XLM Price Surges 25% Despite Stellar Network Going Down for Two Hours

The price of XLM, the cryptocurrency used on the Stellar blockchain, has recently started surging, despite a recent two-hour failure that affected its blockchain, in which users weren’t able to transact.

According to a Reddit thread, the outage occurred as Stellar Development Foundation (SDF) validators went down. Every Stellar validator can choose which validators to trust, and the majority have gone with SDF, leading to a certain level of centralization.

Once the SDF validators went down, the whole network wasn’t able to reach consensus and, as a security measure, stopped processing transactions. The reason the nodes to go down isn’t yet clear. Given the network’s temporary failure, some in the Stellar community have called for a debate on its centralization, hoping to avoid having a single point of failure in the future.

Despite the network’s failure, the cryptocurrency is currently up by nearly 25% in the last 24-hour period, suggesting users are still bullish on it. Related to its price performance could be Poloniex, a major cryptocurrency exchange, announcing support for Stellar inflation rewards.

On the Stellar network, new XLM is issued at a rate of 1% a year, and token holders who have over 0.05% of network votes are rewarded with those tokens. One XLM is the equivalent of one vote. Poloniex’s move could’ve seen various users buy tokens to take advantage of the rewards.

At press time, one XLM token is trading at about $0.15,  and the cryptocurrency has a market cap of $2.87 billion. In the last two weeks, XLM tokens have seen their price rise by 48.1% as they’ve also been accompanying the wider crypto market rally.

Interestingly, XLM’s network went down at about the same time the Bitcoin Cash network faced a glitch, that saw someone take advantage of a bug to get miners to mine empty blocks, stopping transactions from being processed. The bug was fixed by BCH’s developers soon after being exploited.

PayPal is Cautiously Optimistic About Partnership with Libra Association

  • PayPal cautious about future with Facebook's digital currency libra. 
  • Payment platform was one of the first companies to join and support the Libra Association.

Payment platform PayPal is cautiously optimistic about its relationship with Facebook’s digital currency libra, despite being the highest-profile company to join the Libra Association. 

PayPal Backs Libra Association

In June, shortly after the official unveiling of Facebook’s libra, PayPal announced an intention to join and support the Libra Association, a collection of tech and finance companies promoting the product. 

At the time, PayPal billed the digital currency as a revolutionary product for people around the world, 

We believe in democratizing participation in the digital economy for people from all walks of life, and businesses of all sizes.

However, PayPal appears cautious about its future with Facebook’s digital currency. PayPal investor relations vice president Gabrielle Rabinovitch reiterated Sept. 12 that the company is a non-binding agreement with libra, 

It's a non-binding commitment. And obviously, I think there's a lot of work to happen before we get to that point where it becomes something more than just a very exciting idea.

She added, 

The goals and ambitions of Libra are very consistent with PayPal's overall ambitions in terms of serving the underserved; democratizing access to capital. So we very much believe in the potential of Libra.

While PayPal appears optimistic about the future of libra, the digital currency has endured months of regulatory and political scrutiny concerning its release. 

Earlier in the week, senior U.S. Treasury official Sigal Mandelker told an audience in Geneva that libra would be held to the highest standard of regulatory compliance in order to combat money laundering and terrorist funding.

 

Featured Image Credit: Photo via Pixabay.com