Stellar (XLM) price is trading over 4% higher today to slightly reduce big losses that have been recorded so far in December.
Fundamental analysis: Stellar Development Foundation invests $3M in Settle Network
The Stellar Development Foundation said it made a strategic investment in the biggest Latin American digital assets settlement network across for exchange and cross-border payments Settle Network.
The SDF’s investment of $3 million in lumens is expected to improve Settle’s array of payment tools including fiat-to-crypto on-ramps for B2C and B2B users, stablecoin issuance and marketplace, as well as stablecoin payment processing and merchant gateway.
“Settle Network is delivering on the vision and mission of Stellar, putting blockchain technology and access to finance into the hands of people that need it,” said Denelle Dixon, chief executive and managing director of SDF.
“With this shared mission driving us, our investment represents the tremendous success of Settle to date in serving LATAM communities and its potential to make stablecoin technology accessible and useful globally. That’s how together we scale and bring greater adoption of blockchain technology.”
The total supply of stablecoins doubled in the third quarter of this year, indicating a strong surge in demand for stablecoins. As such, Settle Network is in a good position to keep growing together with the stablecoin market, receiving an additional boost from the recent launch of the first stablecoin exchange StableX.
This is the fourth investment the Stellar Development Foundation made this year, amounting to a total of $9.265 million invested this year. Before Settle, the foundation invested in three more companies including DSTOQ, SatoshiPay, Abra.
“When we started Settle, we chose to build on Stellar because its technology is designed for global interoperability and that has enabled us to create a thriving stablecoin business in LATAM and expand our product offering to launch the world’s first stablecoin exchange and stablecoin gateway, StableX,” stated Pablo Orlando, chief executive of Settle Network.
Technical analysis: Poor performance in December
XLM/USD price is trading over 4% higher today as the buyers try to break the bearish run that has started in the last week of November. Two lower highs are likely to continue creating downside pressure on XLM price.
The trend line that connects these two tops comes just below the $0.20 mark in case XLM buyers are able to take the price action 30% higher from the current market price. Conversely, a major support line is located near $12.00.
The Stellar Development Foundation invested $3 million dollars in Settle Network, the largest Latin American digital assets settlement network across for exchange and cross-border payments. In the meantime, buyers are trying to reduce the bearish pressure and push the price action towards $0.20 in January.