Last month, the Stellar Development Foundation (SDF) participated in a cryptocurrency hearing hosted by the U.S. House Committee on Financial Services.
The current status of Stellar: In its seven years of development, Stellar used to have an illustrious history. It was once a top 10 blockchain project in terms of Market Cap. And even set a record for a 100x increase in token price before DeFi Summer.
However, according to our Analytics, Stellar is currently growing slowly.
After years of growth, it has a TVL of around US$1.5 billion to date, ranking it 40th among public chains, and this rate is far less than that of the up-and-coming public chains that are just starting.
Stellarโs ecosystem is highly underdeveloped, with only two projects at present and very homogeneous.
Reasons for Stellarโs Slow Growth: Poor Ecosystem Incentives, At the time of Stellarโs creation, an inflation mechanism was set up to prevent a reduction in the circulation of XLM.
Each year the inflation scheme generates tokens equal to 1% of Stellarโs total supply and accounts for more than 0.05% of Stellarโs total share receiving additional XLM coins.
One reason for this is that the foundation has been involved since the early days and therefore can participate in the annual distribution of newly generated tokens.
The Omission of SDF: The foundation holds a large number of tokens due to inflationary mechanisms. However, the foundation has failed to use these tokens to help the project function better. In 2019 the foundation has only consumed $40,000 for community projects.
In 2019, the Stellar Development Foundation initially mitigated the token mismatch by ending its inflation plan and destroying more than 50% of its tokens. However, XLM still needs to expand its usage scenario.
The Road Ahead for Stellar, Although Stellar ended up lagging since its launch, it is set to make a comeback from 2021.
With the explosion of DeFi projects, multi-currency, cross-chain transfers are a current blockchain pain point, and Stellar offers one of the solutions that define a new standard for global payments.
EVM Compatibility: The incompatibility of Stellar contracts with EVM means that developers cannot quickly deploy projects on Ethereum to Stellar in February 2021.
FlareNetworks has announced the integration of Stellar Lumens (XLM) with its smart contract platform, thus enabling compatibility with the Ethereum blockchain. If successfully landed, Stellar will be even more scalable.
Stellarโs recent moves show that it continues to interface with the financial community and bridge the gap between traditional and on-chain payments.
Stellar 2022 road map looks promising as the team pushes harder to keep the payment platform borderless, limitless, and powerful in DeFi space. With more products coming and improvement of the existing ones, XLM has huge potential to continue mooning in 2022.
Stellar receives an average long-term technical score of 65 from InvestorsObserver's research based on historical trading patterns. The proprietary scoring system weighs price movement from recent months to a year, analyzes the coin's support and resistance levels, and where it is relative to long-term averages to determine whether it's a strong buy-and-hold investment opportunity. XLM currently holds a superior long-term technical analysis score than 65% of cryptos in circulation. This ranking metric is most useful to buy-and-hold type investors looking for strong steady growth when allocating their assets. coins with a high long and short-term technical score can help indicate assets that have bottomed out, providing investors a chance to 'buy the dip'.
Trading Analysis: Stellar's price is -$0.0600000 (-19.70%) below its 100-day moving average price of $0.330000000 as its price at the moment sits at $0.250000000. Additionally, XLM is $0.0600000 (-5384.59%) higher than its 52-week low price of $0.200000000 while -$0.54000000 (-1222.75%) under its 52-week high of $0.800000000. The current trading price in relation to its long-term average along with its 52-week high and low, gives XLM an average long-term technical score of 65. Long-term trading movement of Stellar suggest that investors are neutral on the coin at the moment. Stellar has a market capitalization of $6,457,733,682.55 and a relatively high average daily volume with $2,067,837,419.32 worth of the currency traded over the typical 24 hour period. Over the last 24 hours, ๐๐๐'๐ฌ ๐ฏ๐จ๐ฅ๐ฎ๐ฆ๐ ๐ข๐ฌ ๐๐๐ฅ๐จ๐ฐ ๐ข๐ญ๐ฌ ๐ฌ๐๐ฏ๐๐ง ๐๐๐ฒ ๐๐ฏ๐๐ซ๐๐ ๐ ๐ฐ๐ข๐ญ๐ก ๐๐๐,๐๐๐,๐๐๐.๐๐ ๐๐ฑ๐๐ก๐๐ง๐ ๐๐
- ๐๐โ๐ ๐ถ๐บ๐ฝ๐ผ๐ฟ๐๐ฎ๐ป๐ to keep in mind that cryptocurrency markets are extremely volatile, making it difficult to accurately predict what a coinโs price will be in a few hours or a few days and even harder to give long-term estimates. As such, analysts and online forecasting sites can get their predictions wrong. We recommend that you always do your own research and consider the latest market trends, news, technical and fundamental analysis , and expert opinion before making any investment decisions. Be patient and look long term wisely and never invest more than you can afford to lose.
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