XLM About To Breakout As Stellar Launches Ethereum Bridge• March 25, 2022 8:53 pm • Comments
The price of XLM is looking likely for a rally as the Stellar network is just recently announced the launch of a bridge that will connect it to the Ethereum ecosystem called project Starbridge.
With this bridge, users will be able to move their digital assets between the two blockchain ecosystems and the two ecosystems will mutually benefit each other with this new access.
For XLM specifically, Stellar will now also be able to access projects on the Ethereum network which will expand Stellar’s focus within the decentralized finance (DeFi) space as Ethereum currently has a majority of the market share in the sector today.
As a result, the bridge is expected to boost XLM’s utility as a token as it will play a role now on the DeFi projects on the blockchain.
— Stellar Network News (XLM) (@Stellar_News_) March 25, 2022
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.
So far, the XLM price has been recorded to increase around 15% in just the span of one week indicating bullish sentiment among investors.
This was quite welcomed as XLM has had an overall bearish trend for a very lengthy period of time which started around May 2021.
During the time, there were multiple bullish rallies, but the overall trend had remained the same.
The price is approaching a major resistance zone which could determine the overall direction in the short term and a break of this resistance could mean further upside.
Recent news about the continued expansion of the crypto market may eventually also lead the overall market into a broader recovery from the overall bear trend that started at the beginning of this year.
— Critical Crypto Collective (@CriticalCryptoC) March 25, 2022
Stellar Lumens has seen steady demand in recent days.
Interestingly, despite the bullish advance, trading volume and transactions count (daily basis) has remained pretty much unchanged in the past month, according to data from Messari.
What, then, explains the recent gains? Price action tells a story of its own, and at press time, Stellar Lumens could be attracted toward a zone of liquidity in the days/weeks to come.
How much higher, though, for XLM? The $0.23, $0.25, and $0.3 are places where long positions can look to sell with the $0.238-$0.257 (red box) being an area of extra significance.
At press time, a bullish bias for Stellar Lumens was warranted.
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