The post Why XLM Volume Hit 3-Year Peak After XRP $1 Rally appeared on BitcoinEthereumNews.com.

Stellar (XLM) has experienced a significant surge in volume, reaching its highest levels since May 2021. This uptick coincides with Ripple’s (XRP) unexpected rally to $1 on Saturday, November 16. XLM’s price also has risen by 30% in the last 24 hours, imitating XRP’s impressive performance. But why is this so? This analysis reveals everything that has to do with this closely-tied movement. Stellar History with Ripple Remains in Effect According to data from Santiment, XLM’s trading volume has surged to $2.96 billion as of this writing. This rise in volume clearly indicates growing buying pressure on the altcoin and a noticeable increase in market interest.  The last time XLM experienced such high volume levels was during the 2021 bull market, a period when cryptocurrency assets saw market-wide rallies. This spike in volume suggests that investors are becoming more confident in XLM’s potential, especially given XRP’s recent surge. Historically, both altcoins have shared a strong correlation, majorly due to two reasons. Stellar Volume. Source: Santiment Firstly, Jed McCaleb, the former co-founder of Ripple, went on to co-found Stellar. The two projects share a strong connection, particularly in their focus on blockchain-based cross-border payments, making Stellar’s fundamentals closely aligned with Ripple’s. As a result, XRP and XLM prices often move in together. Macroaxis data supports this, showing a 90-day correlation coefficient of 0.96. To put this into perspective, the coefficient ranges from -1 to +1. Values closer to -1 suggest a weak correlation, while those nearing +1 indicate a strong link between the assets. Stellar and Ripple Price Correlation. Source: Macroaxis Besides the XLM volume, the altcoin’s Open Interest (OI) is also another metric that experiences a notable hike. High OI indicates that capital is flowing into the market, with new positions being established, reflecting a strong bullish sentiment. On the…

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Filed under: News - @ November 17, 2024 12:22 pm