Crypto winter has finally left the crypto markets. Not only the flagship Bitcoin is growing, but also various altcoins. In October-November 2023, the cost of Stellar increased 1.2 times.
Introducing a double reward to maintain openness
The Stellar team is trying to bet on openness. To this end, the developers decided to update the website of The Stellar Community Fund (SCF): now you can see all past projects there, as well as teams that have received awards. The changed interface allows you to attract more new users and encourage participation in management discussions. SCF itself is a reward distribution program for developers/startups on Stellar and the Soroban smart contract platform.
It's not all about updating the design. Two new types of rewards have been introduced: Activation award and Community award.. This innovation reflects Stellar's commitment to eliminating discrepancies between the review committee and community voting.
New awards system sets deadlines for applications. They must be done every four weeks. Thus, new projects will be able to claim an activation reward of up to $50,000 in XLM (Stellar's native token) for work completed within one to one and a half months. The platform also accepts applications for community rewards of up to $100,000 in XLM for development within two to three months. Their distribution is voted on by the community, and the final decision is made by a special commission.
Artificial intelligence bets on XLM
Since the beginning of November, there has been an increase in commissions on the Bitcoin network. At the maximum they reached over $15. Typically, such circumstances would cause increased demand for altcoins, where transactions are relatively cheap. Finbold specialists asked the AI neural network ChatGPT-4 for its opinion on this matter. One of the promising options turned out to be XLM. Here's how the neural network explains it:
“Stellar is another serious contender with low transaction fees. It is designed to help make fast and cheap cross-border payments. The fee set by Stellar per transaction is quite nominal at 0.00001 XLM. It allows you to get rid of spam, and for users it is insignificant. According to my data, fees currently amount to fractions of a cent, making Stellar a cost-effective option while maintaining network integrity and speeding up transaction confirmations.”
GhatGPT-4 sees Nano (XNO) and Ripple (XRP) cryptocurrencies as two other alternatives in November 2023. Interestingly, some Asian investors have shown solidarity with artificial intelligence.
Surge of interest in XLM in South Korea
On November 11, the South Korean exchange Upbit experienced unprecedented demand for altcoins for several hours.. One of them turned out to be Stellar. At one point, trading volume on the four-hour chart jumped to $33 million, beating the timeframe average by more than 130%.. Interestingly, at the same time there was increased activity on Binance. There, Stellar trading volume increased by 41.08%, from $19 million to $26 million.
Technical analysis
Since the beginning of 2023, the value of Stellar has increased by more than 75%. More than 20% occurred between October 12 and November 13. However, the annual maximum of $0.2 is still very far away – more than 61%. Recent successes have allowed Stellar to rise to 24th place in terms of market capitalization among all cryptocurrencies (about $3.5 billion).
Despite the fact that the overall trend for the cryptocurrency is bullish, in the short term, bears are likely to prevail among XLM investors. The first is supported by the fact that the price is above the 50-day moving average (indicated in blue), and the second is supported by the fact that the RSI indicator began to decline on November 6 (in fact, like the price). Further growth should be expected after breaking through the resistance level around $0.135. The support level is $0.119.
Source: tradingview.com
Interestingly, a crypto trader and investor known under the pseudonym Crypto Tony agrees with our point of view. He is waiting for the moment when the $0.135 level becomes support to enter the market. Here is the message Crypto Tony left on November 12th on X (formerly Twitter):
“Remember this legend. I'm waiting for the $0.135 support to flip to enter. One day XLM will go… We know XRP will also be there (will also start to grow).”
In short, one of the main advantages of Stellar compared to other altcoins could be cheap transactions. An advantage is the persistent continuation of project development by management. All this encourages a number of investors, and with it artificial intelligence, to believe in the potential of the cryptocurrency, and the XLM token to grow in price.
This material and the information contained herein do not constitute individual or other investment advice.. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.