Stellar Lumens (XLM) is a leading blockchain network build to simplify the payment industry. It is a layer-1 network that has features that help developers integrate blockchain in their networks.
One of its most important features is its integration with USD Coin, the second-biggest stablecoin in the world. This partnership means that users can send and receive the token globally with minimal costs.
At the same time, it has partnered with MoneyGram, one of the biggest companies in the money transfer industry. That deal ensures that users can send USDC and withdraw them in thousands of MoneyGram’s locations.
Stellar has also created a blockchain that enables developers to build decentralized applications (dApps), especially in the finance industry.
The XLM token was trading at $0.50 on Wednesday, up by 535% from its lowest level this month. Its HypeIndex metric moved to 94%.
Positive hype
Stellar’s positive hype was mostly driven by the recent rally as the coin surged by over 535% from its November low. This surge brought its market cap to over $15 billion.
The rally was mostly because of the recent Trump election in the United States and the implication to the crypto industry. He is expected to appoint regulators who are friendly to the sector.
XLM’s surge also mirrored the performance of Ripple, which has been at the crosshairs of regulators in the past few years. Ripple and Stellar are related because the latter was established by Gavin Wood, who was also a co-founder of Ripple.
Stellar’s total value locked (TVL) in the decentralized finance (DeFi) industry has continued doing well and sits at a record high of $52 million. The biggest dApps in the ecosystem are Franklin Templeton, LumenSwap, Blend, and Aquarius Stellar.
There are signs that there will be a spot Stellar ETF in 2025 if Trump lives to his promise of making the US the crypto capital of the world.
Stellar’s role in the crypto industry is growing, especially because of its partnership with Franklin Templeton, which launched a tokenized fund using its blockchain.
Stellar has some positive technicals as it has remained above all moving averages, while oscillators have pointed upwards.
Negative hype
While Stellar’s TVL has jumped to a record high, it remains significantly smaller than other newer chains like Base and Sui.
Stellar’s role in the stablecoin market is relatively small as it has only $122 million in USDC stablecoin. This is a tiny amount since the coin has a market cap of over $35 billion. The amount is smaller than in other chains like Solana, Noble, Base, and Arbitrum.
Stellar could suffer a big reversal because of mean reversal, where an asset moves back to the mean price.
Stellar price analysis
The daily chart shows that the XLM price has gone parabolic in the past few weeks. It flipped the important resistance at $0.1632, its highest level in March this year.
The coin jumped and peaked at $0.6385, its highest level last week. It has erased some of those gains and is trading at the psychological point at $0.50. The coin remains above the 50-day and 100-day Exponential Moving Averages (EMA).
It has also formed a bullish engulfing pattern, which happens when a bullish candle covers a bearish one completely. Therefore, there is a likelihood that it will bounce back as bulls target the year-to-date high of $0.6385, which is about 26% above the current level.
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HypeIndex is an AI platform that detects Hype in stocks and cryptos before it moves the market, providing reliable early detection for profitable investment opportunities.
The algorithm for our proprietary HypeIndex score is based on sentiment analysis, data science and machine learning.
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