Stratis, the blockchain development platform, took a major leap towards the launch of its new Ethereum-compatible blockchain called StratisEVM. The progress update has pumped the current STRAX token over 60% in two days, but it may mark the peak.
What you'll learn 👉
Why Is Stratis Switching Tokens?
As Stratis embarks on this pivotal next chapter, the token swap enables transitioning the ecosystem to the more capable Ethereum-based blockchain framework. Per the announcement:
“This crucial step marks the transition from the STRAX Blockchain to the new Ethereum-based StratisEVM ecosystem.”
Key elements of the schedule are:
- STRAX swaps to STRAT at a 1:10 ratio
- Swaps open until January 31st when balances will be snapshotted
- StratisEVM mainnet launches February 1st
- 6-week off-chain swap window after launch
Explaining the 60%+ Stratis Token Price Spike
In just over two days since the swap details emerged, STRAX prices have rocketed from around $0.8 to over $1.4 – a 65% surge but the price is presently at $1.2. This sharp move likely comes from speculation on the future utility and value of the new STRAT token.
With the swap ratio entitling holders to 1 STRAT for every 10 STRAX, part of the rally constitutes early pricing of STRAT. As anticipation builds ahead of the February launch, expectations seem to be running high over StratisEVM capabilities and adoption potential.
Why The Move May Not Last
However, this pre-mainnet spike may mark the peak of upside price action for STRAX in this cycle. As the actual swap mechanism launches by February, selling pressure may return to STRAX as investors take profits, rotate holdings into STRAT via the swap, or reallocate capital elsewhere after the announcement spike.
While StratisEVM unlocks plenty future growth potential, STRAX is being phased out, so this short-term pre-swap price pump could be the end of major positive moves for the old token despite the longer-term promise of the new blockchain and STRAT coin based on EVM standards.
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