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Stellar (XLM), explained: What it is and how it works
Stellar is a decentralized payments network designed to offer fast, secure and cost-effective cross-border transactions. Established in 2014, Stellar facilitates near-instant global payments and currency exchanges.
The platform connects individuals, banks and payment systems to transfer currencies reliably and almost instantaneously at a fraction of traditional costs. It has positioned itself as a robust cross-border remittance tool, enabling the transfer of all forms of money and value, whether a fiat currency like the US dollar or euro or a cryptocurrency such as Bitcoin.
Stellar is a decentralized, open-source blockchain run by independent validators. The Stellar Development Foundation (SDF) is a nonprofit, non-stock organization founded by Jed McCaleb. It maintains the Stellar protocol’s codebase, supports technical and business communities within the ecosystem, and engages with regulators and institutions on policy matters.
The SDF’s operations are funded by a reserve of digital assets, known as lumens, which were allocated at the protocol’s inception. The use of these holdings is governed by specific mandates.
On Oct. 15, 2020, the SDF announced that Stellar will be an official USD Coin blockchain. USDC is a stablecoin issued by Circle.
This led to the October 2021 collaboration between the SDF and MoneyGram, a global financial technology company, transforming settlement flows by facilitating near-instant settlement in USDC. This partnership allowed users of digital wallets connected to the Stellar network to access MoneyGram’s global retail platform, creating a bridge between digital assets and local currencies.
In September 2023, EURC, Circle’s euro-backed digital currency, became available on the Stellar Network, enabling real-time, global payments.
The network enabled full-featured smart contracts in 2024. It aims to transform international payments and remittances, making them safer, faster and more affordable, as well as to connect real-world assets to decentralized finance to support products offering the full range of everyday financial services. Read More
Pectra hard fork explained — Will it get Ethereum back on track?
Confused by all the technical jargon used by devs to explain Ethereum’s Pectra hard fork? We’ve translated the upgrades into English for ordinary people.
Initially planned to be the largest upgrade in Ethereum history with up to 20 Ethereum Improvement Proposals (EIPs), the fork has since been split into two. As a result, Pectra is bringing just a temporary reprieve from scaling issues by doubling the number of blobs used for data availability from three to six.
Mallesh Pai, the senior director of research at Consensys, points out that the idea of doubling blobs “was not on the roadmap like six months ago,” but the upgrade is still not going to be able to meet the astonishing demand from L2s.
“The current estimates based on L2 rate of growth are that this upgrade will only be enough until the end of the summer,” says Pai.
The good news is that the Fusaka fork, slated for later in the year or early next year, is set to include an upgrade called Peer Data Availability Sampling (PeerDAS), which will be the most important change for scaling; Buterin wants a laser-like focus on it. Read More
Top Decentralized Exchange Uniswap (UNI) Rolls Out New Protocol Upgrade Across Multiple Chains
Uniswap (UNI), the top decentralized exchange (DEX) by trading volume, has rolled out a new protocol upgrade across multiple chains.
The DEX says its new “v4” transforms the protocol into a “developer platform.”
“Made possible with the introduction of hooks – contracts that allow anyone to customize how pools, swaps, fees, and LP (liquidity provider) positions interact. Hooks mean unlimited new features that drive deeper liquidity and more swaps.
The lowest cost version of the protocol yet. Pools on v4 are expected to be 99.99% cheaper to create, and swappers can expect significant savings on multi-hop swaps. Plus, native ETH support adds significant savings for ETH pairs.”
Uniswap also says that the upgrade underwent nine audits, a security competition and a $15.5 million bug bounty – none of which unearthed any critical vulnerability. Read More
Charles Hoskinson to Launch PAC Aiming to Make Wyoming Tech
Input Output co-founder and CEO Charles Hoskinson recently announced that his Wyoming Integrity Political Action Committee (PAC) will launch this year. The PAC is expected to promote Hoskinson’s vision of a Wyoming that adheres to sustainable and ethical procurement practices.
According to a statement, the PAC’s ultimate goal is to support the Input Output founder’s mission of making Wyoming the epicenter of emerging technologies — including blockchain, artificial intelligence (AI) and quantum computing. Revelation of Hoskinson’s ambitious plan comes as the 10th largest U.S. state prepares to launch its stablecoin.
In August 2024, Wyoming Gov. Mark Gordon announced that the state would launch its stablecoin, known as the Wyoming Stable Token (WST), in the first quarter of 2025. At the time, Gordon claimed that the stablecoin would create a new revenue stream for the state and act as a model for a digitized dollar at the federal level.
