Stellar’s XLM native token is grabbing attention as it undergoes a staggering surge. The impressive performance witnessed this month has propelled XLM from being underestimated to one of the top gainers in 2024.
XLM managed to achieve an impressive 61% increase from its lowest to highest point on Saturday, November 23rd, further extending its weekly surge to 235%.
During the current month, XLM has rallied a remarkable 600% from its lowest to highest value, positioning itself as one of the strongest performers among leading cryptocurrencies.
Although XLM seems to be defying expectations, its remarkable performance was noteworthy for another significant reason. The cryptocurrency was trading close to its historical lows at the beginning of November; nevertheless, its astounding rally pushed it closer to its all-time high in 2021.
XLM Derivatives Reach Unprecedented Heights
Speaking of all-time highs, XLM achieved a new record in a critical area that contributed to the recent surge in demand. XLM’s open interest on exchanges reached as high as $443.99 million in the past 24 hours.
This marks the highest level of open interest ever seen for the cryptocurrency.
By comparison, the previous peak for open interest was $180 million in April 2021. According to Coinglass, XLM’s derivatives trading volume reached an impressive $10.17 billion in the last 24 hours.
The significant spike in open interest coupled with strong spot demand created optimal conditions for a rapid rally. Additionally, other factors may have played a role in the sudden shift in sentiment.
Stellar Lumens Positioned to Support the Federal Reserve’s FedNow Initiative
Recent reports revealed that XLM’s native blockchain, Stellar Lumens, will play a role in supporting the FedNow initiative. This development implies that the network could experience a substantial increase in utility, potentially leading to higher demand for the token.
This news could have been a catalyst for the surge in demand for XLM and the subsequent rise in its price towards the end of the week.
Moreover, it sets the stage for a potential increase in demand in the weeks ahead, as such announcements often prompt increased holding in anticipation of higher prices.
Nevertheless, a short-term correction might be imminent due to the cryptocurrency being severely overbought at the time of this report.
Despite this, given XLM’s recent performance, there is a possibility that it could continue its upward momentum and enter price discovery territory in 2025, and even earlier.