- Unique assets on the Stellar network with 38,276, over 6,000 assets added so far in September.
- The twenty-sixth cryptocurrency by market capitalization, XLM, has yet to recover from the September 7th crash.
- The total number of on-chain trades peaked in August 2021, indicating high growth in on-chain activity.
The fall in the price of Stellar tokens has been largely influenced by the crash of the entire cryptocurrency market. XLM is poised for a second leg as the network’s on-chain activity increases.
DEX trades and volume peaked on the Stellar Network in August 2021
Stellar Network’s XLM token gains were largely erased when the price collapsed in the September 7th crash. It is likely that the massive drop was due to the high correlation of Stellar tokens with top cryptocurrencies.
The XLM correlation with BTC, ETH, LTC and XRP is over 80% based on data from Cryptowatch, a premium trading terminal from Kraken.
XLM price saw a significant drop during the Flash crash, along with cryptocurrencies that ranked in the top ten based on market capitalization.
Despite increasing on-chain activities in the Stellar Network, the XLM price is still to come.
The total number of unique assets in the decentralized low cost remittance protocol is 38,276. Over 15% of these assets have been added since early September 2021. The addition of unique assets to the Stellar network implies that on-chain activity and transmissions over the protocol will increase.
Newly created assets in the Stellar Network.
Interestingly, the daily active accounts on the XLM network are increasing. Almost 62,762 accounts are active on the decentralized protocol based on data from Stellar Expert, a ledger explorer and an analytics platform for XLM.
Jason Chlipala, COO of the Stellar Development Foundation (SDF), the organization that supports the development of open source Stellar, said recently:
Although a major attraction for the blockchain may be its open, permissionless nature, some companies are [banks and financial institutions] want to work with a closed infrastructure.
By “open”, Chlipala meant that assets on Stellar should work seamlessly across chains.
Stellar’s token has offered moderately high risk-adjusted returns for the past week and the overall outlook for the token is bullish based on on-chain activity.
It remains to be seen whether XLM price will recover and continue its uptrend towards the 7-day high of $ 0.42.