Launching the stablecoin is expected to move Wyoming closer to its goal of becoming a leader in financial innovation. As noted in the statement, the Cardano blockchain has been selected as the platform for the state’s stablecoin initiative. Reflecting on this milestone, Hoskinson said:
The Wyoming Integrity PAC represents a vital step toward establishing a framework of fairness and accountability in public procurement, ensuring that both government and private stakeholders operate with transparency and due diligence. Without this foundation, Wyoming’s ambitions to lead in blockchain adoption and digital transformation could falter, and the U.S. risks compromising its reputation as a global leader in digital innovation. Read More
Ethereum needs more blockchain activity, adoption, to recapture $4K
Ether faces significant resistance at $3,400, with over $1 billion worth of cumulative leveraged shorts set to be liquidated.
Ethereum needs stronger blockchain activity, new use cases, and collaboration with public and private interests to regain investor confidence and reclaim its previous all-time high, analysts told Cointelegraph.
Ether has been in a downtrend for nearly six weeks, falling below the $4,000 psychological mark on Dec. 16, 2024. The world’s second-largest cryptocurrency declined more than 20% since, trading at $3,260 at the time of writing, Cointelegraph Markets Pro data shows.
To reverse its decline and move toward its previous highs, Ether will need more fundamental blockchain activity first, according to Aurelie Barthere, principal research analyst at Nansen.
“Other layer-1s are catching up with Ethereum regarding apps, use cases, fees and amount staked,” Barthere told Cointelegraph.
Barthere believes Ethereum could benefit from increased collaboration with private and public sector entities, particularly in the US, given recent regulatory momentum in favor of blockchain and crypto.
Additionally, the Elon Musk-led Department of Government Efficiency (DOGE) could boost Ethereum’s adoption. The non-governmental agency has reportedly explored blockchain-based expense tracking and financial management solutions, Barthere noted:
“Musk’s DOGE cost-saving governmental organization has been rumored to have met public blockchain representatives for a potential on-chain expense-tracking and management.” Read More
Could Bitcoin Reach A $1 Million Milestone Sooner Than Later? Here's A Possible Path To Achieving It
In the past half-year, Bitcoin (BTC) has seen remarkable expansion, with its value rising by 50% and breaking the $100,000 barrier for the first time. The cryptocurrency community is bullish on the recent election outcome, expecting President Donald Trump's leadership to fuel further growth and propel Bitcoin to new levels in the years to come. The cryptocurrency space is abuzz with interest, and a recent announcement from the Trump administration, which is seen as more crypto-friendly, has sparked anticipation that it could be a catalyst for even more incredible price appreciation for Bitcoin.
Following Gary Gensler's resignation as the Chairman of the Securities and Exchange Commission (SEC), known for his negative stance on cryptocurrency, Mark Uyeda has taken on the role of acting chairman. Uyeda is recognized for supporting cryptocurrency and blockchain advancements, marking a notable shift from Gensler's strict regulatory strategies. Uyeda's more favorable stance towards cryptocurrency could potentially lead to less stringent regulations, positively impacting Bitcoin's value. Uyeda will serve as acting chairman until the Senate confirms Paul Atkins, the nominated SEC chairman. Read More
Solana stablecoins attain 2x market cap in January
Circle’s USDC was the most dominant stablecoin on Solana, accounting for nearly 80% of all stablecoins on the network.
The market capitalization of stablecoins on the Solana blockchain more than doubled in January, soaring from $5.1 billion on New Year’s Day to $11.4 billion by month’s end, according to data from DefiLlama.
Solana has emerged as the preferred network for memecoin traders, luring activity from Ethereum with its lower fees and faster transactions. The surge in stablecoin issuance appeared to be linked to the renewed explosion of memecoin speculation, which gained traction when US President Donald Trump launched his own Solana-based cryptocurrency on Jan. 18, followed by a MELANIA token named after the first lady.
According to CCData, Solana’s stablecoin supply has jumped by more than 73% since mid-January, driven by Trump’s memecoin launches.
Tether’s USDT leads stablecoins on both Ethereum and Tron, with $65 billion and $60 billion, respectively. But on Solana, Circle’s USDC is the most dominant stablecoin, accounting for nearly 80% of all stablecoins on the network at $9.25 billion.
Blockchain data shows that Circle has continued to ramp up USDC issuance on Solana, minting an additional $250 million on Feb. 3, bringing its total for the past week to $1.25 billion. Read More
Too many tokens? Analysts argue oversupply could end altcoin season
With 36.4 million tokens flooding the market, analysts question whether altcoin seasons are a thing of the past.
