XLM, the native cryptocurrency of the Stellar blockchain, witnessed an impressive surge in recent weeks, soaring by a remarkable 104% to reach $0.196 on July 13. However, as profit-taking ensued, the price retraced.
Now, the crypto token is staging another fresh rally, driven by Ripple’s recent partial legal win against US Securities and Exchange Commission (SEC). A US judge’s ruling that XLM is not a security has given a significant boost to Stellar’s value, ushering in a new wave of optimism for the cryptocurrency.
Notably, XLM is the best-performing crypto asset on daily charts as of July 19, surging by nearly 10% during the mentioned period at the time of publication. Several other major cryptocurrencies have also ranked in the top 5 in terms of 24-hour gains, including Maker (MKR), XRP (XRP), BitDAO (BIT), and Synthetix (SNX).
XLM price analysis
At press time, Stellar was trading at $0.14, up 9.12% on the day.
The crypto token is also the second best-performing asset over the past week, surging more than 40%, only behind XRP’s 65% gain.
On the month, XLM is up over 70%, adding more than $1.55 billion in market cap over the period.
Why is XLM soaring?
XLM’s magnificent price rise over the past several days can be largely attributed to Ripple Labs’s landmark win against the SEC after a US judge ruled that the blockchain firm did not violate securities regulations by selling its XRP token on public exchanges.
The ruling sent XRP flying, while also propelling prices of other altcoins, as well as Bitcoin (BTC). Prior to Ripple’s legal victory, another factor that fueled XLM’s extended bullish momentum was Coinbase’s recent integration with Stellar. The crypto exchange now fully supports USDC deposits and withdrawals through the Stellar network.
In addition, recent speculations suggested that Stellar was recognized as a potential facilitator for the blockchain component of the FedNow Payment System – an instant payments service developed by the US central bank that aims to integrate traditional banking with decentralized finance (DeFi).
Interestingly, Stellar was founded by Jed McCaleb, an American programmer and entrepreneur who also co-founded Ripple.
Seeking further insights to find out whether Stellar is likely to maintain its momentum, Finbold retrieved the price estimates of the crypto community at CoinMarketCap to evaluate their predictions on the price for XLM at the end of July.
However, the community, which has a historical accuracy of 91% over the past 6 months, offered a bearish price estimate of $0.09724 on July 31, implying a 35% drop from the current price.
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