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- Stellar transaction and stablecoin supply jumps significantly over the past month as investors demonstrate confidence in the blockchain.
- XLM price forms a falling wedge bullish pattern, which implies a 30% rally from current levels.
The Stellar blockchain has recently demonstrated strong performance with a surge in network transactions and stablecoin growth.
These positive developments, together with rare bullish patterns, have raised expectations of a 30% rally for Stellar’s native token, XLM.
Growth in Stellar Transactions
Recent data shared by Nansen showed transactions on the Stellar Network jumped 14% over the past 30 days to $81.2 million. As a result, Stellar is currently the eighth most active chain in the crypto industry.
Within the past 30 days, Stellar active addresses increased by 81% to 515,000, while network fees surged 120% to $201,000. The increase in network fees continues in an ongoing trend that began this year.
Notwithstanding, the total value locked (TVL) on the Stellar network has soared to $139.5 million. The soaring TVL indicates growing interest and participation in the protocol. More users are either depositing or staking their assets on the Stellar network.
The rising investor confidence in Stellar is further indicated by its increased adoption in global payments. According to data from Artemis, Stellar stablecoin supply jumped by 21.6% in the last 30 days to $209.4 million.
At the same time, the number of transactions rose 17% to $9.8 million. Similarly, the adjusted transaction volume jumped 22% to $1.9 billion.
Stellar has continued to gain attention in global payments due to its faster transaction speeds and lower costs. As we covered in our latest report, PayPal revealed plans to integrate its stablecoin PYUSD to the Stellar Network. Leveraging the blockchain’s capabilities, PayPal aimed to expand its utility for real-world payment, commerce, and microfinancing.
Furthermore, Mastercard has also partnered with Stellar to simplify cross-border crypto payments. As we discussed earlier, the partnership benefits from Mastercard’s Crypto Credential.
This is a digital framework that allows users to send crypto payments using easy identifiers like email addresses. It also ensures compliance through automated background checks.
XLM Price Analysis and Upcoming Upgrade
As of this writing, XLM is traded at $0.3918, down 3.3% over the past 24 hours. However, the XLM price has rallied more than 57% over the past month.
Analyzing the daily chart showed XLM price formed a double-bottom pattern at $0.2177, and a neckline at $0.335.
Note that the XLM price reached the $0.335 peak on May 12 and then formed the highly bullish golden cross pattern on July 13. XLM also formed a falling wedge pattern, which happens when there are two descending and converging trendlines.
This bullish setup suggests XLM could see a breakout to a high of $0.5183. This potential breakout implies over 30% above the current level.
A move above that level will point to more gains, potentially to $0.6365, implying a 61% above the current level.
The upcoming Protocol 23 upgrade, scheduled to go live on August 26, could serve as the next catalyst for the XLM price. As noted in our earlier post, the upgrade caters to key areas like smart contract efficiency, token functionality, and scalability.
