Stacks (STX) has been in the spotlight lately for trying something most crypto projects wouldn’t dare, bringing smart contracts and DeFi to Bitcoin without changing Bitcoin itself. Sounds wild. But Stacks is doing it by building on top of Bitcoin, not inside it.
Here’s a breakdown of what Stacks is, what’s new, how it’s doing in DeFi, and what people are saying about it.
What is Stacks?
Stacks is a layer-2 blockchain. That means it runs on top of Bitcoin, kind of like an extra layer of paint that adds color without messing with the wall itself.
Using a special system called Proof of Transfer (PoX), Stacks links everything back to Bitcoin’s base layer. That gives it solid security while still allowing things like smart contracts, NFTs, and DeFi to exist in Bitcoin’s world.
The STX token powers this whole system. You can use it to pay for gas, lock it to earn Bitcoin, or interact with apps built on Stacks.
What’s New: Nakamoto & sBTC
The Nakamoto upgrade (October 2024) was a big one. It:
- Made block times faster
- Gave full Bitcoin finality
- Fixed miner extractable value (MEV) issues
This basically made everything quicker and safer.
Then came sBTC in December, a Bitcoin-backed token that lets you move BTC around without trusting anyone. It’s like having a Bitcoin passport that lets you enter the DeFi zone.
Stacks is now trying to become the #1 Bitcoin layer-2 by total BTC held. And they’re not playing around, sBTC withdrawals to Bitcoin mainnet are already happening.
How’s the DeFi Scene?
As of April 25, 2025, according to defillama, the Total Value Locked (TVL) in Stacks DeFi is 101 million USDT. A bit low but the bigger picture looks stronger.
Highlights:
- Liquid stacking is unlocking more STX for use
- Stablecoin market cap grew 400% in Q1 to hit 7M USDT
- Ranked #3 for stablecoin growth across all chains
Top DeFi protocols:
TVL hit an ATH of 290M USDT back in April 2024, dropped for a bit, but is now climbing back.
Onchain Activity: Slower, but Turning Up Again
Let’s talk numbers. According to Messari:
- Daily active addresses dropped 60% in 2024 (Q1 to Q3)
- Transactions down ~79% over the same period
- But smart contracts deployed actually went up
- Daily miners fell, but DeFi activity is rising again, especially after sBTC
So yeah, activity dipped in 2024, but signs of recovery are there, especially with newer apps and more STX being used in DeFi.
Mindshare Mixed, but Mostly Positive
Stacks has been grabbing attention. Some recent wins:
- Grayscale launched a STX Trust
- BitGo added sBTC
- Exchanges like Binance and OKX support stacking STX
Developer activity is strong too, Stacks was 7th fastest growing in 2024, aiming for top 5 this year.
Community reactions:
- Some love the regulatory status (it’s SEC-qualified)
- Some point to massive user growth
- Others say competition is heating up, especially from other Bitcoin L2s
Still, most agree: Stacks is moving, and the narrative is bullish, especially now that Bitcoin DeFi is a thing.
Quick Stats (April 2025)
| Metric | Value | Trend |
| TVL (USDT) | 100 million | Recovering |
| Stablecoin Market Cap | 7+ million | ↑ 400% in Q1 2025 |
| Daily Active Addresses | ~1,974 (Q3 2024) | ↓ from Q1 but may be rising |
| Daily Transactions | ~7,873 (Q3 2024) | ↓ 78% from Q1 |
Final Thoughts
Stacks isn’t trying to compete with Ethereum or Solana. It’s trying to wake up Bitcoin’s 1T USDT in capital and give it tools it never had, smart contracts, NFTs, DeFi. With Nakamoto and sBTC, it finally has the tech to back that goal.
Sure, onchain activity had a slump, but the narrative, support, and developer energy are all heading in the right direction. Whether STX becomes the Bitcoin L2 remains to be seen, but it’s definitely in the race.
💡 This is not financial advice. Always do your own research before investing. This article was written for educational purposes and reflects personal analysis.Trade STX and other trending tokens on Millionero Exchange. Learn more at blog.millionero.com.