The Stellar (XLM) ecosystem is growing exponentially. A few days ago news broke that Robinhood would be tokenizing on stellar. Now some more good news are coming up. Anchor USD, a stable coin that is backed 1-to -1 by the USD is building on stellar. The stable coin that is backed by Y-Combinator will have an edge over other stable coin because all its accounts will be in the U.S.
It will also have regular audits, which means that investors can be sure of the security of their funds. This stable coin comes closely after the launch of another stable coin, the white standard (WSD), which has also launched on the stellar network. It is backed by the white company a company that is launching stable coins in the stellar ecosystem not just for USD, but also the EURO and the GBP as well.
The good news for stellar investors is that these stable coins add to the overall usage of the stellar network, and the fees generated on the stellar network are redistributed to stellar (XLM) holders, further adding to the intrinsic value of Stellar (XLM). Besides, such moves on the stellar network, will serve to draw in other players to build on stellar too, and further drive up the value of stellar (XLM) in the long-run. Soon, there will be loads of stable coins running on the stellar network.
It’s the same thing that is happening with asset tokenization. Since the launch of the DSTOQ exchange that opened up the whole idea of asset tokenization on stellar, the stellar network is slowly shaping up as the network of choice for asset tokenization. Back to stable coins, the more stable coins launch on stellar, the better for the crypto ecosystem as a whole. That’s because an over-reliance on tether (USDT) can harm crypto in case anything ever happens to tether. With more stable coins, tether’s effect on the market, would be minimal, in case of any eventualities.
With all these good news, how is Stellar (XLM) performing in intra-day trading? In the day, stellar is mildly bullish, though market volumes are quite low. This can be attributed to the fact that it’s Friday and most traders are folding up for the weekend. In the 1 hour chart, Stellar has broken above the 55 and the 100 day moving average. This is an indicator that even though market volumes are low, bulls are in control of the stellar (XLM). This is quite expected given all the good news that have come stellar (XLM)’s way in the last few days.
For short-term traders, a long entry into XLM should be premised on it breaking above the 200-day moving average at $0.22. If it breaks above this level, a long entry would be ideal, with a target of $0.23. If it fails to rise above this price, then it could range around $0.215 and $0.22 going into the weekend. A break below $0.22 could see it drop to $0.20.