6 Factors Causing XLM Coin Prices to Rise 100%: Can They Still Rise?

Bittime - Stellar (XLM) has emerged as one of the best performing coins this week, becoming the third biggest gainer in the cryptocurrency market.

The price of XLM, the native crypto asset of the Stellar network, has surpassed $0.24 (Rp. 3,816) per unit, driven by several factors, including the adoption of the network by large financial institutions and the positive effect of the bull run. Bitcoin price.

Based on data from CoinMarketCap, the price of Stellar (XLM) has jumped more than 100% in the past week, from $0.123 (Rp. 1,953) on November 14 to more than $0.241 (Rp. 3,826) currently.

What is Stellar?

Stellar is an open source blockchain platform designed to facilitate financial transactions globally. 

Founded in 2014 by Jed McCaleb, co-founder of Ripple, Stellar is known for its focus on financial inclusion and efficiency in money transfers.

The Stellar Network uses its own crypto asset, called Lumens (XLM), to facilitate transactions and ensure network security.

What are the factors driving Stellar's price increase?

One of the main factors influencing Stellar's recent price surge is institutional adoption. 

1. Franklin Templeton Factors Into Project Stellar

Franklin Templeton, one of the world's leading fund managers, has become an important catalyst for the rise in XLM prices after announcing the use of this blockchain to manage its assets in a more efficient way.

2. BENJI Asset Expansion Factors from Aptos Network to Stellar

The fund manager stated that they will use Stellar blockchain technology for asset tokenization. 

The BENJI asset tokenization platform that was initially launched on Aptos has now been extended to Stellar to optimize the management of the more than $1.7 trillion (Rp. 27,033 trillion) in assets they manage.

3. Stellar Network Integration Factors into the US Government Monetary Fund

Franklin Templeton's decision to integrate the Stellar network into their US government monetary fund is a significant step. 

The efficiency and security of the Stellar network has been key to Franklin Templeton's asset management. 

By using Stellar, this fund manager was able to reduce operational costs and increase transaction speed, which benefited both the company and its investors.

Read too Reasons Why Crypto XLM Prices Are Rising, Here's the Analysis!

4. Rising Bitcoin Price Factors Touch New ATH

This news has an immediate impact on the price of Stellar. However, experts also point out that the positive effect of rising Bitcoin prices, which recently reached a new high (ATH) above $96,000 (Rp. 1,525,200,000), also contributed significantly to Stellar's rise.

Experts note that crypto markets tend to move in tandem, and Bitcoin's price recovery has created positive sentiment that benefits other cryptocurrencies, including XLM.

5. Factor Institutional Support for the Stellar Network

The Stellar Network has received support from various organizations, including the United Nations. 

In 2023, the organization began a pilot project to use Stellar technology in humanitarian aid programs, demonstrating the network's ability to increase efficiency and transparency in the distribution of funds.

6. Factor Use of the Stellar Network for Transactions in Official Records of Fund Share Ownership

Additionally, in April of this year, when Franklin Templeton launched the US Government Monetary Fund, they announced that the fund's transfer agent was using the Stellar network in their proprietary system for transaction activities to maintain official records of the fund's shareholdings.

This support has strengthened the credibility of the Stellar network and attracted more institutional investors to the blockchain ecosystem.

Read too XRP Price Analysis: Is $2 Target Achievable in the Next 3 Months?

Impact of XLM Price Increase on Market Capitalization

As a result of this price increase, Stellar's market capitalization has increased significantly. 

Stellar is currently ranked 20th on the list of cryptocurrencies by capitalization, cementing its position as one of the most valuable coins in the sector. 

Read too How to Buy Stellar (XLM)

Experts note that this growth not only reflects investors' confidence in Stellar's technology, but also the potential for continued growth in the future.

FAQ on Stellar Price (XLM)

1. How much is Stellar worth today?

The current price of Stellar (XLM) is around $0.5134 (Rp. 8,164) with a 24-hour trading volume of $7.65 billion. Source: Bittime.com.

2. What is the current price of Stellar?

The current price of Stellar (XLM) is $0.5134 (Rp. 8,164). For further information, you can visit Bittime.com.

3. How much does Stellar coin (XLM) cost?

The current price of Stellar coin (XLM) is $0.5134 (Rp. 8,164). You can check the latest prices on the platform Bittime.com.

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Reference:

Why has Stellar's price risen this week?. https://news.bit2me.com/en/why-is-the-price-of-stellar-going-up, Accessed November 25, 2024

Stellar Prices. https://coinmarketcap.com/currencies/stellar/, Accessed November 25, 2024

Author: IN