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Historically, XLM has been highly correlated with the price of XRP.
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In addition, XLM has its own fundamentals that have boosted its price.
Stellar (XLM) has seen an increase of more than 100% in the last 7 days and leads the weekly rise of the Cryptocurrency market.
Thanks to its good performance, XLM climbed to 13th in the ranking of cryptocurrencies with the highest market capitalization.
XLM benefited from the recent price rally of XRPthe digital currency issued by the company Ripple Labs. As reported by CriptoNoticias, XRP trades above $1.30 for the first time after three years.
The rise in the price of XRP has renewed interest in XLM, as both cryptocurrencies share a similar purpose and technology: offer fast and affordable cross-border payments.
In that sense, another factor to highlight is that both XRP and XLM are attached to the ISO 20022a global standard for financial messaging that facilitates interoperability between different financial systems. This allows for efficient data exchange between financial institutions.
Their adherence to this standard facilitates their integration into the global financial ecosystem and positions them as important players in the future of cross-border payments.
It is within this framework that the price of XLM rose to $0.62 in the last 7 days. At the time of publication of this note, its price is $0.48.
While it is true that it is still far from $0.9, the all-time high (ATH) reached in 2018, This growth has revitalized market interest in the asset.
XLM quote from 2021 to November 27, 2024. Source: TradingView.
Likewise, it must be clarified that, beyond its relationship with Ripple’s digital currency, XLM has its own fundamentals that have generated upward pressure on its price.
Institutional interest in XLM
Renowned companies such as Mastercad and Franklin Templeton have integrated the Stellar network into their operations. These alliances open adoption and use opportunities for XLM.
As CriptoNoticias reported, Mastercard is using the Stellar network in your Crypto Credential solutiona tool designed to verify interactions between users and companies. This innovation allows users to send cryptocurrency using email addresses, simplifying the process and making it more accessible.
Investment firm Franklin Templeton, meanwhile, announced plans to manage assets for more than 1.7 billion dollars through the Stellar network.
Another factor to take into account is that Grayscale, a digital asset management firm, filed last week with the United States Securities and Exchange Commission (SEC) the form 10-k of the Grayscale Stellar Lumens Trust (XLM)an investment product that offers investors exposure to the assetcorresponding to the fiscal year that ended September 30, 2024.
The Form 10-k is an annual report that Grayscale must file with the regulator to detail the financial, operational and fund management activities of the Grayscale Stellar Lumens Trust (XLM).
The document allows investors to evaluate the financial health and future prospects of the financial product.
During the year ending September 30, the Grayscale Stellar Lumens Trust lost $1,352 as the price of XLM fell from $0.11 to $0.10. In addition to the depreciation of the asset’s price, the fees paid to the trust sponsors are added.
However, despite this loss, the investment fund’s assets rose 28%, reaching $10,574. This was thanks to the 34 million tokens, valued at more than $3,000, that were added to the trust, resulting in a net increase in the total assets of the Grayscale Stellar Lumens Trust.
Furthermore, it is worth noting that recently 20,100 shares of this fundwhich represent a total of 1,732,154 XLM, the equivalent of more than 333,048 dollars.
This favors the price of the asset for two reasons. On the one hand, by issuing more shares, the fund can attract more investment and thus increase the liquidity of the cryptocurrency it manages. Which generates demand and, therefore, an increase in the price of XLM in this case.
On the other hand, the issuance of shares allows new investors to participate in the fund, which expands its base and increases visibility and trust in XLM-related products.
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