Why is Stellar (XLM) price surging this week?
The value of Stellar (XLM) has experienced a notable increase of 11.5% between September 2 and September 8, while Bitcoin and most other alternative coins have been declining during this time. This surge in price came after Stellar (XLM) tested its lowest point in eight weeks at the $0.113 support level. The price upswing followed a preliminary announcement by the Stellar organization on social media, which hinted at something significant happening on September 12.
Anticipating a Major Announcement
Although the recent announcement made by Stellar was somewhat cryptic, it created anticipation for something significant happening on September 12. Phrases such as “something cool is dropping” and “change” were used in the announcement, hinting towards a major development.
On September 7, Stellar further increased expectations by teasing a potential partnership, but no specific details were provided. Keywords such as “brand” and “real world” were used in the announcement, indicating a possible rebranding and a focus on real-world assets like stocks, bonds, and real estate.
Dispelling Rumors of Elon Musk’s Involvement
There were unfounded rumors circulating about Elon Musk’s integration of Stellar (XLM) after his social media platform, X, obtained a currency transmitter license. However, it is important to note that even if X decides to integrate multiple cryptocurrencies, Stellar’s current market capitalization of $3.4 billion falls short of making it a top contender among the top 20 currencies. Stellar’s trading volume also ranks 20th according to Messari Crypto’s “real volume” ranking, trailing behind other competitors.
Stellar’s Recent Strategic Moves
In mid-August, the Stellar Development Foundation (SDF) became a minority investor in payments provider MoneyGram International, leveraging its cash treasury. The intent of this investment is to expand MoneyGram’s digital business and explore blockchain technology. Stellar’s website states that applications can now seamlessly connect to MoneyGram’s retail network through a single integration, allowing cash deposits and withdrawals from digital wallets via Stellar USDC without requiring a bank account.
Preparing for Competition in the Decentralized Application Market
Stellar is getting ready to deploy its smart contract platform called Soroban on its mainnet. The company had previously launched a $100 million adoption fund to encourage developer activity on its Futurenet testnet. While Ethereum holds the dominant market share in the decentralized application market, Stellar is positioning itself to compete with its adoption-focused approach. The potential of real-world assets in decentralized finance is significant, as demonstrated by MakerDAO’s holdings of U.S. Treasuries, which have boosted the protocol’s revenues.
What Lies Ahead for Stellar (XLM)
Investors of Stellar (XLM) are eagerly awaiting the September 12 announcement. However, 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 August 10 remains slim.
This article is for general information purposes only and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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