Binance Unrolls Stellar (XLM) Staking
Receiving rewards in Lumens is now possible by storing XLM in Binance’s wallets.
Binance expanded its staking program, by unleashing Stellar (XLM) storage with included rewards over the weekend. The move follows Binance’s readiness to supply staking services for other assets, such as NEO, VeChain (VET), and Ontology (ONT).
Until now, holding XLM only accrued rewards when held in a wallet with full control of the private key. Binance now follows the trend of other exchanges like Coinbase to offer a mix of custodial services and staking. This also means that Binance will stake all the XLM in its cold storage wallets. The minimum XLM balance for staking is 10 coins.
Binance aims to encourage XLM staking by proposing a large-scale airdrop for anyone putting in their coins until the end of July. The airdrop will reward the equivalent of a yearly XLM reward:
The news boosted the XLM market price slightly, to $0.091. The asset has hovered sideways, in a similar pattern to Ripple’s XRP. The biggest bid to fame for XLM is the attempt to use its protocol for cross-border payments. Once again, this does not guarantee demand for the XLM asset.
Binance only offers a small-scale XLM market, with around 7% of all activity. XLM is mostly concentrated on HitBTC. The asset was more prominent during the 2017 upward run of altcoins. However, XLM lost its appeal and stagnated. Now, there are expectations XLM may re-awaken, potentially triggered by the success of Ripple’s XRP.
XLM is also hampered by its pairing with Bitcoin (BTC) and almost no direct liquidity flowing in from either fiat or stablecoins. This has dashed the expectations of XLM rallying to peaks near $1 again.
The other reason is that the Stellar network is relatively obscure, and has failed the promise of carrying ICO tokens, beyond the first project, Mobius (MOBI). The decentralized exchange also shows low activity. The volumes have fallen to around $51,000, from peak activity above $1 million. Still, the Stellar DEX never reached volumes anywhere near larger market hubs.
The higher XLM activity on Binance may serve to reawaken the asset’s reputation and boost trading activity.