Stellar Makes Progress On Roadmap, Why XLM’s Price Lags Behind?
27 July 2022 - 12:56AM
NEWSBTC
Stellar (XLM) has been following the general sentiment in the
market and trending to the downside in the last 24 hours. Bitcoin,
Ethereum, and other larger cryptocurrencies were rejected at
critical resistance levels and now seem poised to push the sector
into support. At the same time, the Stellar Development Foundation
(SDF) published its Q2, 2022, report celebrating “steady progress
on its 2022 roadmap”. The non-profit organization claims the
network has experienced improvements in terms of scalability,
demand, and participation. One of this quarter’s major milestones
is Project Jump Cannon which is set to provide Stellar with a
“robust execution environment for smart contracts”. In January,
this network announced the implementation of smart contracts with a
tentative launch date set for December 2022. The announcement was
made by Tomer Weller, Vice President of Technological Strategy at
the SDF, who has been supervising the implementation of these
capabilities with WebAssembly (WASM) runtime. The SDF claims WASM
will provide its smart contracts with a secure, scalable, and
easily accessible environment. In addition, the SDF claimed the
network has benefited from the introduction of Protocol 19. This
update facilitates the “creation of payment channels” or
second-layer payment solutions that support “high-throughput use
cases”, the report claims. The Stellar network also expanded its
ecosystem in Q2, 2022, with the deployment of MoneyGram Access.
Global crypto to fiat on/off ramp financial service that allows
MoneyGram customers to send and receive remittances without the
high cost of using legacy payment rails. The SDF has been
consolidating major partnerships with international exchange
platforms, such as with CoinMe and Mercado Bitcoin. The
organization also announced that Novatti will deploy a digital
version of the Australian Dollar (AUD) on the Stellar network.
Stellar Faces Macro-Economic Headwinds Despite the network updates,
partnerships, and use cases, Stellar (XLM) is reacting to the
macro-economic environment. The milestones announced by the SDF are
counterweighted by a global economic environment of high inflation,
interest rates hike, and less liquidity across global markets. On
short timeframes, XLM’s price records important support below its
current levels. Data from Material Indicators shows there are
around $1 million in bid orders waiting to potentially operate as
support if the price of XLM continues to move to the downside.
Material Indicators record an increase in buying pressure from
small investors. Unless larger investors jump into the market with
bid orders, this trend suggests a potential re-test of lower
levels. XLM’s price and the crypto market could see a push to the
upside if U.S. public companies’ earnings season contributes by
showing positive results, Director of Macro for investment firm
Fidelity Jurrien Timmer hinted at that possibility. Q2 earnings are
encouraging so far, but remember, we have 9% inflation, and
earnings are generally considered in nominal terms. So there is
less than meets the eye here. Expected earnings growth for 2022
remains at +10%, but without the energy sector, it’s only +4.3%.
pic.twitter.com/HLSIfjWGoC — Jurrien Timmer (@TimmerFidelity) July
26, 2022 SDF’s report hints at long-term appreciation for Stellar
and its native token, but current macro-conditions are unfavorable.
If XLM and major cryptocurrencies can preserve their current levels
beyond this week, that could be a potential sign of a sustainable
bullish price action.
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