Can XLM repeat this bitcoin trend and climb to $ 3?
September was an all-round bullish month for cryptocurrencies as altcoins took advantage of the ecosystem upgrade and bitcoin skyrocketed. In fact, over the past month the Stellar network has made laudable developments thanks to a number of partnerships with central banks and institutions around the world to develop CBDCs.
Just last week, MoneyGram International, Inc., one of the largest money transfer services in the world, announced a partnership with the Stellar Foundation to use USDC for instant, cheaper transactions. In addition, the network has partnered with Visa for Techstars and is pioneering the development of sustainable and inclusive financial systems.
Stellar is also involved in the development of stablecoins (VCAD) in Canada, where VCAD is being developed by Stablecorp and VersaBank on the Stellar blockchain. But that’s not all. Stellar Lumens is also working on the development of the ecosystem as Protocol 18, which enables AMM creation on the network, is coming soon.
Undoubtedly, news of partnerships and ecosystem-oriented development has increased the social volume and price of the coin. In fact, on October 17th, XLM tested its recent multi-week high of $ 0.4 along with high social volume.
XLM price (green) and social volume (blue) | The source: Sanbase
Although XLM had high monthly and quarterly ROI, in 2018 the price is still 63.4% lower than ATH’s. This rally looks different, however, and XLM’s chances of hitting ATH are very high, according to a number of analysts.
Is XLM following Bitcoin’s rally?
What’s noteworthy is that the XLM / BTC pair looked pretty good at first and had high trading volume. Good volume accumulation can drive up the price of XLM.
XLM 4-Hour Price Chart | Source: trade view
Analyst DLinkBull emphasize that XLM will see a gain of nearly 11,000% on the weekly chart, just like Bitcoin in 2017. That would bring XLM to nearly $ 3 by the end of this bull market. Notably, XLM posted a gain of nearly 58,000% in the previous cycle, so being able to get another 11,000% won’t be too difficult for this altcoin. In fact, on March 13, 2020, the XLM price was 1,067% above the cycle low.
Also, the chances of further uptrend for XLM look good, but the sharp decline in development activity is a worrying trend. XLM’s development activity is at an all-time low at the time of writing. Additionally, the percentage of total whale stablecoins supply of more than $ 5 million was at an all-time high on October 13 and has declined slightly since then.
Development activities (green) and Percent of total stablecoin supply (pink) | The source: Sanbase
XLM – the 22nd place coin competes with XRP – the 6th place coin by market capitalization to dominate the central bank’s market share for digital currencies. Once the Ripple SEC case is over and XRP is back in the game, XLM could face significant headwinds in the market.
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