Stellar Lumens reports a 176% annual increase in payments. But investors are disappointed as the native token XLM is down by 73% in 2022.
Stellar, a decentralized network created by the Stellar Development Foundation, helps with cross-border transactions and transaction fees. It is powered by XLM tokens. The foundation announced a 176% increase in the transactions made via the Stellar network.
Despite the developments, investors are at a 73% loss in their XLM holdings.
Stellar Lumens Powering Real-World Utility
Stellar Lumens reports significant utility growth in 2022 despite the crypto winter. The network hit 1 billion operations in just one quarter as compared to two quarters in 2021.
The total accounts on the network crossed seven million with 17% annual growth. The total payments done using the Stellar network saw a 176% increase.
“I can say with confidence that the Stellar network is providing the answer and delivering real world use cases,” says Denelle Dixon, the Chief Executive Officer of the Stellar Development Foundation.
Scams Pumped the Stellar Lumens Growth?
A community member accused the majority of these transactions of being done by innocent investors buying scam tokens.
Investors lost millions due to scam telegram groups such as WhipLash347 and the Quantum Stellar Initiative (QSI) that promoted certain tokens listed on the Stellar network. The community believes that Stellar has the worst scams.
The Investors Suffer a 73% Drawdown; The Network Suffers Losing Interest
Despite the growth in network usage, the investors’ portfolio suffers a 73% drawdown in 2022. The native token XLM was trading around $0.3 during January 2021, which is now down to around $0.074. The investors blame the team’s lazy development for the fall in market capitalization.
For BeInCrypto’s latest Technical Analysis on XLM, which focuses on why the price correction could end, click here.
Despite the reports of an increase in new accounts on the Stellar network and a 176% spike in payments, the network’s popularity is decreasing. According to the data from Google Trends, the Interest over time for the Stellar payment network fell from 100 in January to 43 in December.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
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