STX Surges 40% as BitGo Integration Sparks Institutional Frenzy

Stacks (STX) rockets to the top of crypto gainers this week after BitGo’s custody announcement - because nothing screams ’institutional adoption’ like paying a 1.5% custody fee to store your ’decentralized’ assets.

The Bitcoin L2’s native token defied the market slump with a blistering 40% rally, fueled by speculation that TradFi players might finally use smart contracts (as long as they come with a Goldman Sachs-approved custodian).

Key drivers:

- BitGo’s enterprise-grade wallet support for STX

- Surging activity on Stacks’ Bitcoin DeFi protocols

- Futures open interest hitting $85M

Market watchers note the irony: The ’anti-bank’ crypto crowd now cheers when legacy finance gives them validation. STX bulls counter that you need to play the game to change it - preferably while riding a 10x moonshot.

Ecosystem liquidity improving

Liquidity in the Stacks-based decentralized finance ecosystem is improving, the protocol announced on X early Friday, pointing to an over 400% surge in the stablecoin supply in the first quarter, the third-largest behind Morph and Cronos.

The total stablecoin supply in the ecosystem was nearly $7 million, up from around $1 million in early January, according to data source DefiLlama.