What is Stellar (XLM)?

Stellar is a decentralized protocol focused on cross-border payments and asset transfers, founded in 2014 by former Ripple co-founder Jed McCaleb. Its native token is XLM, primarily used for network transaction fee payments and bridging value transfers between different assets.

Stellar’s goal is to enable individuals, institutions, and financial organizations to achieve fast settlements globally through an efficient and low-cost network, especially active in the exchange field between fiat currencies and digital assets.

The core news behind this round of pump

Figure:https://www.gate.com/trade/XLM_USDT

Stellar (XLM) recorded a rise of over 5% on July 15, with strong intraday performance. This wave of pump was mainly driven by the following factors:

1. The market is expected to undergo a significant transformation: investors are keeping an eye on the upcoming macroeconomic turning point or favorable regulatory developments, driving funds into the relatively stagnant mainstream cryptocurrencies.
2. Potential new collaboration or technology upgrade for the Stellar Foundation: Although not officially announced, market rumors suggest that Stellar may reach a collaboration with a traditional payment platform, which has stimulated market sentiment.
3. Technical chart breakout: XLM has broken through key moving average resistance on the daily chart, triggering short-term bullish entry.

Comparison analysis between Stellar and XRP

Stellar and XRP are often compared due to their similar founding backgrounds. The recent 5% pump of XLM stands in stark contrast to the relatively stagnant performance of XRP, and the market has several reasons for its optimistic view on Stellar:

• Stellar emphasizes decentralized governance, making it more acceptable to regulators compared to XRP.
• The inflation mechanism of XLM was canceled in 2019, making the supply more stable.
• The recent expansion of Stellar in the African and Southeast Asian markets is seen as a significant application progress.

Although XRP’s interim victory in the US SEC lawsuit has boosted market confidence, XLM is comparatively more flexible in terms of technology and application expansion.

The future trend of XLM and investment advice

From a technical perspective, XLM has successfully stood above the critical support level of 0.10 USD. If it can break through the previous high of 0.12 USD, it is expected to challenge higher regions. From a funding perspective, the on-chain trading activity and wallet growth also support its upward trend.

For investors, it is important to watch if XLM can hold steady at 0.11 dollars in the short term. If it aligns with a stronger overall market, it could serve as a part of the mainstream coin rotation strategy. However, attention should be paid to the overall market sentiment and the influence of BTC’s trends to avoid the risk of pullbacks from chasing rises.

Summary

Stellar (XLM) this round of pump reflects the market’s recognition of its fundamental potential. Against the backdrop of technical breakthroughs and capital rotation, it has outperformed XRP, reigniting investor interest. If cooperation can be realized or applications expanded in the future, XLM may welcome greater rise.