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The Soroban smart contract platform has been launched on the Stellar network, making smart contracts fully functional on this platform thanks to its introduction.
Furthermore, a $100 million adoption fund has been created to promote the development and adoption of Soroban. Let’s see all the details below.
Summary
Soroban makes smart contracts operational on the Stellar network
As anticipated, the launch of the Soroban Development Foundation (SDF), a platform for smart contracts on the Stellar network focused on payments, marks one of the most significant updates in the decade-long history of the project.
After a two-year testing period, phase 2 of the Soroban mainnet has been officially launched today, allowing the creation of decentralized applications ready for use by users.
Soroban offers developers a new tool to implement smart contracts, thus expanding the ecosystem of applications built on the Stellar blockchain.
The platform uses WebAssembly (WASM), a custom binary code format tailored for traditional web and blockchain integrations.
The introduction of smart contracts by Stellar aims to expand the use of the network beyond cryptocurrency payments, including decentralized finance (DeFi) and other financial services.
Furthermore, the SDF has allocated 100 million dollars for a Soroban adoption fund, in order to support the development of this new platform.
The fund has financed over 160 projects, focusing on the use of Stellar’s smart contract capabilities for various applications.
Among the projects based on Stellar there are bridge projects, Axelar, Allbridge, the Band Protocol oracle and new DeFi arrivals like Sworoswap and Blend.
Stellar: from foundation to transformation
We remember that Jed McCaleb and Joyce Kim founded Stellar in 2014 as an open-source blockchain network with a focus on cross-border transactions.
Initially conceived as a fork with a system similar toRipple, Stellar faced challenges and embraced the idea of a unique solution. It thus introduced a completely revamped codebase, adopting the Stellar Consensus Protocol (SCP) as the new consensus mechanism.
Although in the past Stellar has supported smart contracts, its main team has gradually focused their efforts on developing Soroban.
This platform, based on WASM, offers a generic and accessible approach to developing high-performance dapps.
Brief focus on the price of Stellar
After a period of steady growth, the price of Stellar has experienced a slight decrease, approaching the area of $0.1620 against the US dollar. The XLM/USD pair is trading below the support of $0.1400, testing the area of $0.1240.
A minimum has formed around $0.1241 and the price is currently testing a new increase. There has been a breakout above the resistance area of $0.12030, with the price testing the 23.6% Fibonacci retracement level of the downward movement.
Currently, XLM is trading at around $0.140 and below the 55 simple moving average. Bulls are attempting a close above a key downtrend line formed with resistance near $0.1325 on the 4-hour chart.
On the positive side, the price is facing resistance near $0.1325, with the next major resistance around $0.1440 or at the 50% Fibonacci retracement level. A clear break above $0.1440 could push the price towards $0.160 and beyond.
Regarding support, it is initially found around $0.1240, with the main support near the $0.1150 area. Further losses could bring the price towards $0.1040 in the short term, with the possibility of a test of $0.100.
The analysis of the chart indicates that the price of XLM is currently below $0.140 and the simple moving average of 55 (4 hours).
Overall, the price could experience a significant increase in the event of a clear break above the $0.1325 resistance.