Stellar (XLM) Is Bullish – Announces Entry To Smart Contracts

By Kevin • January 28, 2022 9:49 am • Comments

On January 25, the Stellar Development Foundation announced via the Twitter that the company plans to integrate smart contracts into the Stellar network sometime this year.

Currently, the integration has a tentative date is set by the end of 2022 and will allow for a complete transformation of the Stellar network by expanding what the blockchain is able to do.

The company ensures that this change has always been a core part of why Stellar was developed and can be seen as more of an enhancement of what Stellar is built to do.

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FxEmpire reports:

While the network’s goal to remain one of the most accessible networks for developers stays intact the integration of smart contracts would allow the blockchain to ‘adapt and respond to the competitive blockchain landscape.’

The blog post further clarified:

“Bringing smart contracts to Stellar is not a departure from the values or vision of the network. Since the Stellar network was built for the future of payments, it’s critical that smart contracts on Stellar are secure for users and can scale without exorbitant network fees.”

That said, Stellar’s VP of Tech Strategy, Tomer Weller, spoke about Stellar’s DeFi ecosystem underling that DeFi is becoming a major part of that system and that ‘it has been core to the protocol with a built-in DEX from the get-go, and AMM functionality became available in ‘21.’

In terms of what this means for users, it enhances decentralized finance on Stellar and the integration will benefit users the most out of everyone else.

Stellar’s announcement to bring smart contracts to the table makes the blockchain network comparable to the likes of Cardano and Solana which are also networks that are smart contract platforms.

These smart contract platforms were some of the biggest winners last year out of all the cryptocurrencies that had seen explosive growth in the market where investors saw triple digit gains.

Market reaction shows that smart contract capabilities, therefore, are highly in demand which is good news for XLM holders.

XLM has also been compared frequently with Ripple.

Yahoo reports:

XLM has often been compared with XRP owing to the two assets’ similar use cases and while it doesn’t directly put the two assets in a race it’s enough to drive comparative narratives in the market.

That said, Jed McCaleb, the co-founder, and CTO of Stellar who was also the founder and CTO of Ripple until 2014 establishes more common ground between the two projects.

With XLM’s entry in the smart contract space, the same put the asset in competition with top smart contract platforms like Ethereum, Solana, Cardano, among others. For now, with the larger market looking bleak after BTC fell by 3.45% back to $36,664 at press time XLM’s trajectory too looked relatively weak.

The company also scored a deal with MoneyGram where the collaboration would allow for crypto-to-cash conversions in over 300,000 locations around the world.

With these two major announcements which include smart contract integration and a MoneyGram partnership, investors are optimistic to see similar gains as last year as it directly competes with Ethereum, Cardano, and other smart contract platforms.

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