STX Surprises Everyone with a Pump: Investigating the Reasons Behind the Rise

Ticker: STX

Category: Platform, Defi, Smart Contract

Market capitalization: $845,471,747(52nd place)

Circulating Supply: 75%

STX's recent pump of approximately 87% in the last 24 hours has caught many off guard. But what has caused this sudden rise in the token's value? I did some digging to find out.

First, let's take a quick look at what STX is. Stacks Coin (STX) is a token that is used for earning Bitcoin through a unique staking process. Investors can earn STX by staking Bitcoin, and then earn Bitcoin by staking STX.

So what are the factors behind STX's recent surge in value? Here are three potential reasons:

    1. SEC Approval: STX is the first cryptocurrency to receive approval from the U.S. Securities and Exchange Commission (SEC) as a non-securities coin. While many investors are unsure of which altcoins will be impacted by SEC regulations, STX is seen as a relatively safe option. This has led to increased investment in the token.

    2. Correlation with Bitcoin: Since STX is used to earn Bitcoin, the token's value is closely tied to that of Bitcoin. Despite Bitcoin's recent rebound, STX had not moved as much as Bitcoin until now. However, as Bitcoin's value continues to rise, investors are looking to STX as a way to earn more Bitcoin. This has led to increased demand for STX.

    3. Ecosystem Potential: Unlike other platforms such as Ethereum and Solana, STX aims to expand the Bitcoin ecosystem with smart contracts based on Bitcoin. The token has seen success as an ecosystem and investors are hoping for more positive results in the future.

    As always, it's important to check the coin distribution. While there is no information about the Vesting (lock-up release schedule), the fact that the current distribution volume is 75% suggests that there is no concern about dumping lock-up releases. While STX's sudden surge may have surprised many, it's clear that the token's unique staking process and potential as a platform have caught the attention of investors.

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Binance Under SEC Attack: The Impact on the Crypto Market

The value of Binance's exchange token, BNB, has experienced a 10% decrease following the news.

    The recent announcement that Paxos, a stablecoin issuer, has stopped issuing Binance Stable Coin (BUSD) has caused a major impact on the cryptocurrency market. Binance, one of the largest cryptocurrency exchanges in the world, was hit the hardest. BUSD was one of the largest stablecoins used on Binance, and its discontinuation has led to a decrease in Binance's market share, as users have started to move their assets to other exchanges.

The Binance exodus has begun

    The disappearance of BUSD has also raised concerns about the risk of liquidation for Defi protocols that operate on the Binance Smart Chain (BSC) network. Defi protocols allow loans with certain cryptocurrencies as collateral, and if the value of the collateral falls to a certain risk level, the algorithm can immediately liquidate it. This could lead to a chain reaction of liquidation in the BSC network, affecting not only Binance-related coins, but also other cryptocurrencies in the Defi ecosystem.

👉 You can view BNB chain based coins here.

👉 You can view coins that launched on Binance here.

Despite the adverse news, Defi coins have experienced a surge in value.

    However, the situation is not all negative. The recent developments are likely to increase the market capitalization of decentralized exchanges (DEX) and Defi cryptocurrencies. Decentralized exchanges, which are not operated by any central authority, are not subject to legal regulation, and as a result, they have become a more attractive option for users who are nervous about the increased regulation of centralized exchanges. Additionally, the recent shift in focus towards Defi staking, where users can receive coin interest, is likely to increase the popularity of Defi staking as a safe and secure way to invest in cryptocurrencies.

👉 You can view DEX coins here. 

👉 You can view Defi coins here.

    In conclusion, the disappearance of BUSD and the recent events involving Binance and the SEC are significant developments in the cryptocurrency market. While there are risks and uncertainties, the market will likely stabilize over time. In the meantime, it is recommended to be cautious about investing in BSC-based Defi coins or coins related to Binance, and to consider the risks involved.

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