Stellar in Q2: Focus on utility takes center stage as XLM leaps forward
- Stellar expanded its infrastructure database by integrating its network with institutions and exchanges.
- The XLM price and volume surged but traders are not 100% bullish.
Peer-to-Peer (P2P) decentralized network Stellar Lumens [XLM] released an overview of its second quarter (Q2) performance on 19 July. Put together by the Stellar Development Foundation, Stellar noted it took significant steps toward the roadmap it built for 2023.
Read Stellar Lumens’ [XLM] Price Prediction 2023-2024
According to the report, Stellar highlighted how the Anchor Platform has been adopted by several projects.
Deploying use cases all-round
During the quarter, Stellar announced that the Anchor Network, through the SEP-24, enables off and on-ramp services while improving the process of wallet connection. The report noted that,
This makes it easier for projects to build on Stellar while decreasing development time and costs.
Besides SEP-24 and the Anchor Network, Stellar also provided its infrastructure for Circle [USDC] deposits and withdrawals on Coinbase. This has allowed both retail and institutional investors to get better access to stablecoins.
Following the development, on-chain data showed that the stablecoin supply held by whales increased to 52.60. Additionally, XLM’s social dominance has skyrocketed lately. Social dominance measures the share of discussions connected to a particular asset.
At press time, XLM’s social dominance reached a yearly high of 1.75%. This hike suggested that XLM was getting a lot of hype compared to other cryptocurrencies.
Furthermore, this positive development has also spread to the XLM price. At press time, the token value had increased by 71.92% in the last seven days.
Where is XLM headed through?
On assessing the on-chain volume, Santiment revealed that it had risen to 1.19 billion. This suggested that a lot of buying and selling of XLM had taken place in the last 24 hours. With XLM at $0.166, then the volume sustaining its increase could strengthen the price action.
However, the funding rate over the last few days has been oscillating between negative and positive regions. Funding rates are periodic payments made between long and short-positioned traders that hold perpetual futures contracts.
When the funding rate is negative, it implies that shorts are paying longs to keep their position. So, in this case, the broader sentiment is bearish.
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However, when the funding rate is positive, it means that the longs are paying shorts a funding fee to keep their bearish sentiment. At the time of writing, XLM’s funding rate was positive, implying that the broader sentiment toward the token was positive.