|

XLM price prepares to breakout as Stellar breaks into DeFi through Ethereum bridge

  • XLM price has posted double-digit gains over the past week as the altcoin prepares to break into Ethereum’s DeFi ecosystem. 
  • Stellar announced the launch of Starbridge, a project that allows users to transfer assets between XLM and the Ethereum network. 
  • XLM adoption is on the rise as Stellar-backed Velo Protocol and Philippine Digital Asset Exchange announced a new partnership. 

XLM price prepares for a rally as the project announces the launch of Starbridge, a bridge that connects Stellar to the Ethereum networks. Users will be able to exchange value between the two networks. Starbridge will connect users to DeFi projects and assets on the Ethereum network. 

XLM price posts 15% gains within a week

XLM price rally could continue as the Stellar Lumens network announced the launch of a project to connect investors to the DeFi ecosystem on the Ethereum network. There is a massive spike in the adoption and utility of DeFi tokens on the Ethereum blockchain network; therefore, Stellar’s new project could boost the altcoin’s utility and drive its demand higher. 

Starbridge is a link between the Stellar blockchain and the Ethereum network. A wide variety of financial systems have used Stellar as an anchor; these assets can be redeemed off-network in exchange for fiat currencies. Users would now have the option to transfer value from and to the Ethereum network. 

Starbridge will transfer two types of assets to facilitate bidirectional transactions, local assets and wrapped assets. When a local asset is deposited on the Stellar blockchain, it will be locked up in a contract, with a group of Starbridge operators controlling the account. 

Through multiple operations, the network will ensure decentralization and a unique key provided to each operator. 

The bridge’s design will allow the reversal of transactions that remain incomplete or unsuccessful. The team behind Stellar Lumens revealed that Starbridge is in the early stages of its development and is expected to cement XLM’s role in the global financial system. 

Analysts believe XLM prices could continue to climb in response to the recent developments. Analysts evaluated the daily price chart and predicted a rally to $0.49 as XLM continues its uptrend. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

More from Ekta Mourya
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Ripple faces persistent bear risks, shrugging off ETF inflows

Ripple is extending its decline for the second consecutive day, trading at $2.06 at the time of writing on Friday. Sentiment surrounding the cross-border remittance token continues to lag despite steady inflows into XRP spot ETFs. 

Luna Classic soars 20% as Do Kwon's sentence hearing looms

Luna Classic surges 20% on Friday, extending its recovery for the fourth consecutive day. Roughly 959 million tokens have been burned in December so far, fueling LUNC's recovery.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000. 

Ethereum strengthens against BTC post-Fusaka, targeting $3,200 breakout

Ethereum trades above $3,100 on Friday, with bulls aiming for a breakout above a two-month-old resistance trendline. Ethereum gains strength against Bitcoin as demand for the major altcoin increases after the Fusaka upgrade.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: BTC steadies as data suggests local bottom

Bitcoin (BTC) hovers around $91,000 at the time of writing on Friday, extending its recovery by 5% so far this week. On the institutional front, a modest outflow from US-listed spot Bitcoin Exchange Traded Funds (ETFs) marks a slowdown from previous weeks and signals a reduction in selling pressure, further supporting BTC’s recovery.