Stellar (XLM) is one of the best chains when it comes to tokenization. However, it lags behind Securitize, Ondo Finance (ONDO), and Centrifuge (CFG), among others. They occupy the top three positions in terms of token market capitalization.
Despite being among the trending tokens, the price of XLM crypto has fallen by around 2.60% in the last 24 hours, trading at around $0.1830. Interestingly, its on-chain activity remains significant.
The influence of XLM tokenization on its on-chain activity
The tokenization narrative makes XLM crypto one of the most trending chains. The good news is that its fault tolerance and institutional trust have been improved. Indeed, MoneyGram, Figure and Range have become the level 1 validators of XLM.
On top of that, Stellar has partnered with DTCC to tokenize over $114 trillion worth of securities by 2027. Additionally, Tradable would transfer $1 billion in private credit through Stellar.
Both movements connect traditional finance (TradFi) and decentralized finance (DeFi), improving blockchain infrastructure in financial markets.
As such, it is expected to further increase the market capitalization of securities tokenized on XLM. At press time, that cap already exceeded $2.90 billion.
The tokenized stablecoin market cap on Stellar was over $689 million at press time. This showed that a lot of capital was flowing through the chain. This resulted in high network activity.
In fact, the number of transactions on XLM averaged 5.5 million per day. In total, over 37.9 million transactions were processed this week, boosting the use of the chain for tokenization.
XLM Price Prediction – Should Traders Buy?
Despite high network usage and a roadmap to tokenize $114 trillion worth of securities, the price of XLM is still lagging.
The altcoin has been consolidating in a symmetrical triangular pattern since the end of May. However, it is close to a breakout as it trades at the top of the pattern. The breakout is anticipated because contraction is usually followed by expansion.
This lag is due to capital outflows, with the money flow index (MFI) falling but above the neutral level. Additionally, the MACD shows that the bears are in control, even if their strength is minimal.
A breakout and holding above the trend would suggest that prices are likely to rise. On the other hand, a breakout would extend the bearish market structure in place since last August.
Final summary
- XLM Crypto partners with DTCC to tokenize $114 trillion as on-chain tokenization continues to grow and fuel network activity.
- XLM price action is trading inside a massive triangle where a breakout on either side would determine the altcoin’s next trajectory.
