Stellar appears to be on the verge of a significant breakout, with stablecoins, active addresses, and other key indicators all experiencing upward trends.
Stellar (XLM) is demonstrating notable strength in the realms of decentralized finance and its technical metrics. On April 11, the stablecoin market capitalization on the network exceeded $300 million, achieving an unprecedented peak of $3.6 million. Concurrently, active addresses on the platform surged to 1.5 million, reflecting a 6.5-fold increase since April 7, according to Nansen.
This uptick coincides with the token’s price approaching significant technical levels. On April 11, Stellar saw a 5.33% increase from its daily low of $0.02252, bouncing off the lower end of a descending channel that has developed since December.
By maintaining this support, the token indicates a potential shift in momentum. If it can sustain its position above the midline at $0.2348, we might observe an additional wave of bullish activity.
Reasons for Stellar’s Increased Activity
The momentum for Stellar has been gradually building in recent weeks. On April 6, prior to the surge in active addresses, transaction counts increased by 24% week-over-week, hitting 70.5 million, with a monthly rise of 30% as well.
A recent analysis highlights several critical technical advancements. The Protocol 22 upgrade, introduced last December, brought enhancements beneficial to both users and developers by integrating zk-SNARKs, which enhance the speed and privacy of smart contracts. Additionally, this upgrade simplified the launch process for decentralized applications (dApps).
Other initiatives, such as Galexie and Stellar RPC, have improved network transparency and data accessibility. Galexie is aimed at providing historical data for block explorers and analytics, while Stellar RPC offers real-time data for DeFi applications.
The network has also established significant partnerships with major players like Stripe, Mastercard, and Paxos. For example, Stripe has enabled payouts in XLM, and Paxos has introduced its USD stablecoin on the Stellar ecosystem.