Lumens (XLM) token price jumped high as the Stellar Foundation decided to burn almost half of its total XLM supply.
During the Stellar Meridian conference on Monday, November 4, the Stellar Development Foundation CEO Denelle Dixon disclosed that they have burned 55 billion Lumens (XLM) tokens which is half of the overall cryptocurrency supply.
Earlier there were a total of 105 billion tokens of which 20 billion were in circulation. With the recent burning, the total supply has reduced to only 50 billion XLM tokens. In its latest Medium blog post, the Stellar Foundation noted that token burning was part of the company’s effort to become more efficient as it moves forward. The Stellar Foundation wrote:
“SDF can be leaner and do the work it was created to do using fewer lumens. Over the years we’ve also seen that giveaways and airdrops have diminishing effects, especially in the outsized amounts our original plan was designed to support. So a smaller public-facing program would have just as much impact.”
Speaking to the attendees during the conference about the decision to burn XLM tokens, Dixon explained:
“We didn’t start by wanting to burn. We started by asking, ‘What do we need? As much as we wanted to use the lumens that we held, it was very hard to get them into the market.”
Dixon further added that instead of deciding on an arbitrary number to burn the XLM tokens, the Stellar Foundation decided to properly calibrate on the XLM tokens it can use for the next decade. The blog post mentions that the SDF will use a majority of the remaining funds to upgrade the Stellar blockchain network, create several use-cases for the XLM tokens, support network partnerships, and other things.
Stellar’s XLM Kitty And Market Reaction
After the latest burning, the SDF controls over 30 billion XLM tokens, of this, 12 billion tokens are allocated in the direct development fund which supports the growth of the organization. The Stellar Foundation has kept 10 billion XLM tokens aside to make important investments whereas 2 billion tokens are kept for the “ecosystem support”.
Popular Twitter account Whale Alert has mentioned all the massive XLM token transfers.
Speaking about how the market will react to the XLM burning decision, Dixon told CoinDesk:
“I don’t know. I really just don’t have a sense at all of what the market response is. From my standpoint, it’s how the ecosystem feels about it. We got a lot of positive response from the ecosystem because we are rightsizing what the foundation has and the foundation holds.”
But it looks like the XLM token burning has resulted in better performance of the token (+approximately 27% after the announcement). At press time, XLM is up over 14% in the last 24 hours and is currently trading at $0.078 with a market cap of $1.5 billion.
But if the growth of XLM price now is explainable, what is the growth of XRP related to? It was noted that the coin started growing just after the announcement from SDF. Though now it is trading for $0.29, after the announcement its price surged to $0.305 practically immediately (+approximately 4% within 24 hours). It is sais that such a move may be related to the upcoming Ripple Swell conference that is scheduled to take place later this week.
News Today and Headlines for Stellar Lumens – February 18-2020
- Stellar Development Foundation is now a part of the Blockchain Association
- The Blockchain Association is Devoted to promoting crypto
- BA lobby’s for policymakers to reduce their strict regulation of the asset class
Stellar Lumens News Today – the Stellar Development Foundation, announced last week that it has become a member of the Blockchain Association. The Blockchain Association is an industry trade and lobbying movement that includes the biggest players in the crypto space, including Coinbase, Ripple, and Kraken to name a few. The Blockchain Association is devoted to spreading the crypto gospel to Congress and US regulators. The goal is to make sure that the Blockchain industry thrives in the United States.
Stellar (XLM) Price Today – XLM / USD
The Blockchain Association was Behind Advancing the Token Taxonomy Act
One of the big issues that the Blockchain Association faced last year was pushing the “The Token Taxonomy Act” forward. The act is aimed at excluding cryptocurrencies from been classified as a securities offering. The Blockchain Association is one of 40 different groups that are currently lobbying on behalf of the Blockchain and crypto initiatives per data from CQ Roll Call, a website dedicated to reports on Congress. These groups spent a total of $42 million lobbying Congress in quarter one of 2019.
