- Stellar’s XLM jumps by more than 30 percent in two days.
- The upside move came after the foundational body announced that they were burning the XLM supply.
- The rival community accused the Stellar CEO of orchestrating the XLM pump.
Stellar’s native asset XLM registered fresh gains on Tuesday as its founders decided to wipe out half of the token’s net supply.
The Stellar Development Foundation (SDF) announced yesterday that it has burned 55 billion XLM tokens. Earlier, the total supply of XLM was 105 billion, out of which 20 billion were in circulation. The foundation’s CEO Denelle Dixon stated that they removed 5 billion XLM from their operating fund and 50 billion XLM from their airdrop program.
The XLM-to-dollar exchange rate was trading at $0.09 as of 0805 GMT, up 13.2 percent since midnight. The latest pump brought the pair’s 48-hour gains up by more than 30 percent, making Stellar the most profitable blockchain project on a month-to-date basis. Meanwhile, XLM also fared well against its top rival Bitcoin, rising by up to 31.46 percent against it in the past 48 hours. At its intraday highest, the XLM-to-BTC exchange rate was 976 sats.
Stellar’s XLM price rose by 30 percent in two days | Source: TradingView.com, Coinbase
The upside tick nevertheless came after a depressive 2019. XLM earlier plunged by more than 80 percent against BTC, establishing a year-to-date low of 556 sats on September 13. The Stellar token rebounded only after Bitcoin’s uptrend halted near the $14,000 level in July, showing that the gains came from traders’ hedging strategies instead of solid fundamentals.
Why So Burning?
The sudden-burn led critics – mostly followers of the XLM rival groups – to say nasty things about SDF.