Stellar Lumens, a decentralized network launched by the Stellar Development Foundation, has recorded immense growth despite the poor market situation. The company has reported an annual increase of 176% in payments in 2022.
Unfortunately, the platform’s native token, XLM, has performed poorly in 2022. The price of the XLM token has dipped by about 73% this year.
Stellar Announces 176% Increase In Transactions
The Stellar Network allows individuals to conduct transactions across borders at a given fee. The foundation’s recent report stated that the number of transactions done through the Stellar network has increased by 176%.
Meanwhile, investors who bought the XLM token are unhappy about their investment. At the beginning of 2022, the token was trading at about $0.2956.
Unfortunately, the token’s price has dropped and is trading at the $0.0700 mark. The coin reached an all-time high of $0.9381 on January 4th, 2018.
The Stellar network has recorded immense usage in 2022 amid the crypto winter crisis. According to the company’s report, the network reached 1 billion operations in one quarter.
In 2021, it took the network two quarters to reach one billion transactions. The platform’s total number of user accounts has surpassed 7 million, indicating an annual growth of 17%.
Denelle Dixon, the CEO of Stellar Development Foundation, while responding to the news, said “I can confidently say that Stellar provides payment solutions and offers real-life use cases.”
Investors Accuse Stellar Of Listing Scam Tokens
On the other hand, reports alleged that scam tokens pumped the growth of the Stellar network. A community member argued that innocent investors purchasing scam tokens account for most transactions.
Moreover, investors lost millions of dollars after investing in tokens listed on Stellar. Many have accused the network of listing scam tokens to defraud investors.
In 2022, telegram groups such as Quantum Stellar Initiative (QSI) and WhipLash347 promoted several scam tokens. They led investors to believe that the price of the tokens would skyrocket in no time.
Investors blame the team behind the platform for being lazy and allowing the token’s market cap to fall. At the beginning of 2022, the token’s market cap was about $7.8 billion. Currently, data from CoinGecko shows the market cap has dropped to $1.8 billion.
Although the number of transactions and user accounts on the Stellar network has increased, the platform’s popularity is reducing daily. Google Trends data revealed that interest in the payment system was 100 in January. However, in December, the interest dropped to 43.