Stellar (XLM) is among the best chains in terms of tokenization. However, it lags behind Securitize, Ondo Finance (ONDO) and Centrifuge (CFG), among others. They rank in the top three in terms of tokenized market cap.
Although it is among the trending tokens, the price of XLM cryptocurrency traded around $ 0.1830, decreasing by approximately 2.60% in the last 24 hours. Interestingly, its chain activity is still quite large.
Tokenization impact of XLM on chain activity
The tokenization narrative makes XLM crypto one of the trendiest chains. The good news is that fault tolerance and organizational trust have increased. This is because MoneyGram, Figure, and Range have become tier 1 validators of XLM.
Moreover, Stellar has partnered with DTCC to tokenize more than $114 trillion in securities by 2027. Additionally, Tradable will transfer $1 billion in private credit through Stellar.
Both moves strengthen the blockchain infrastructure in financial markets by bridging traditional finance (TradFi) and decentralized finance (DeFi).
Therefore, the market value of securities tokenized in XLM is expected to increase further. At the time of writing this news, this limit had already exceeded $2.90 billion.
The tokenized stablecoin market cap on Stellar was over $689 million at the time of writing. This showed that a large amount of capital was moving along the chain. This resulted in high network activity.
In fact, the number of transactions on XLM averaged 5.5 million per day. In total, more than 37.9 million transactions were processed this week, strengthening the use of the chain for tokenization purposes.
XLM price prediction – Should traders buy?
Despite high network usage and a roadmap to tokenize $114 trillion worth of securities, XLM’s price is still lagging behind.
The altcoin has been consolidating in a symmetrical triangle pattern since late May. However, since it is trading at the top of the formation, it is approaching a breakout. A breakout is expected because contraction is usually followed by expansion.
The delay is a result of capital outflow as the Money Flow Index (MFI) falls but is above the neutral level. Moreover, the MACD shows that the bears remain in control, although their strength is minimal.
A breakout and hold above the formation indicates that prices are likely to increase. On the other hand, a breakout would prolong the bearish market structure that has existed since last August.
Final Summary
- XLM cryptocurrency is partnering with DTCC to tokenize $114 trillion as on-chain tokenization continues to grow and increase network efficiency.
- XLM price action is trading within a massive triangle pattern where a breakout on either side will determine the altcoin’s next trajectory.
