Firelight Raises $8M to Add Bitcoin and XLM Insurance
Stellar (XLM)
Editor:
Eugene Serbin
thecurrencyanalytics.com reports that Firelight has secured $8 million in funding to expand its DeFi insurance services beyond its XRP roots to include Bitcoin and XLM. The startup aims to address the fragmentation and security risks in DeFi by offering a model where holders can earn yield while contributing to a shared pool that covers losses from hacks. This approach targets both skeptical Bitcoin holders and efficiency-focused XLM users, who are traditionally less exposed to such insurance products.
The funding will be used to sharpen the platform's user experience and build out security protocols designed to reduce the odds of exploits rather than just recovering from them. Firelight is positioning itself as a cleaner entry point for fintech firms that want DeFi exposure but lack the operational capacity to manage security from scratch. The company is also exploring potential collaborations with other fintech firms, though no specific partners have been announced yet.
A cleaner interface is intended to help compliance teams explain the product to regulators and boards, making it easier for cautious institutions to adopt. Firelight needs to demonstrate traction across all three token communities before the next funding round becomes a comfortable conversation. The company has not yet disclosed a timeline for when the upgraded security features or new currency support will go live. The success of this model may depend on how quickly the next major hack occurs and whether the pool is large enough to matter when it does.
How the market reacted
Whalio's own Binance spot order flow for XLM, measured when this story was written up on 1 September 2026. Not the outlet's figures.
XLM is trading at $0.1773 with a 24-hour buy ratio of 56.2%, indicating that buyers have controlled the market for 17 out of the last 24 hours. The 1-hour buy ratio dropped to 45.9%, suggesting that immediate buying pressure is fading compared to the broader 24-hour trend. However, the 4-hour buy ratio sits at 56.1%, showing that buying interest remains consistent over a slightly longer timeframe. Volume delta reflects this shift, with a positive $1,433,099 over 24 hours but a negative $52,016 in the last hour. The cumulative volume delta (CVD) closed at +$1,014,877, confirming that net buying has dominated the day despite the recent slowdown. Spot volume reached $11,480,189 across 81,588 trades, showing active participation.
The latest daily buy ratio of 52.4% sits at the 71st percentile of the last 281 days, against a median of 50.7% - stronger buying than most days.
Twenty-four hours later
What XLM did over the 22 hours after the story broke. The market moves for its own reasons; this is what happened, not what the story caused.
Was that an ordinary day?
The same Binance spot measurements for XLM, averaged over the days leading up to the story.
Over the preceding week, XLM saw a 7-day average buy ratio of 51.4%, meaning the current 24-hour ratio of 56.2% represents a +4.8 point increase in buying dominance. This suggests today is an unusually strong day for buyers compared to the weekly norm. Volume activity was subdued, with 24-hour spot volume at $11,480,189 representing just 0.76x the weekly average. Despite lower volume, the coin experienced a -8.5% price change over the eight-day period. The total volume delta for the week was +$4,350,747, with net buying occurring on 6 of the 7 days, indicating persistent but price-suppressing accumulation.