Stellar (XLM) stole the market’s attention today with a 10% surge in just one day. This price action placed it firmly in the top three gainers.
According to data from CoinMarketCap, one of the main drivers was Visa’s decision to begin using the Stellar network to settle stablecoin transactions. This is no small step. This integration is a strong signal that major players are re-evaluating the potential of the once-forgotten network.
Furthermore, market sentiment is improving ahead of the mainnet vote for Protocol 23 on August 14th, a major update that promises faster smart contracts and a transaction system that can process transactions in parallel.
XLM briefly touched $0.46 after rising from $0.22 during July and is currently consolidating in a bullish flag pattern that is said to have significant potential for another explosive rise. On-chain analyst Ali Martinez observes that if the price breaks through $0.50, the next target is in the $0.62 to $0.80 range.
However, not all indicators are aligned. XLM’s RSI is currently at 53.53, which is fairly neutral. The MACD also continues to signal a bearish crossover, although it is approaching a re-intersection.
Stellar grows as smart contracts and stablecoins surge
Meanwhile, data from the Stellar Development Foundation shows a sevenfold surge in Soroban-based smart contract activity during the second quarter of this year. A $100 million fund has been set aside to support developers. This is an uplifting moment for an ecosystem seeking to grow beyond just asset transfers.
Furthermore, stablecoin adoption has also surged. USDC transactions on the Stellar network have now reached a market capitalization of $353 million. Therefore, XLM is increasingly in demand as a liquidity bridge, especially for cross-chain transactions.
Interestingly, before the Visa news broke, Stellar had already attracted institutional attention through Franklin Templeton’s $446 million US bond tokenization project. This project served as a preview that the network was quietly returning to the mainstream RWA tokenization path.
With these various factors converging, it’s no surprise that XLM is one of the fastest-rising altcoins today.