Many factors influence the cryptocurrency market, and Stellar (XLM) is getting attention as a potential leader in the upcoming cycle. This article examines three key aspects that could contribute to significant price growth for XLM.
Soroban as a Key Factor
One of the most notable aspects mentioned by analyst Cody is Soroban - the Stellar smart contract platform launched in 2024. This upgrade finally allowed Stellar to support decentralized applications and DeFi tools, which it previously lacked. The Stellar Development Foundation backs this shift with a $100 million adoption fund to attract developers. Soroban allows the Stellar network to support features like tokenized assets, wallets, and oracles.
Increase in Institutional Trust
Another significant aspect is the rise in institutional trust. Cody points to Franklin Templeton as a prime example. They have launched a tokenized money market fund called Benji on the Stellar network, managing over $810 million in assets, with around $431 million sitting on Stellar. Other major players like IBM and Mastercard are also collaborating with Stellar, leading to a more resilient structure for XLM's price.
Expansion of Stellar’s Ecosystem
Cody also highlights how Stellar is expanding beyond its original remittance use case. For instance, the network is integrated with MoneyGram and has partnered with Circle to support USDC. Recently, PayPal joined the ecosystem, opening access to 180 countries. Nansen data shows active addresses grew from 65,000 to 80,000 in just one week, indicating increasing usage. Stellar has set targets to improve its position in DeFi, possibly leading to significant growth in its TVL.
According to analyst Cody, if the market trend continues, the price of XLM could surpass $1.50. With a functioning network, global partners, and the implementation of the Soroban product, Stellar is better positioned for growth compared to many other altcoins.
