XLM has increased by almost 150% in the past 7 days.
There is no specific announcement behind this price increase, although the announcement of OCC’s stablecoin may have been a factor.
With such high payouts, is the altcoin season here?
Has altcoin season arrived? It just might be. Stellar Lumens (XLM) has appreciated significantly over the past week.
Before the altcoin season begins, Bitcoin and Ethereum may need to experience drastic price increases. Bitcoin has already crossed $ 35,000 for the first time, and Ether has risen more than 50% last week.
Although number one and number two cryptocurrency stole the show, Stellar’s XLM token was by far the biggest winner of the week. Over the past seven days, XLM has risen by over 140%, increasing its price by over 90% in the past 24 hours alone.
According to CoinGecko , an online cryptocurrency market capitalization aggregator, this makes XLM the top performing cryptocurrency among the top 100 tokens.
What caused the recent surge in the price?
It is difficult to determine what made XLM take off, as there have been few announcements that point to such a massive increase in growth.
The US Treasury’s Office of the Comptroller of the Currency (OCC), the largest US-based banking regulator, recently issued guidelines on banks using stablecoins for settlement. Some users think Stellar is uniquely positioned for adoption.
Since the ad does not point to any specific blockchain protocol, these users are only speculating.
What are Stellar and XLM?
The Stellar Network is a decentralized open-source protocol that allows cross-border transactions between any currency pair.
Its cryptocurrency, XLM, is a governance token that serves as a reward mechanism for users who help secure the network.
As the ninth largest cryptocurrency by market cap with a current valuation of nearly $ 9 billion (according to CoinGecko), the Stellar network is one of the biggest players in the blockchain space.
Managed by the Stellar Foundation, a non-profit supervisory board, Stellar seeks to position itself as an easy and accessible bridge between cryptocurrency and fiat currencies.
Since the creation of the Stellar network in 2015, the network has processed over 450 million unique transactions made by more than four million people.
Using Stellar’s open source and decentralized technology, small developers and gigantic conglomerates can leverage the network to potentially increase transaction efficiency.
Stellar seeks to continue its growth in mainstream adoption by offering users transactions with any currency on the blockchain. It’s unclear whether Stellar will increase at the astronomical rate it is currently following, but it may be a project to watch.