Stellar price went parabolic on Friday, Nov. 29, as its DeFi ecosystem boomed and its futures open interest reached a record high.
Stellar Lumens (XLM) surged to an intraday high of $0.5510, marking its highest level since Monday. This represents a 27% increase from its weekly low, bringing its market cap to over $16 billion.
Stellar’s rally mirrored that of Ripple (XRP), which jumped by over 20% as its demand jumped. The two coins have a close correlation because of their role in the cross-border payment industry.
Its most recent quarterly report showed that Stellar handled 103 million payment transactions, making it the second-biggest blockchain after Solana (SOL). This popularity is because of its substantially low fees compared to its competitors. Its average fee is $0.000014 compared to Solana’s $0.004473. Stellar’s network is also fast, with its time to finality being about zero seconds.
Meanwhile, data shows that Stellar’s total value locked in the Decentralized Finance industry has jumped to a record high of $60.6 million. With Franklin Templeton’s fund assets included, Stellar has over $300 million in assets.
The network’s assets in DeFi are much lower than in other chains like Base and Sui because it is a relatively new project. Soroban, its layer-1 network was launched a few months ago and is seeing strong growth.
Stellar’s futures open interest has also surged, reaching $371 million, just below its weekly high of nearly $400 million.
XLM price could double
The weekly chart shows that the Stellar Lumens price has jumped sharply in the past few weeks. It has crossed the important resistance level at $0.1945, its highest point on June 10. Moving above that level was important because it was the neckline of the double-bottom pattern at $0.076.
The coin has also jumped above the key resistance at $0.4400, its highest swing in November 2021. Also, it has moved above all moving averages, meaning that bulls are in control for now.
Therefore, with Stellar being highly overbought, there is a risk that it could reverse soon. However, a move above the key resistance level at $0.6370, its highest level last week, will point to more gains, potentially to its all-time high of $0.7960. If it crosses that level, it will jump to $1, doubling from the current level.
This bullish view will depend on whether Bitcoin continues its strong uptrend and crosses the key level at $100,000.
This article first appeared at crypto.news