth. At press time, STX stood near its yearly high and
was trading at $1.15. Featured image from Shutterstock, chart from
TradingView.com
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