Token cryptocurrency Stellar XLM and the numbers of the arithmometer. The concept of XLM.
The Stellar price has lagged the performance of other altcoins recently. The XLM is trading at $0.3593, which is slightly below last week’s high of $0.4076. This price is about 54% below the highest point this year. It has a market capitalization of more than $8.3 billion while its ranking in crypto has declined to 22.
For starters, there are several types of blockchain projects. Bitcoin, which represents the first generation, is a cryptocurrency whose goal is to replace fiat currencies like the dollar. It does this by removing the power from a centralized entity like a central bank to a decentralized network.
Second, there are infrastructure platforms like Ethereum, Polkadot, and Solana. These platforms help developers build decentralized applications such as those in the DeFi industry. Some of the top apps built using this network are Aave and Compound.
Third, there are those that are aiming to solve specific problems. For example, Audius is aiming to help musicians earn more money while Filecoin is changing the file storage industry. Stellar falls into this category. Like Ripple, the network is disrupting the remittances industry.
Stellar is a blockchain project that helps people to create digital representatives of key currencies like the euro and the US dollar. With the global remittances industry being relatively stable, the amount of transactions in the network has made a strong recovery. Indeed, in the past 24 hours, the number of operations within the network has jumped to more than 6.8 million while the volume has risen to more than 11 million.
With Stellar being in the remittances industry, there have been rumours that the platform is considering acquiring MoneyGram, the storeyed cross-border payment company. Therefore, there is a likelihood that the XLM price has remained steady as investors wait for such a confirmation.
The daily chart shows that the XLM price rallied sharply in the third week of July. While the rally was in line with what other tokens were doing, it was mostly because of the MoneyGram rumours. Today, the coin has jumped above the 25-day and 50-day exponential moving averages. It has also formed a bullish flag pattern.
Therefore, there is a likelihood that the coin will have a major breakout in the coming days. If this happens, the next key level to watch will be its all-time high, which is about 121% above the current level.