Author: @JellyZhouishere, @GryphsisAcademy

TL;DR

The long-term value of Stacks depends on the growth of the Stacks ecosystem and the related demand for Clarity smart contracts. Currently, the construction of the Stacks ecosystem is relatively slow, and the absolute number and growth of developers and actual users are slow.

The main price drivers of Stacks are: halving narrative, the only circulating token project in BTC’s second layer, compliance narrative, upgrades, and the emotional premium brought by the popularity of the Ordinals ecosystem.

The Nakamoto upgrade is the next major upgrade of Stacks, which is expected to be launched in the first quarter of 2024 and will be a potential important catalyst for driving $STX price changes. For Stacks, the Nakamoto upgrade means achieving shared network security with BTC, launching sBTC, supporting BTC atomic swaps, fast block generation, and supporting multiple development languages.