The Stellar (XLM) token has experienced a remarkable 11.5% surge in value between September 2 and September 8. This surge is particularly noteworthy, considering that Bitcoin and most other altcoins have been on a downward trajectory for the week. The surge in XLM’s price followed a critical juncture when it tested the support level at $0.113, marking its lowest point in the past eight weeks. But what fueled this sudden upswing in value?
Stellar’s Cryptic Announcement
Stellar (XLM) embarked on this upward journey after dropping a cryptic hint via social media. The organization teased something significant on September 12, with phrases like “something cool is dropping” and “change” in the air. The community’s anticipation heightened further when, on September 7, Stellar hinted at a potential partnership. However, the details remained elusive, with terms like “brand” and “real world” suggesting the possibility of rebranding and a shift toward real-world assets (RWA), including stocks, bonds, and real estate.
Regulatory Clarity and RWAs
Caroline Pham, one of the commissioners of the Commodity Futures Trading Commission, emphasized the significance of recent court decisions in clarifying the classification of cryptocurrency assets. She also highlighted the potential for modernizing financial markets through tokenizing money market funds using blockchain technology. While this doesn’t directly correlate with Stellar’s surge, it underscores the broader context of regulatory changes in the crypto space.
Unfounded Musk Speculation
Unfounded rumours circulated about Elon Musk’s social network, formerly known as Twitter (X), potentially integrating XLM after obtaining a currency transmitter license from regulators on August 28. It’s worth noting that X had already received approvals from six other states before this announcement. However, the reality is that XLM’s current market capitalization of $3.4 billion falls short of making it a top-20 contender, as per Messari Crypto’s “real volume” ranking.
Stellar’s Strategic Moves
In mid-August, the Stellar Development Foundation (SDF) made a strategic move by becoming a minority investor in payments provider MoneyGram International, leveraging its cash treasury. This investment aims to expand MoneyGram’s digital business and explore blockchain technology, aligning with Stellar’s goals of fostering financial inclusivity.
Soroban and Stellar’s Future
Stellar is gearing up to deploy Soroban, an innovative contract platform, on its main net. The company launched a $100 million adoption fund in October 2022 to incentivize developer activity on its Futurenet testnet. These moves suggest Stellar’s ambition to compete in the $37.8 billion decentralized application market currently dominated by Ethereum.
Stellar’s Future Outlook
While this week’s price surge for Stellar raises questions and excitement, separating unfounded speculation from concrete developments is essential. Stellar is positioning itself strategically in the crypto landscape, focusing on real-world assets and decentralized applications. However, until more concrete evidence emerges regarding the upcoming announcement, the likelihood of sustained gains above $0.14, last seen on August 10, remains uncertain. The crypto community eagerly awaits September 12 to unravel the mysteries behind Stellar’s recent surge.