Can XLM price hit $1 as DeFi TVL and open interest soars?

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As a seasoned crypto investor with a knack for spotting opportunities and a penchant for taking calculated risks, I find myself rather intrigued by Stellar Lumens (XLM) lately. Its recent surge to an intraday high of $0.5510 is nothing short of impressive, especially considering its low fees and fast network compared to competitors like Solana.

On November 29th, the value of Stellar skyrocketed, as its DeFi environment expanded significantly and the number of open interests in its futures contracts hit an all-time peak.

Stellar Lumens (XLM) surged to an intraday high of $0.5510, marking its highest level since Monday. This represents a 27% increase from its weekly low, bringing its market cap to over $16 billion.

Stellar’s rally mirrored that of Ripple (XRP), which jumped by over 20% as its demand jumped. The two coins have a close correlation because of their role in the cross-border payment industry.

In its latest quarterly update, it was revealed that Stellar processed approximately 103 million payment transactions, placing it as the second-largest blockchain following Solana (SOL). This surge in popularity can be attributed to its significantly lower fees compared to other platforms. For instance, Stellar’s average transaction fee is a mere $0.000014, contrasted with Solana’s $0.004473. Moreover, Stellar’s network boasts an impressive speed, with transactions finalized in virtually zero seconds.

Currently, statistics indicate that the amount locked in Stellar’s Decentralized Finance sector has soared to an all-time peak of $60.6 million. When you add Franklin Templeton’s funds, Stellar boasts more than $300 million in total assets.

The Defi resources on this network are comparatively smaller compared to networks such as Base and Sui due to it being a fresh, emerging project. Launched just a short while ago, Soroban, its primary network, has been experiencing robust growth.

The amount of Stellar’s future contracts in active hands (open interest) has significantly increased, currently sitting at approximately $371 million, slightly below its peak of almost $400 million for the week.

XLM price could double

Over the last several weeks, the Stellar Lumens price has experienced a significant surge, as can be seen in the weekly chart. It surpassed the significant resistance point of $0.1945, marking its highest point on June 10. This break above that level is crucial because it represents the neckline of the double-bottom pattern at $0.076.

In simpler terms, the value of the coin has surpassed its highest peak from November 2021 at $0.4400, and it’s currently above all its moving averages. This suggests that the ‘bulls’ or buyers, are currently in charge of the market trend.

As an analyst, I find myself cautioning that Stellar appears highly overbought at present, suggesting a potential reversal may be imminent. However, should it manage to break through the critical resistance level of $0.6370, marking its highest point last week, this could signal further growth, possibly reaching its all-time high of $0.7960. If Stellar surpasses that level, we might see a significant jump in value, potentially doubling from the current price range.

The optimistic outlook hinges upon Bitcoin maintaining its robust upward trajectory and surpassing the crucial threshold of $100,000.

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2024-11-29 19:40