Stellar (XLM) has entered a new phase in its transformation following the rollout of the Protocol 20 upgrade on the mainnet. With this update, Soroban smart contract capabilities are now activated. In this context, Stellar has now become a blockchain that can host smart contracts and decentralized applications (dApps).
Stellar started as a blockchain designed specifically for payments. However, since its inception, it has expanded with this new feature set to establish its influence in the decentralized finance (DeFi) ecosystem. With the evolution of Blockchain and Web3, this pivot is quite significant. Currently dominated by protocols such as Cardano (ADA) crypto- has the potential to capture a larger portion of the market.
Stellar Network highlighted Protocol 20 as the most transformative upgrade ever implemented in blockchain. Notably, Soroban smart contract capabilities are not yet fully active. Additionally, the deployment of these capabilities will occur in phases 0 to 2. Currently, the rollout is in Phase 0, the stability testing phase. At this stage, ledger capacity for Soroban transactions starts low and will be increased in Phase 1 for deployment and testing of applications on the mainnet. In the second phase of Soroban rollout, it will be ready for use and the capacity of smart contracts will be continuously expanded. However, the Stellar network has not set a timeline for the release of these phases.
The Future of Stellar (XLM) Price Looks Uncertain
Stellar’s price is on the path to recovery following news of Soroban smart contract capabilities. According to Coingecko data, at the time of writing this news, the price of XLM is trading at $ 0.1149, with an increase of 3.3% in the last 24 hours.
Koinfinans.com As we reported, investors appear to be heavily gravitating towards Stellar, as reported by a 20% increase in trading volume to $119,262,381. It is predicted that with the introduction of smart contracts, XLM will find wider usage areas and begin to compete with other assets such as Ethereum (ETH) and Solana (SOL).
