Stellar (XLM) Testnet Upgraded To Protocol 21, Will It Impact Price?

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As a researcher with a background in blockchain technology and experience following the developments within the Stellar ecosystem, I’m excited about the recent upgrade to Protocol 21 on the Stellar Testnet. This update signifies an important step towards realizing Stellar’s ambition of becoming a full-fledged smart contract platform.

The Stellar Testnet protocol has been advanced to Protocol 21, marking a significant milestone in the development of its smart contracts on the blockchain. As mentioned in the official announcement on its X account, this upgrade prepares Stellar to achieve the remaining objectives outlined in its roadmap.

Stellar Protocol 21 Upgrade: Next Steps To Watch

Stellar initially gained prominence as a primary payment system. With a substantial user base, it now plans to shift its focus, aiming to adopt advanced features like those offered by renowned layer-1 blockchain protocols, specifically full smart contract functionality, through the implementation of Protocol 21.

In February, the network’s validators gave their approval for implementing smart contract functionality through a grand proposal. This endorsement was crucial as it paved the way for the rollout of Protocol 21 update, which will engage the entire Stellar community. Post the Testnet update, Stellar has revealed key dates for its updated roadmap: May 30, June 11, and June 18.

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

On May 30, the blockchain said it will implement the Stable releases of Stellar Core, Horizon and RPC. The Stellar Core slated for May 30 remain the second candidate developed to support Protocol 21. On June 11, the protocol will implement a Testnet reset to guarantee all the changes and additions works optimally.

Similar to how the significant vote led by validators marked the beginning of the Protocol 21 phase, another pivotal vote is approaching. On June 18, the entire Stellar ecosystem will undergo a Mainnet upgrade vote. The outcome of this vote will shape the future direction of the network.

If the plans come to fruition, I believe the blockchain will undergo a significant transformation, bringing substantial benefits for Stellar Lumens (XLM). As the native asset of the Stellar network, XLM is poised to take center stage in the burgeoning Decentralized Finance (DeFi) landscape. The price appreciation could be quite impressive in the long run.

As a crypto investor, I’m excited about the positive news regarding XLM. However, it’s important to note that at the current moment, each XLM coin is being traded for $0.103, which represents a 1.33% decrease in value over the past 24 hours.

Drastic L1 Upgrades In Web3

As Stellar works on a significant enhancement, it won’t be the pioneer in pursuing such an extensive expansion plan. Filecoin (FIL), EOS, and Chainlink (LINK) have already integrated smart contracts that are compatible with the Ethereum Virtual Machine (EVM) ecosystem.

I, as an analyst, would describe it this way: Ethereum’s transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) via The Merge represents a groundbreaking shift in the blockchain industry, making Ethereum, being the leading DeFi protocol, a pioneer in implementing such upgrades.

As a researcher studying the Stellar blockchain, I’m excited to note that the Soroban smart contract upgrade is gathering widespread support within our ecosystem. Following the successful certification of Protocol 21 integration, the initial batch of smart contracts have been activated on this protocol.

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2024-05-14 22:54