Cryptocurrency analysts and traders are debating whether an altcoin season — a period when alternative cryptocurrencies outperform Bitcoin in the market — is over.
Historically, altcoin seasons have been marked by significant price rallies for non-Bitcoin cryptocurrencies.
In the 2017-2018 cycle, the altcoin market experienced its most explosive growth, with coins like Ether, XRP and Litecoin posting record-breaking gains.
Crypto analyst Ali Martinez argues that the sheer number of altcoins now makes the possibility of a sustained altseason unlikely.
“Today, there are over 36.4 million altcoins, compared to fewer than 3,000 during the 2017-2018 alt season and even fewer than 500 altcoins in 2013-2014,” Martinez posted on X, citing data from Dune Analytics. “With such massive supply, the market has changed significantly.”
Echoing this sentiment, economist Alex Krüger noted how the oversupply of tokens affects market behavior.
“Too many tokens. Infinite more to come. Supply of tokens is greater than demand. This illustrates why expecting an ‘altseason’ where everything goes up for an extended period of time is misplaced,” Krüger wrote on X. He predicted that future alt seasons would be shorter, lasting only “a few days to a few weeks at most.”
Krüger also pointed out the challenges for investors, noting that the abundance of options makes effective portfolio management more difficult:
“Being a good coin picker is now very hard. Just as being a good stocks picker is also very hard.” Read More
Monochrome Brings First Aussie Bitcoin, Ethereum ETFs to Singapore Market
Singapore is opening its doors to Australian crypto ETFs as institutions eye a regulated entry into a turbulent crypto market.
Australian crypto-asset firm Monochrome Group has registered its Bitcoin and Ethereum ETFs with Singapore's Monetary Authority, marking a strategic expansion into Southeast Asian markets amid growing institutional demand for regulated digital asset products.
"We're bringing Monochrome to South East Asia, starting with getting the first Australian Bitcoin ETF registered with the Monetary Authority of Singapore," CEO Jeff Yew told Decrypt.
The firm's Bitcoin ETF (IBTC) and Ethereum ETF (IETH) secured registration as restricted schemes, enabling access for accredited or institutional investors through Singapore's regulated financial framework, which places a minimum of S$200,000 per transaction.
These new products allow both Bitcoin and cash subscriptions and redemptions, addressing varied institutional requirements in the region. Read More
Utah could be first US state to pass Bitcoin reserve bill: Satoshi Action Fund
Utah’s Bitcoin reserve bill could be the first of its kind to pass at the state level in the US because of its shorter legislative window to decide on bills, says a Bitcoin advocate.
Utah could be the first US state to establish a Bitcoin reserve due to a shorter legislative window calendar and “political momentum."
There’s a “very good shot” that Utah will be the first because they only have 45 days to decide, Satoshi Action Fund CEO Dennis Porter said in a recent interview with US Senator Cynthia Lummis, which he shared on X on Feb. 2.
“It’s either sink or swim in 45 days. No one else has a faster calendar, and no one else has more political momentum and willpower to get it done,” Porter said in the Jan. 21 interview.
One of Utah’s house committees on Jan. 28 voted 8-1 in favor of a bill that would allow the state to invest a portion of public funds into Bitcoin, other cryptocurrencies with a market cap above $500 billion and approved stablecoins. Read More
Thailand SEC plans to launch tokenized securities trading system
The Securities and Exchange Commission of Thailand is planning to launch a distributed ledger technology-based trading platform for securities firms to trade digital tokens.
The deputy secretary-general of the Thai SEC said that token investments were gaining traction and the regulator will allow securities companies to trade digital tokens to capitalize on their large investor bases, the Bangkok Post reported on Feb. 3.
“The SEC is leveraging technology to enhance efficiency in the capital market by promoting an electronic securities ecosystem,” Jomkwan Kongsakul said, adding, “new regulations will be launched to facilitate the issuance of electronic securities and online purchases of debentures,” or medium-to-long-term debt instruments used by large companies to borrow money.
Four digital token projects have been approved for the SEC’s new DLT debt instrument trading system, with two more under review focusing on green tokens and investment-based projects, the report added.
The planned system features full digitalization of bond trading for both primary and secondary markets, coverage of settlement, trading, investor registration, payment processes and multiple chain support with interoperability standards, though it did not specify which chains. Read More
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
Featured Image Source: Pixabay
