Stellar (XLM) has recently experienced a remarkable boom, outperforming many altcoins in the market. In a surprising turn of events, Stellar saw a staggering 17% increase in its value, giving investors and enthusiasts something to look forward to.
This increase comes as a breath of fresh air for the cryptocurrency community, which has been grappling with volatility and uncertainty in the past few weeks.
With a strong focus on scalability and accessibility, Stellar has earned a loyal following among individuals and organizations looking for effective and comprehensive financial solutions.
XLM up 17% in the weekly timeframe. Source: Coingecko
But what are the factors that contributed to this remarkable growth?
Market momentum, technological advances fuel the rise of the stars
The recent rally over the past seven days is not only a testament to the individual strength of the altcoin but also reflects the positive momentum of the broader market.
One of the factors contributing to Stellar’s rush is the constant stream of upgrades and aggressive developments being made by its developers. Known for its speed and scalability, Stellar’s blockchain technology is constantly improving, cementing its position as a reliable and efficient payment protocol.
XLAM market cap currently at $2.7 billion. Chart: TradingView.com
according to Post on Twitter by Timer Weller, which is the core developer of the Stellar protocol, developers now have the opportunity to use the recently introduced overlay protocol. This protocol brings significant scalability improvements to Stellar and enables efficient invocations of Soroban smart contracts.
If you’re building on Stellar, check this out. This small change to the overlay protocol will allow Stellar to scale significantly and enable efficient calls to Soroban smart nodes. https://t.co/oCVUaMv1qB
– Tomerweller June 27, 2023
Current XLM price on CoinGecko It stands at $0.100996. Despite a slight drop of 1.0% over the past 24 hours, the altcoin has seen an impressive 16.9% rally in the past seven days.
Stellar scalability upgrades open doors to expansion
Introduction of A new overlay protocol in the Stellar ecosystem, as Weller explained is a significant milestone for the blockchain platform. With this protocol implemented, Stellar can now achieve a higher level of scalability, unlocking new possibilities for scaling and improving smart contract functionality.
XLM price ascent in the last seven days. Source: CoinMarketCap
Scalability has always been a critical challenge for many blockchain networks, hampering their ability to handle a large volume of transactions quickly and efficiently. However, with the implementation of the overlay protocol, Stellar aims to overcome this hurdle and provide a scalable infrastructure that can meet the demands of a growing user base.
By optimizing the infrastructure, Stellar enhances its ability to process transactions at a faster rate while maintaining the security and reliability that the network is known for.
(The content of this website should not be interpreted as investment advice. Investing involves risk. When you invest, your capital is at risk).
Featured image by Robert Wiesen