The big news around Stellar (XLM) is not the price, but the network outage that lasted for 60 minutes. This came after the SDF nodes went down, and since they are the ones that are trusted by a majority of the stellar validators, the entire network went down. This situation exposed the risks of centralization in the stellar network.
However, the SDF has taken this up proactively and is working towards a more decentralized node network. In fact, when this question was brought up on the stellar Reddit, a member of the SDF elaborated that they are working towards that direction. He stated that,
He further added that there will be a meeting either tomorrow, or on Monday to discuss this issue. This goes to show that the SDF the team is seriously working towards a more decentralized stellar network. The SDF member on reddit also gave an example of Satoshi Pay, as an example of the efforts towards a more decentralized Stellar. Part of the Satoshi Pay article read as follows:
“In January we launched three full validator nodes around the globe in the Stellar network and opened up our fast API for querying the ledger. Our motivation was not only to provide a solid base for the community and for SatoshiPay’s products. We also want to serve as a role model for how to run a validator in the Stellar network so others can build on our expertise and run their own validators…In the last 6 months, we have seen many new professionally maintained validator nodes join the network and others who improved their setup by publishing a history archive: LOBSTR, Coinqvest, Wirex, Sakkex, Eno, and there are more coming up.”
Clearly, the stellar team is taking the issue of decentralization seriously. It’s a good indicator that in the future, such issues won’t recur, and that Stellar will continue to grow in adoption as a secure and highly decentralized network.
This is a good reason to be bullish on Stellar, now that bulls are taking over the market. That’s because, it gives investors’ confidence that they are holding a valuable asset, one that is actively getting better in terms of security, and is growing in adoption. The Stellar network is growing in adoption in the finance industry, with use cases like the IBM blockchain world wire. As the adoption of this network continues to grow, the value of the stellar network will grow as well.
All these factors make Stellar (XLM) a highly undervalued crypto at current prices. Therefore, it is not surprising that as altcoins begin to gain bullish momentum, it is one of those gaining at a higher rate. This is in spite of the hiccup that exposed its centralized nature. As it becomes more decentralized, Stellar stands in a good position to retest its’ all-time highs. The future of Stellar (XLM) as an investment looks bright.