3 Key Reasons Stellar (XLM) Price Could Soar This Crypto Cycle
3 Reasons Why Stellar (XLM) Could Experience Significant Price Growth This Cycle
Introduction to Stellar’s Potential
As the cryptocurrency market evolves, many altcoins are poised for growth, but Stellar (XLM) stands out as a potential leader. Recent insights from altcoin Buzz highlight three compelling reasons why XLM might see a substantial price increase in the current cycle.
Soroban: A Transformative Upgrade for Stellar
One of the key developments for Stellar is the introduction of Soroban, its new smart contract platform launched in 2024. This upgrade enables Stellar to support decentralized applications and DeFi tools, which were previously unavailable. The Stellar Development Foundation (SDF) has also established a $100 million fund to encourage developer engagement with this new technology.
With Soroban, the Stellar network can facilitate tokenized assets, wallets, bridges, and oracles, allowing developers to create their own tokens. Although XLM itself does not support staking, tokens created on Soroban can. The platform’s scalability and recent enhancements have made it more cost-effective and capable of handling complex applications. This evolution could significantly broaden Stellar’s ecosystem and, in turn, boost XLM’s price.
Institutional Confidence in Stellar
Another crucial factor contributing to XLM’s potential growth is the increasing trust from institutional investors. A notable example is Franklin Templeton, which has launched a tokenized money market fund named Benji on the Stellar network. Currently, Benji manages over $810 million in real-world asset investments, with approximately $431 million on the Stellar platform.
This level of institutional activity is significant and reflects a growing confidence in Stellar. Major companies like IBM, Mastercard, Visa, Deloitte, and Paxos are also involved with Stellar, indicating that these partnerships could enhance the long-term value and stability of XLM. The low transaction fees, rapid settlement times, and regulatory-friendly nature of Stellar make it an attractive option for these institutions.
Rapid Expansion of Stellar’s Ecosystem
Stellar is also diversifying beyond its initial focus on remittances. The network has partnered with MoneyGram for global payment solutions and is collaborating with Circle to support USDC. With the GENIUS Act providing clearer regulations for U.S. stablecoins, Stellar’s partnership with Circle is strategically advantageous.
Recently, PayPal has integrated its PYUSD stablecoin into the Stellar ecosystem, extending its reach to 180 countries. This expansion is accompanied by a surge in on-chain activity, with active addresses increasing from 65,000 to 80,000 in just one week. Such rapid growth in usage often signals significant developments on the horizon.
Stellar has set ambitious goals, including breaking into the top 10 blockchains by total value locked (TVL) in DeFi. Currently ranked around 37th, the launch of Soroban could propel XLM’s price upward if TVL increases significantly.
Future Price Predictions for XLM
Stellar’s all-time high is approximately 90 cents, and analysts believe this level is attainable once again. If the current bullish market trend continues, XLM could potentially exceed $1.50, especially given the favorable developments surrounding the network.
Despite concerns regarding centralization—since the Stellar Development Foundation holds 40% of all XLM—the positive aspects may outweigh the risks. With a functioning network, global partnerships, and the innovative Soroban platform, XLM is well-positioned compared to many other altcoins in the market.
Conclusion
As the cryptocurrency landscape continues to evolve, Stellar’s advancements and institutional backing suggest a promising future for XLM. For those interested in staying updated on the latest developments in the crypto world, subscribing to relevant channels can provide valuable insights and analysis.
