Despite the recent negative market trend, XLM, the governance token of the Stellar blockchain, is defying the odds in the crypto market.
According to CoinGecko, the token has experienced substantial gains in all timeframes, with the highest increase seen in the bi-weekly timeframe at nearly 29%.
This recent market rally can be attributed to on-chain developments that have propelled XLM to new heights.
Recently, the official Twitter accounts of Circle and Stellar announced that USDC, one of the largest stablecoins in the market, is now available on the CoinMe wallet. This move significantly expands the reach of both organizations and highlights the advantages of the Stellar ecosystem and potentially give a boost in price to XLM.
ICYMI: #USDC on @stellarorg is now available in the @Coinme wallet. 🔥
Excited to help additional communities experience reduced costs and faster settlements for peer-to-peer transactions. https://t.co/JqS7t4gbbZ
— Circle (@circle) March 28, 2023
Stellar Links With Polkadot
Adding to the bullish momentum, Stellar has now been connected to Polkadot through the Pendulum parachain, which is being touted as the final link between fiat and DeFi.
USDC will also flow between Polkadot and Stellar, further advancing Stellar’s position as a bridge between the traditional financial system and the crypto market. This position was already strengthened by its 2021 partnership with Moneygram, a fiat cash transfer platform.
Stellar’s recent efforts to position itself as a money transfer and payments platform could help restore USDC’s reputation as a safe asset for investors. However, it may take some time for the market to fully regain trust in USDC as a stablecoin, and caution may still prevail.
XLM total market cap currently at $2.8 billion on the daily chart at TradingView.com
XLM: Upbeat In Overcoming Bearish Sentiment
Meanwhile, XLM has encountered resistance at the $0.1129 level, which could lead to potential downside in the coming days. If the bulls succeed in overcoming this resistance, we may see further upside for the token. However, given the current bearish trend in the market, this outcome is uncertain.
For now, monitoring the momentum of the general market would be beneficial for the bulls. As of writing, XLM can enjoy a high correlation with Bitcoin if the latter picks up momentum again. At $0.1097, can XLM bulls continue the rally?
Overall, the XLM team is confident in its ability to navigate the bearish market sentiment and continue to grow in value. By focusing on adoption, technology, and community engagement, they believe that XLM will remain a strong investment opportunity in the cryptocurrency market.
-Featured image from Zipmex