XLM Price Surges 10% After Smart Contract Platform “Soroban” Launches

By Kevin • August 7, 2022 7:27 pm • Comments

The Stellar Development Foundation just revealed the launch of their new smart contract platform called “Soroban” which has been highly anticipated by all XLM users.

Reacting to this news, the price of XLM has already surged by around 10% indicating that this could be the catalyst for a new bull rally.

This new platform was initially developed as part of an initiative that is called “Project Jump Cannon” and the company has already started to invite smart contract developers onto this new platform.

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It is expected that this will help drive more growth within the Stellar ecosystem as the number of use cases on the Stellar blockchain will increase tremendously with this new platform.

As a result, this will also likely drive even further mainstream adoption as the XLM ecosystem becomes extremely competitive against other smart contract platforms such as Ethereum.

NewsBTC.org reports:

Per an official post, Stellar’s smart contracts follow the project vision of providing users with an accessible, user-friendly, and scalable platform.

The team behind the project claims Soroban has the potential to become the “standard for smart contracts” in the crypto industry.

The Stellar Development Foundation (SDF) claims that the crypto space lacks a smart contract platform with the above-mentioned features. Most “present too many foot guns for developers”. The SDF said the following on the preview for their smart contract platforms:

We’re doing it because we believe that we’re building something special with Soroban, and true to our open-source roots, we believe it’s important to share the development process.

We want Stellar ecosystem developers and smart contract developers from other ecosystems to have a chance to make a meaningful impact together.

The new platform Soroban will be operating independently from Stellar but users that are already within the Stellar ecosystem will have easy access to the platform.

The point of this is to ensure that all users within the Stellar ecosystem will be able to take advantage of the new smart contract platform as well as making sure that the Soroban users will have access to Stellar’s decentralized finance (DeFi) infrastructure.

At the time of writing, the price of XLM is recorded at $0.11 and the overall crypto market also seems to be recovering as well from its recent lows.

The additional launch of Soroban on the mainnet could then lead to an upward trend forming for XLM  provided that the overall market holds support.

NewsBTC.org reports:

In the short term, XLM records an increase in buying pressure since August 2nd which suggests investors were swayed by SDF’s claims over the future of their smart contract platform.

This could remain a critical bullish factor for the long term if the organization is able to launch Soroban on mainnet.

Data provided by Material Indicators (MI) records an uptick in ask (sell) orders as XLM’s price trends to the upside. As seen below, there are around $1 million in asks orders above XLM’s price current levels with an uptick in buying pressure from retail investors.

Stellar’s bid liquidity seems to be getting thinner which could suggest a potential re-test of previous support levels. This could be invalidated if Bitcoin and other large cryptocurrencies keep pushing the crypto market to the upside. In that case, XLM’s price could break resistance and hit $0.18.

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