The price of XLM, the cryptocurrency used on the Stellar blockchain, has recently increased despite a recent two-hour outage that impacted the blockchain, preventing users from transacting.
According to a Reddit thread, the outage occurred when the Stellar Development Foundation (SDF) validators went down. Each Stellar validator can choose which validators to trust, and the majority have chosen SDF, which has resulted in a certain degree of centralization.
After the failure of the SDF validators, the entire network could not reach a consensus and stopped processing transactions for security reasons. The reason why the nodes fail is not yet clear. Given the network’s temporary outage, some members of the Stellar community have called for a debate about its centralization in hopes of not having a single point of failure in the future.
Breaking: Yesterday the Stellar network was down for about 2 hours … only those who run validators noticed.
~ No new transactions were added for 2 hours.
Network statistics: https: //t.co/eSRYFPjDQi
– Tim Swanson (@ofnumbers) May 16, 2019
Despite the network outage, the cryptocurrency is currently up almost 25% in the past 24 hours, suggesting that users are still optimistic. In the context of its price action, Poloniex, a major cryptocurrency exchange, could announce support for stellar inflation premiums.
On the Stellar network, new XLM will be issued at a rate of 1% per year, and token holders who have 0.05% of the network votes will be rewarded with these tokens. One XLM corresponds to one vote. With Poloniex’s move, different users may have purchased tokens to take advantage of the rewards.
At press time, an XLM token retails for around $ 0.15, and the cryptocurrency has a market cap of $ 2.87 billion. Over the past two weeks, the price of XLM tokens has risen 48.1% as they have also accompanied the broader rally in the crypto market.
Interestingly, the XLM network went down around the same time that the Bitcoin Cash network faced a glitch where someone took advantage of a bug to get miners to mine empty blocks and stop processing transactions. The bug was fixed by the developers at BCH shortly after it was exploited.