Stellar Lumens Testnet Advances to Protocol 21: Implications for XLM Price?

15 May 2024

in XLM

Reading Time: 3 mins read

Stellar’s Testnet has advanced to Protocol 21, enhancing its smart contract capabilities.
This upgrade could significantly impact XLM’s price, especially in the Decentralized Finance (DeFi) sector.

On June 18, 2024, validators of the Stellar public network will decide on an essential upgrade to Protocol 21. If approved, this will activate five new Core Advancement Proposals (CAPs) on Stellar’s Mainnet. Currently, the Stellar Testnet has already transitioned to Protocol 21, a crucial development for enabling smart contracts and a key milestone in the network’s continuous evolution. This upgrade follows a structured roadmap with critical dates set for May 30, June 11, and June 18, each marking significant stages in the network’s development.

Advancing Stellar’s Network and Smart Contract Capabilities

As revealed in a recent CNF YouTube video, the successful implementation of Protocol 21 could profoundly influence Stellar’s native asset, XLM, particularly within the burgeoning DeFi landscape.

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Despite the current market position of XLM trading at $0.103, down by 1.33%, the anticipated long-term benefits of these upgrades look promising.

According to a recent tweet from Stellar, the Stellar Testnet has been upgraded to Protocol 21. Here’s what comes next.

Network update: the Stellar Testnet has been upgraded to Protocol 21. Here’s what comes next:

▪️ May 30: Stable releases of Stellar Core, Horizon, RPC
▪️ June 11: Testnet reset
▪️ June 18: Mainnet upgrade vote

Check the Protocol 21 Upgrade Guide for the most up-to-date…

— Stellar (@StellarOrg) May 14, 2024

Stellar is positioning itself alongside other major protocols like Filecoin, EOS, and Chainlink by integrating smart contract functionality and aligning with the evolving Web3 ecosystem.

Upcoming milestones for the Stellar network include:

May 30: Implementation of stable releases of Stellar Core, Horizon, and RPC.
June 11: A Testnet reset to ensure all new implementations perform optimally.
June 18: A pivotal vote to upgrade the Mainnet to Protocol 21.

Implications for XLM Price?

Following a key update from Binance and a recent CNF post highlighting that Stellar Lumens is poised to challenge Ethereum in the smart contract space after the launch of the Soroban project, the transition to Protocol 21 could significantly enhance Stellar’s influence in the DeFi sector. This could lead to a substantial long-term appreciation in XLM’s price. According to the latest figures from Coin Market Cap, XLM is currently trading at $0.1025, marking a decrease of 0.95% in the past day and 4.52% over the past week.

In summary, Stellar’s advancement to Protocol 21 represents a significant stride towards integrating comprehensive smart contract capabilities, positioning it as a formidable contender in the cryptocurrency and DeFi markets. With critical updates and community-backed decisions on the horizon, the potential impact on XLM’s price and Stellar’s role in DeFi could be profound.