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The notable growth rate of Stellar network is bolstered by institutional investors seeking to tokenize RWAs and enable cross-border operations.
XLM price has closely followed XRP price action in the past, and both have hinted at potential rally toward price discovery soon.
Stellar (XLM) price has gradually gained bullish momentum in the past six weeks. The large-cap altcoin, with a fully diluted valuation of about $15.1 billion and an average 24-hour traded volume of about $314 million, rallied over 25 percent in the past four weeks to trade about $0.3033 on Wednesday, May 14, during the late North American trading session.
The notable return of FOMO altcoin trading, as evident in the Ethereum price rally against Bitcoin, played a crucial role in the gradual rebound of XLM price. Moreover, XLM’s Futures Open Interest (OI) surged from $112 million on April 14 to about $196 million at the time of this writing
Stellar Network and Institutional Adoption
The Stellar network has grown over the past years to a vibrant web3 ecosystem. Since the launch of the smart contract capabilities through the Soroban upgrade in early 2024, the Stellar network has attracted more institutional investors seeking to tokenize real-world assets (RWA) to explore more global markets.
For instance, several institutional investors led by Franklin Templeton, Circle USDC, IBM, and MoneyGram, among others, have explored RWA tokenization on the Stellar network. At the time of this writing, the Stellar network had over $54 million in total value locked and more than $353 million in stablecoin market cap.
What Next for XLM Price
In the past years, it is evident XLM price action mirrored that of rival Ripple Labs’ XRP. After six years of symmetrical consolidation, both XRP and XLM broke out and signaled the onset of the macro bull rally.
In the daily timeframe, XLM price has already broken out of a falling wedge pattern and now aims at hitting 60 cents in the near term. Moreover, the daily MACD line recently crossed the zero line amid a potential breakout from an inverse head and shoulder (H&S) pattern.