Stellar Soars 8% Overtaking Bitcoin’s Performance, What Prompted The Boom?
Up 10% in the daily and 36.3% in the 2 week chart, at the time of writing, Stellar Lumens (XLM) has been one of the best performing assets in the crypto top 30 by market cap. The cryptocurrency has managed to outperform Bitcoin, Ethereum, and other major coins in the top 10.
Stellar technical indicators have quickly moved into the buying zone with the simple moving average (SMA) and exponential moving average (EMA) crossing the $0,32 mark.
The Relative Strength Index (RSI) remains neutral with a 61.5 value, but the Moving Average Convergence Divergence, a metric used to measure price momentum in an asset, is flashing a buy signal.
XLM trending to the upside coincides with exponential growth in its ecosystem. As summarized by the Stellar Development Foundation (SDF), the network made significant developments in Q3, 2021.
In addition, it managed to secure important partnerships such as the one with payment giant MoneyGram. This will allow users to connect their wallets with the company’s global retail platform.
Thus, consumers will be able to leverage cash funding and payouts in USD Coin (USDC) with Stellar potential to instantly settle a transaction. In that sense, the network has expanded its main use case and its capacity to onboard millions of new users into its network.
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At the time, the CEO and Executive Director for the SDF Denelle Dixon called the partnership a demonstration of the power of blockchain technology to improve the legacy financial system. Dixon added:
Thanks to the reach of MoneyGram’s services and the speed and low cost of transactions on Stellar, a new segment of cash users will be able to convert their cash into and out of USDC, giving them access to fast and affordable digital asset services that may have previously been out of reach.
Stellar Growths To Fulfill Its Original Vision
In addition to the MoneyGram partnership, the SDF released a Whitepaper describing how Stellar was designed to facilitate the deployment of Central Bank Digital Currencies (CBDCs).
The SDF claims that the network has unique characteristics which allow it to support these assets and how a central bank can issue implement it on Stellar.
With the development of the digital Yuan and its fast progress, CBDCs are climbing the priorities of international governments. The network could support the CBDCs of the European Union, of developing countries in Africa, and others in the future.
In addition, as NewsBTC reported, the network will soon vote to implement Protocol which will grant it Automated Market Makers (AMMs) functionality. The SDF claimed:
This AMM development process to-date has been a shining example of how our entire ecosystem can work together, anchored around Stellar’s guiding open source principles, to further Stellar network development and sets a new bar on our collective collaboration.
The ecosystem has experienced other important developments and its use cases from cross-border payments to its energy efficiency to a recently announced initiative to accelerate blockchain education.
In many sectors, XLM seems to be moving ahead of the curve and it has reflected on its price action suggesting a strong potential for a sustained rally into Q4, 2021.