XLM falls despite Stellar’s $114T tokenization opportunity – Just bad timing?

Stellar [XLM] has been among the top chains when it comes to tokenization. However, it trails behind Securitize, Ondo Finance [ONDO], and Centrifuge [CFG], among others. They occupy the top three positions in terms of tokenized market cap.

Despite being among the trendy tokens, the price of XLM crypto is down about 2.60% in the past 24 hours, trading at around $0.1830. Interestingly, its chain activity remains sizeable.

XLM’s tokenization influence on its chain activity

The tokenization narrative is making XLM crypto one of the trendiest chains. The good news is that its fault tolerance and institutional trust have been improved. This is because MoneyGram, Figure, and Range became XLM’s tier 1 validators.

On top of that, Stellar has partnered with DTCC to tokenize more than $114 trillion in securities by 2027. Moreover, Tradable would make a transfer of $1 billion in private credit through Stellar.

Both moves bridge traditional finance (TradFi) and decentralized finance (DeFi), enhancing blockchain infrastructure in financial markets.

As such, it is expected to grow the market cap of tokenized securities on XLM even further. At press time, this cap had already exceeded $2.90 billion.

The tokenized stablecoin market cap on Stellar was above $689 million at press time. This showed a big chunk of capital was moving through the chain. This resulted in high network activity.

In fact, the number of transactions on XLM was averaging 5.5 million per day. In total, more than 37.9 million transactions were processed this week, reinforcing the chain’s usage for tokenization.

XLM price prediction – Should traders buy?

Despite the high network usage and a roadmap to tokenize $114 trillion in securities, the price of XLM is still lagging.

The altcoin has been consolidating in a symmetrical triangle pattern since late May. However, it’s nearing a breakout as it trades at the apex of the pattern. The breakout is anticipated because contraction is usually followed by expansion.

The lag is as a result of capital outflow, as the Money Flow Index (MFI) is declining but above the neutral level. Moreover, the MACD shows bears are in control, though their strength is minimal.

A breakout and hold above the pattern would suggest prices are likely to go up. On the other hand, a breakdown would extend the bearish market structure that has been in place since last August.

Final Summary

• XLM crypto partners with DTCC to tokenize $114 trillion, as tokenization on the chain continues to grow and fuel network activity.
• XLM price action is trading inside a massive triangle pattern where a breakout on either side would determine the altcoin’s next trajectory.