Stellar, the cryptocurrency known for its focus on decentralized finance and technical innovations, appears to be on the brink of a breakout. Recent data has shown a surge in stablecoin market cap, active addresses, and other key metrics, indicating a growing interest and activity surrounding the XLM token.
On April 11, the stablecoin market cap on the Stellar chain surpassed $300 million, reaching a new all-time high of $3.6 million. Concurrently, active addresses on the chain saw a significant increase, reaching 1.5 million according to Nansen, marking a 6.5-fold rise since April 7.
Technical analysis also suggests that Stellar’s price is approaching crucial levels. After bouncing back from the lower end of a descending channel that formed in December, the token experienced a 5.33% increase on April 11, indicating a potential shift in momentum. If Stellar can maintain support above the midline at $0.2348, further bullish momentum may be expected.
The recent surge in Stellar’s activity can be attributed to several factors. Transaction counts have been steadily increasing, with a 24% rise from the previous week and a 30% increase on a monthly basis as of April 6. A recent report by Nansen highlighted key technical upgrades, such as the Protocol 22 update launched in December, which introduced improvements for both users and developers. This upgrade enabled zk-SNARKs for faster and more private smart contracts, as well as easier dApp deployment.
Additional developments, such as Galexie and Stellar RPC, have enhanced the network’s transparency and data accessibility. Galexie provides historical data for block explorers and analytics, while Stellar RPC supports real-time data for DeFi applications. Stellar has also secured significant partnerships with companies like Stripe, Mastercard, and Paxos. For example, Stripe now allows payouts with XLM, and Paxos has launched its USD stablecoin on the Stellar network.
Overall, the combination of technical advancements, increased activity, and strategic partnerships bodes well for Stellar’s future potential. As the cryptocurrency market continues to evolve, Stellar appears poised to capitalize on these trends and potentially experience a breakout in the near future.