XLM, the token by Stellar, saw a considerable increase in price by about 11.5% between September 2nd and September 8th. The increase is against the general trend as Bitcoin, along with the majority of other altcoins, has been bearish through the week. The price surge took place following a test of the XLM token of the support level of $0.113. It was also the lowest price point of the token over the previous 8 weeks.
The Possible Theories Behind XLM’s Surge
The Stellar organization had made an expectant announcement before the upswing in price took place. The announcement may be considered cryptic, however, it was talking about something significant that will take place on September 12th. The announcement included phrases such as “change” and “something cool is dropping”.
Furthermore, on September 7th, Stellar heightened expectations even more when they announced a possible partnership. However, there were no particular details provided, just like the previous announcement. This time around the noticeable keywords were “real world” and “brand”. The suggestions included a potential rebrand as well as a move towards assets in the real world (RWA). This would include real estate, stocks, and bonds.
A Commodity Futures Trading Commission commissioner, Caroline Pham, explicitly highlighted on July 17th that recent decisions made in the court related to how cryptocurrency assets are classified will eventually result in regulatory clarity. At the same time, Pham further highlighted RWA’s importance.
Apart from these, there was an unfounded rumor circulation about how Musk’s X, which was previously known as Twitter, could be looking into integrating XLM. The social media network acquired a license for transmitting currency on August 28th from the regulators. Before the most recent announcement, 6 other states had also given X their approval regarding the same. However, even if X has such intentions, XLM is not in the race to be in the most valuable 20 tokens, so it is unlikely it would be one of those selected.