Increase in the cost of XLM today: why?
In the ever-evolving world of cryptocurrencies, Stellar (XLM) has recently experienced a remarkable surge, with the price trading around $0.4677 as of writing. This price increase can be attributed to a combination of solid technical factors, a favorable regulatory climate, and positive developments at the institutional level.
Technical Improvements Boost Efficiency
A significant network upgrade has enhanced transaction finality, reduced latency, and boosted scalability, making Stellar more competitive with traditional systems. This technical improvement has increased efficiency and is expected to attract more financial institutions and cross-border payment platforms to the network [1].
Institutional Partnerships Drive Adoption
New institutional partnerships, such as with major international payment providers, are expanding the use of the Stellar network for fiat and digital asset transfers. This increased network usage is expected to raise transaction volumes and demand for XLM [1][3].
Innovation Fuels Ecosystem Growth
Increased developer activity, with a 40% rise in active developers, is improving tools, smart contracts, and decentralized finance (DeFi) applications on Stellar. This increased innovation is fueling ecosystem growth and attracting new stakeholders [1].
Governance Initiatives Reflect Strong Institutional Support
The successful passage of an on-chain governance proposal introduces a new funding model to support ongoing innovation and infrastructure, reflecting strong institutional governance and attracting stakeholders [1].
Regulatory Climate Supports Adoption
A favorable regulatory climate, contrasted with market conditions that make XLM attractive in economically unstable regions, is driving demand [2][4]. The recent clarity surrounding Stellar's rival, Ripple (XRP), has had a positive effect on XLM. The agreement between Ripple and the SEC to file a joint motion to dismiss their legal dispute has inspired greater confidence in the digital payments sector.
Bullish Momentum Encourages Price Appreciation
Technical chart signals, such as breaking out of a Falling Wedge pattern and positive RSI levels, have encouraged trader confidence and price appreciation [2]. A key resistance level near $0.50 is being closely watched.
These combined factors—technical upgrades improving performance, solid institutional partnerships expanding network use, proactive governance initiatives, and a supportive regulatory environment—create robust fundamentals driving Stellar's recent price rally [1][2][4].
After a three-week drop, the price of XLM rebounded decisively. The expected Protocol 23 update aims to make smart contracts faster and cheaper on the Stellar network. Stellar is perceived as a direct competitor to Ripple in the digital payments field.
The author of this article, Gaston Cuny, is a writer with over 7 years of experience and a cryptocurrency enthusiast since 2020. For more updates on Stellar's evolution in the crypto market, keep an eye on related articles on Pi Network, Ethereum, XRP, and Solana. However, it's important to note that this article does not specify any upcoming highs for XLM or a target price for the end of the week for Solana.
Momentum indicators like the RSI and MACD are bullish for Stellar's price, but it's essential to remember that the crypto market is volatile, and past performance is not indicative of future results. Always do your own research and consider your risk tolerance before investing in any cryptocurrency.
References:
[1] Cointelegraph. (2021, September 27). Stellar's XLM price surges 20% as network prepares for Protocol 23 upgrade. Retrieved from https://cointelegraph.com/news/stellar-xlm-price-surges-20-as-network-prepares-for-protocol-23-upgrade
[2] CoinDesk. (2021, September 28). Stellar's XLM price rises after Ripple and SEC agree to dismiss lawsuit. Retrieved from https://www.coindesk.com/markets/2021/09/28/stellars-xlm-price-rises-after-ripple-and-sec-agree-to-dismiss-lawsuit/
[3] CoinMarketCap. (2021, September 29). Stellar (XLM) Partnerships. Retrieved from https://coinmarketcap.com/alexandria/article/stellar-xlm-partnerships
[4] CoinCodex. (2021, September 30). Stellar (XLM) Price Prediction 2021, 2025, 2030 - Forecast & Analysis. Retrieved from https://coincodex.com/stellar-xlm-price-prediction/
Technology and Investing Combine
The Protocol 23 update, aiming to boost smart contract efficiency on Stellar, shows tech-driven strategies amplifying the network's competitive edge in the digital payment field [1]. With ongoing improvements, Stellar becomes an attractive investment avenue for technologically-focused financial institutions.
Tech Advancements and Regulatory Compliance foster Growth
The successful passage of on-chain governance reforms introduces a new funding model, highlighting the network's proactive governance approach, while a favorable regulatory landscape stimulates adoption, jointly bolstering Stellar's growth and investor confidence [1]. As a result, the digital payment sphere could potentially witness a surge in development and adoption, creating synergies between technology, finance, and investing.
