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- Stellar fixed a bug with the network nodes by bringing them back into the services with a protocol upgrade.
- The CAS 38 proposal is ready for implementation with the update of Protocol 18, which improves liquidity with the AMM implementation.
At press time, Stellar’s XLM price is trading 5.5 percent higher despite the pressure on the entire cryptocurrency market. The price spike comes as the Stellar Development Foundation (SDF) informed the community of its accomplishments for the second quarter of 2021. The SDF mentions three important strategic pillars for the growth of the Stellar blockchain network.
- Supporting the ease of use and robustness of Stellar.
- Increase people’s trust in the Stellar blockchain.
- Develop sustainable Stellar use cases for cross-border payments and securitized assets.
In its Q2 report, SDF shares what they achieved in the last quarter compared to these three pillars. The Stellar blockchain had some test phases behind it as it was faced with technical headwinds in early April.
The Horizon API instance went down because validators were forced to temporarily stop the nodes. However, the validators managed to keep the network online. There were enough validators to process the transactions securely. At the same time, the engineering team brought new nodes and a new Horizon instance online. This was a real test for Stellar to demonstrate its power of decentralization.
Stellar’s network growth
The Stellar blockchain network saw strong growth in the direction of its robustness and ease of use. In the second quarter of 2021, the total number of accounts on the blockchain increased by 20 percent compared to the previous year. Likewise, total payments increased a staggering 160 percent and total transactions processed increased 173 percent. The average daily DEX volume also increased by 27 percent.
In addition, the relevant assets tied to financial instruments such as stocks and fats rose 58 percent year over year. As a result, the on-network transaction volumes for these relevant assets also increased by 760 percent compared to the previous year. On the other hand, XLM derivative products hit the market in the second quarter of 2021. In May 2021, listed bonds were introduced on the Stuttgart Stock Exchange.
Continue reading: Cardano and Stellar Exchange Traded Notes (ETNs) launched on the Stuttgart Stock Exchange
Excellent community financing for investments
At the beginning of the second quarter of 2021, the Stellar Community Fund Seed Round awarded 8 projects with $ 5 million in grants. At the end of June last month, a new SCF round went live, for which 40 projects applied.
In addition, SDF made two Enterprise Fund investments in Airtm and Tribal Credit in the last quarter totaling $ 18 million. Airtm’s investment alone was $ 15 million and was the foundation’s largest.
Protocol upgrade and network liquidity
After the failure in early April 2021 that disrupted the network nodes, the Foundation introduced two protocol upgrades. Protocol 16 helped all affected Validator nodes restore service. An interesting feature called Asset Clawback was introduced in Protocol 17. This enabled issuers of financial instruments to meet the regulatory requirements.
Additionally, SDF also noted that the CAP-38 proposal introducing Automated Market Makers (AMMs) onto the Stellar blockchain is ready to be implemented. The implementation takes place within the framework of protocol 18 and improves the liquidity of the Stellar blockchain. The report reads:
If validators vote to adopt the new CAP-38 protocol, users can create pools of liquidity that enable cheaper, faster, and more usable cross-asset payments and democratize market making by giving everyone the opportunity to participate in the provision of liquidity.
In a further development to interact with its community, SDF will release the Stellar Quest Series 3.