The hype surrounding the ordinal numbers of Bitcoin is causing the stacks to rise again

What happened

Few cryptos see this kind of appreciation stack (CRYPTO:STX) has been looking good lately.

As of 2:45 p.m. ET, this blockchain project is up 10.9% over the past 24 hours. The move brings the cryptocurrency’s overall year-to-date gain to almost 320% as of this writing. This is also a token that has officially surpassed the $1 billion mark and occupies a top 50 spot in the crypto rankings by market cap.

Not bad for less than two months of work.

so what

The incredible hype surrounding non-fungible tokens (NFTs) in 2021 has all but evaporated. However, there are still areas of the NFT market that have provided investors with impressive gains, or at least the prospect of such gains.

Bitcoin‘S (BTC -1.71%) The Ordinals Protocol, which went live on Jan. 21 and allows NFTs and other digital art to be entered into transactions on the Bitcoin blockchain, has caused quite a stir. As a companion chain with embedded smart contract technology targeting Bitcoin, Stacks appears to be the behind-the-scenes way for investors to capitalize on this newfound surge in Bitcoin utility.

What now

Why it took Bitcoin so long to adopt NFTs is unclear. However, given the initial success of this launch, there seems to be a lot of interest. Stacks continues to see far greater upward momentum as many investors seem more intent on leveraging the technology behind the push than the assets themselves.

My view is that over the long term, NFT technology is likely to play a long-term role in both value storage and blockchain-based utilities (being able to get things done with crypto). The adoption of this technology by the Bitcoin network appears to be a step towards creating more value for end users.

Accordingly, with so much value being attributed to Stacks in such a short amount of time, it is difficult to evaluate at these levels. Investors should be wary of a potentially overblown rally – cooling off may be needed before the next rally.

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

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