By teaming up with SDF, the Blockchain Association will be able to leverage Stellar’s expertise to highlight the potential of Blockchain technology in their discussions with policymakers. Candace Kelly, Stellar’s general counsel, echoed this sentiment via a blog post that came with the announcement of SDF joining the Blockchain Association. Kelly said the Blockchain Association, represents a unified voice, that is fostering important conversations to educate policymakers on the advantages of the Blockchain.”
The U.S will be Left Behind in Blockchain Technology if Nothing is Done Soon
Lobbying groups like the Blockchain Association is designed to try to push US lawmakers to act fast on the Blockchain technology and crypto space as well as reduce some restrictions if the country is to rival economies like China and be a leader in the crypto space.
China is moving fast in the Blockchain space. The country has been working on the development of a state-backed digital asset. The Chinese government has expressed its support for the Blockchain industry. Now, many players in the US Blockchain industry are fighting to make sure that America isn’t left behind.
Recently, the United States government has expressed fear of cryptocurrency claiming that the asset class is disrupting the dominance of USD. Now the Trump Administration is preparing to release fresh crypto laws. While Washington’s discussions on Blockchain technology continue to mature, many in the country will continue to focus on Blockchain’s well-publicized and overblown negative uses.
Whether Congress is prepared to give in to the demands of lobbyists or not may potentially determine whether the US can catch its international rivals in the race to become number one in the Blockchain space.
Stellar Lumen (XLM) Price Nosedives Below $0.075, More Losses Possible
- Stellar lumen price topped near the $0.0888 area and declined heavily against the US Dollar.
- XLM price broke a few key supports near $0.0800 to enter a bearish zone.
- There was a break below a major bullish trend line with support near $0.0752 on the 4-hours chart (data feed via Kraken).
- The pair even broke the $0.0700 support area and it is currently consolidating losses.
Stellar lumen price is trading in a bearish zone against the US Dollar and bitcoin. XLM could continue to move down if it fails to recover back above $0.0780.
Stellar Lumen Price Analysis (XLM to USD)
After a strong upward move, stellar lumen price failed to continue higher above the $0.0888 level against the US Dollar. The XLM/USD pair formed a short term top and recently started a sharp decline below $0.0800.
There was a break below the $0.0780 support area and the 55 simple moving average (4-hours). It opened the doors for more losses and the price even broke the $0.0700 support area.
A swing low is formed near $0.0669 and the price is currently consolidating losses. An initial resistance is near the $0.0720 level. It coincides with the 23.6% Fibonacci retracement level of the recent decline from the $0.0888 high to $0.0669 low.
Besides, the broken bullish trend line might act as a key hurdle for the bulls near the $0.0750 level. The next resistance is seen near the $0.0760 level and the 55 simple moving average (4-hours).
To move into a positive zone, stellar price must move back above the $0.0780 and $0.0800 resistance levels. The 50% Fibonacci retracement level of the recent decline from the $0.0888 high to $0.0669 low is also near the $0.0780 level.
If not, the price is likely to continue lower below the $0.0700 and $0.0680 levels. On the downside, the first key support is seen near the $0.0650 level. If the bulls fail to defend the $0.0650 support, there is a risk of a larger decline below the $0.0620 support area in the near term.
Stellar Lumen Price
The chart indicates that XLM price is back in a negative zone below the $0.0750 level. If there is a clear break below the $0.0650, the bears are likely to take control. They might even target a test of the $0.0600 zone in the coming sessions.
4 hours MACD – The MACD for XLM/USD is currently losing momentum in the bearish zone.
4 hours RSI – The RSI for XLM/USD is now well below the 50 level.
Key Support Levels – $0.0680 and $0.0650.
Key Resistance Levels – $0.0760, $0.0780 and $0.0800.
Stellar Price Analysis: XLM/USD is looking to test a key resistance zone
- XLM is trading 4.24% higher on another good day for cryptos.
- XLM/USD is now headed toward a key level and if it breaks the sky is the limit.
XLM/USD Daily Chart
Stellar is looking up on Friday trading over 4% higher.
The XLM/USD pair is now headed to an important resistance zone at 0.08990.
This would be an important break out as the next resistance is much higher up.
If the level fails to breaks, then 0.0650 could be the next support although it’s pretty far out.