XLM Breaks Past $0.23 Mark With Launch Of New Remittance Corridor

March 29, 2022 5:32 pm Comments

The recent XLM rally is still going strong and has recently recorded gains of over 10% in a single night which has allowed the digital asset to break past the 23 cents mark.

This indicates that there is still strength to the rally as XLM had already gained around 20% in value in the past week and has now clearly broken the existing bear trend.

The recent strength in price movement could be attributed to the newly revealed partnership between Stellar-backed Velo Labs and the Philippine Digital Asset Exchange (PDAX).

This new partnership involves the launch of a new remittance corridor which will accelerate adoption of XLM in the region of Southeast Asia which has been marked as a high-growth potential region for crypto.

FXStreet reports:

In a recent release, Stellar-backed Velo Labs and Philippine Digital Asset Exchange (PDAX) have announced a new partnership for the launch of a remittance corridor. Velo Labs is a leader in remittance and money transfer in Southeast Asia.

Proponents believe the new partnership is likely to drive the adoption of XLM higher. The new corridor in the Philippines would be powered by the Stellar network, enabling investors to buy and sell cryptocurrencies through the digital asset exchange PDAX.

The Stellar Consensus Protocol layer would process and settle transactions and enable remittances.

Recently, the Stellar Development Foundation had announced the launch of a fund to fuel projects that build on the network.

This could increase the utility of XLM in the future, creating demand for dApps and blockchain-based solutions powered by the altcoin’s network.

To give more context on this recent development, Stellar-backed Velo Labs is one of the major players when it comes to remittance and money transfer services in Southeast Asia.

PDAX is also the top digital asset exchange in the Philippines  that dominates the local region in the same way that Coinbase dominates the North American market share.

As a result, the partnership would represent a significant boost in the utilization in XLM which would encourage the use of XLM as the digital asset of choice to issue assets and settle payments.

Other news that may have contributed to XLM’s recent price surge could also be attributed to the merge between Velo Labs and Interstellar and multiple other developments that have all occurred in the past few weeks.

U.Today reports:

The Stellar Development Foundation announced the launch of a $30 million matching fund to support blockchain-based start-ups a couple of weeks ago. The initial investments will support global payroll, remittance, NFT and cross-border solutions.

The fund was established by SDF to offer more early-stage startups with capital to help them expand and develop blockchain-based solutions.

This is especially important in markets where venture ecosystems are underdeveloped, especially when compared to demand for funding from entrepreneurs developing financial services solutions.

The Stellar network, which already has over six million accounts, is reportedly used by several financial institutions around the world to issue assets and settle payments.

As of now, analysts are reporting that XLM’s recent breakout past $0.23 will indicate that it will reach the next resistance point likely at $0.26.

A break past that point would mean that the XLM uptrend would likely continue for the next three months with upside to around twice its current price.

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