- Stellar resolved a bug with the network nodes by getting them back in services with a protocol upgrade.
- The CAS-38 proposal is ready for implementation with the Protocol 18 upgrade, improving liquidity with AMM implementation.
As of press time, Stellar’s XLM price is trading 5.5 percent higher even as the overall cryptocurrency market comes under pressure. The price rise comes as the Stellar Development Foundation (SDF) updated the community about accomplishments for the second quarter of 2021. The SDF mentions three major strategic pillars for the growth of the Stellar blockchain network.
- Supporting the usability and robustness of Stellar.
- Increasing trust for the Stellar blockchain among people.
- Developing sustainable Stellar use-cases for cross-border payments and securitized assets.
In its Q2 report, SDF shares what they have accomplished in the last quarter measuring against these three pillars. The Stellar blockchain had been through some testing times as it faced some technical headwinds in early April.
The horizon API instance went down with validators forced to temporarily halt the nodes. However, the validators managed to keep the network online. There were enough validators to securely process the transactions. At the same time, the engineering team brought new nodes and new Horizon instance online. This was a true test for Stellar to demonstrate its power of decentralization.
Stellar’s network growth
The Stellar blockchain network registered a strong growth towards its robustness and usability. In Q2 2021, the total accounts on the blockchain jumped 20 percent YoY. Similarly, total payments were up by a staggering 160 percent and total operations processed were up by 173 percent. The average daily DEX volumes were also up by 27 percent.
In addition, the relevant assets tied to financial instruments like stocks and fiats saw a 58 percent increase YoY. Thus, the on-network transaction volumes for these relevant assets were also up by 760 percent YoY. On the other hand, XLM derivates products hit the market during Q2 2021. Stellar exchange-traded notes were launched on the Boerse Stuttgart exchange in May 2021.
Stellar community funding at investments
At the beginning of Q2 2021, the Stellar Community Fund Seed Round awarded 8 projects with $5 million in funding. By the end of June last month, a new SCF round went live to which 40 projects applied.
Additionally, SDF made two Enterprise Fund investments in Airtm and Tribal Credit pouring a total of $18 million last quarter. The Airtm investment alone was $15 million and the largest from the Foundation.
Protocol upgrade and network liquidity
Following the bug in early April 2021 which disrupted the network nodes, the Foundation introduced two protocol upgrades. Protocol 16 helped all the affected validator nodes to restore service. Protocol 17 introduced an interesting feature dubbed asset clawback. This allowed issuers of financial instruments to comply with regulatory requirements.
Additionally, SDF also noted the CAP-38 proposal that introduces Automated Market Makers (AMMs) to the Stellar blockchain, is ready for implementation. The implementation will happen as part of Protocol 18 and will improve liquidity on the Stellar blockchain. The report reads:
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If validators vote to accept the new protocol with CAP-38, users will be able to create liquidity pools – enabling cheaper, faster, and highly usable cross-asset payments and democratizing market making by giving everyone the ability to participate in liquidity provision.
In a further development to engage with its community, SDF will be releasing the Stellar Quest Series 3.