What happened?
Stellar’s cryptocurrency, $XLM, saw a significant price increase of 72% in just three weeks. This surge was catalyzed by PayPal’s decision to use Stellar’s network for its stablecoin and an uptick in on-chain activity. Stellar recorded its highest-ever total value locked (TVL), surpassing $140.7 million, driven by the growth of native DeFi liquidity.
Who does this affect?
Both institutional and retail investors are affected by Stellar’s recent developments. Institutions like PayPal benefit by leveraging Stellar’s fast and low-cost blockchain for global remittances and payments. Meanwhile, retail investors see potential gains from $XLM’s price rally and increased adoption in the cryptocurrency market.
Why does this matter?
The substantial increase in $XLM’s price and Stellar’s market activities could signal burgeoning trust and usage in the blockchain sector, influencing other cryptocurrencies and blockchains. By hosting over $528 million in real-world assets and seeing increased institutional interest, Stellar positions itself as a key player in digital finance markets. The partnership with PayPal and the overall boost in network activity are likely to enhance Stellar’s competitiveness and visibility in the crypto space.