{"id":22121,"date":"2023-09-09T03:36:35","date_gmt":"2023-09-09T03:36:35","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/why-is-stellar-xlm-price-up-this-week\/"},"modified":"2023-09-09T03:36:37","modified_gmt":"2023-09-09T03:36:37","slug":"why-is-stellar-xlm-price-up-this-week","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/why-is-stellar-xlm-price-up-this-week\/","title":{"rendered":"Why is Stellar (XLM) price up this week?"},"content":{"rendered":"
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The Stellar\u00a0token experienced a notable 11.5% increase in value between Sept. 2 and Sept. 8, a novelty given that Bitcoin and most altcoins are down for the week. The surge came after Stellar (XLM)\u00a0tested the $0.113 support level, which marked its lowest point in the past eight weeks. The price upswing followed a preliminary announcement made by the Stellar organization on social media.\u00a0<\/p>\n

While the announcement was somewhat cryptic, it hinted at something significant occurring on Sept. 12, with phrases like \u201csomething cool is dropping\u201d and “change\u201d on the horizon.<\/p>\n

XLM price in USD at Bitfinex, 12-hour time frame. Source: TradingView<\/em><\/figcaption><\/figure>\n

More recently, on Sept. 7, Stellar further heightened expectations by teasing a potential partnership. However, similar to the earlier announcement, no specific details were provided, with only words like \u201cbrand\u201d and “real world\u201d used, suggesting a possible rebranding and a shift toward real-world assets (RWA) like stocks, bonds and real estate.<\/p>\n

Caroline Pham, one of the five commissioners of the Commodity Futures Trading Commission, emphasized on July 17 that recent court decisions regarding the classification of cryptocurrency assets would ultimately lead to regulatory clarity. Pham also stressed the significance of RWAs and highlighted the opportunities for modernizing financial markets through the tokenization of money market funds on blockchain technology.<\/p>\n

No, it\u2019s not likely that Elon Musk is coming to save XLM<\/h2>\n

Unfounded rumors circulated regarding Elon Musk\u2019s X (formerly Twitter) potentially integrating XLM after the social network obtained a currency transmitter license from regulators on Aug. 28. It\u2019s worth noting that X had previously received approvals from six other states prior to this latest announcement.<\/p>\n

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Elon Musk will build X into the worlds most valuable financial institution <\/p>\n

He is acquiring all the necessary licenses to integrate CRYPTO into Twitter\/X<\/p>\n

My hope is that $ETH<\/a>, $XRP<\/a> or $HBAR<\/a> or even $XLM<\/a> is one day involved pic.twitter.com\/YjRTxF0pMz<\/a><\/p>\n

\u2014 MASON VERSLUIS (@MasonVersluis) August 31, 2023<\/a><\/p><\/blockquote>\n

Moreover, it\u2019s important to note that even if X decides to integrate multiple cryptocurrencies, XLM\u2019s current market capitalization of $3.4 billion falls short of making it a top 20 contender. A similar analysis, using Messari Crypto\u2019s “real volume\u201d ranking, positions XLM as 20th in terms of trading volume, trailing behind competitors such as Bitcoin Cash (BCH), Sui (SUI), Litecoin (LTC) and Ripple\u2019s XRP (XRP).<\/p>\n

In mid-August, the Stellar Development Foundation (SDF) leveraged its cash treasury to become a minority investor in payments provider MoneyGram International. SDF, the entity behind Stellar\u2019s native token development, had previously established a commercial partnership with MoneyGram in 2021.<\/p>\n

According to Denelle Dixon, SDF\u2019s CEO and executive director, this investment would contribute to MoneyGram by expanding its digital business and exploring blockchain technology. <\/p>\n

Stellar’s website states:<\/p>\n

\u201cYour application can now seamlessly connect to MoneyGram\u2019s retail network through a single integration, allowing users to deposit or withdraw cash from their digital wallets via Stellar USDC without requiring a bank account.”<\/p><\/blockquote>\n

The website adds the integration\u2019s various benefits, including the ability for users to \u201ctop up their digital wallet balance with cash,” conduct \u201cnear-instant, low-cost cash transactions\u201d using \u201cdollar digital currencies\u201d and complete Know Your Customer procedures \u201cthrough MoneyGram\u2019s user-friendly interface.”<\/p>\n

Related:\u00a0Ripple acquires Fortress Trust, expands license portfolio in the US<\/em><\/strong><\/p>\n

Stellar\u2019s announcement will likely involve Soroban<\/h2>\n

Stellar is preparing to deploy a smart contract platform called Soroban on its mainnet. The company launched a $100 million adoption fund in October 2022 to encourage developer activity for applications on its Futurenet testnet.<\/p>\n

Although this week\u2019s price action does raise eyebrows, aside from the unfounded speculation, all signs indicate that Stellar is positioning itself to compete in the $37.8 billion decentralized application market. The current market leader, Ethereum, holds a dominant 56.6% market share, according to DefiLlama, despite its average transaction fee of $4.<\/p>\n

It\u2019s undeniable that RWAs in decentralized finance hold significant potential, as exemplified by MakerDAO\u2019s holdings of U.S. Treasurys, which have boosted the protocol\u2019s revenues and effectively mitigated the increased exposure of its Dai (DAI) stablecoin to USD Coin (USDC). <\/p>\n

XLM investors will continue to eagerly await the Sept.12 announcement, but until concrete evidence emerges regarding what this payment network might unlock, the likelihood of achieving further gains of 12% or more to surpass the $0.14 price last seen on Aug. 10 remains slim.<\/p>\n

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<\/div>\n