Stellar's XLM Token Surges Amid Market Downtrend, Excitement Surrounds Upcoming Announcement and Partnership Teasers
Summary:
Stellar's XLM token sees notable price increase amid downtrend in the crypto market. Teasers of a significant announcement and potential partnership add to the excitement. Meanwhile, Stellar prepares to deploy Soroban smart contract platform as it aims to compete in the dApps market. The potential for real-world asset integration and regulatory clarity in the crypto industry further enhance Stellar's prospects.
Stellar's XLM token witnessed a significant 11.5% increase in value during the week of September 2nd to September 8th, a notable feat considering the downtrend of Bitcoin and other altcoins. This surge followed XLM's testing of the $0.113 support level, which marked its lowest point in the past eight weeks. Stellar Org, through a cryptic social media announcement, hinted at a significant event taking place on September 12th with phrases like "something cool is dropping" and "change" on the horizon. A subsequent teaser about a potential partnership further heightened expectations, suggesting a possible rebranding and a shift towards real-world assets (RWA) like stocks, bonds, and real estate.
Caroline Pham, one of the commissioners of the Commodities Futures Trading Commission (CFTC), emphasized the potential for regulatory clarity in the cryptocurrency market due to recent court decisions on asset classification. Pham also highlighted the importance of RWAs and their role in modernizing financial markets through the tokenization of money market funds on blockchain technology.
There were unfounded rumors circulating that Elon Musk's social platform X (formerly Twitter) might integrate XLM, following the platform's currency transmitter license acquisition on August 28th. However, it should be noted that XLM's current market capitalization of $3.4 billion falls short of making it a top 20 contender. Stellar Development Foundation (SDF) had previously become a minority investor in payments provider MoneyGram International, expanding its digital business and exploring blockchain technology.
Stellar is preparing to deploy a smart contract platform, Soroban, on its mainnet, and has launched a $100 million adoption fund to encourage developer activity. While this week's price action raises eyebrows, it is important to separate fact from speculation. Stellar is positioning itself to compete in the decentralized application (dApps) market, which is currently dominated by Ethereum. The potential of RWAs in decentralized finance (DeFi) is evident, with examples like MakerDAO's holdings of U.S. Treasuries. However, concrete evidence regarding Stellar's upcoming announcement on September 12th is still awaited, making predictions of further gains uncertain.
Published At
9/8/2023 8:05:00 PM
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