Why is Stellar (XLM) price up this week?

Stellar (XLM) token experienced a notable 11.5% increase in value between Sept. 2 and Sept. 8, a novelty given that Bitcoin and most altcoins are down for the week. The surge came after XLM tested the $0.113 support level, which marked its lowest point in the past eight weeks. The price upswing followed a preliminary announcement made by Stellar Org on social media. 

While the announcement was somewhat cryptic, it hinted at something significant occurring on Sept. 12, with phrases like “something cool is dropping” and “change” on the horizon.

More recently, on Sept. 7, Stellar Org further heightened expectations by teasing a potential partnership. However, similar to the earlier announcement, no specific details were provided, with only words like “brand” and “real world” used, suggesting a possible rebranding and a shift towards real-world assets (RWA)like stocks, bonds and real estate.

Caroline Pham, one of the five commissioners of the Commodities Futures Trading Commission (CFTC), emphasized on July 17 that recent court decisions regarding the classification of cryptocurrency assets would ultimately lead to regulatory clarity. Commissioner Pham also stressed the significance of RWAs and highlighted the opportunities for modernizing financial markets through the tokenization of money market funds on blockchain technology.

No, it’s not likely that Elon Musk is coming to save XLM

Unfounded rumors circulated regarding Elon Musk’s X (formerly Twitter) could potentially integrate XLM after the social network obtained a currency transmitter license from regulators on Aug. 28. It’s worth noting that X had previously received approvals from six other states prior to this latest announcement.

Elon Musk will build X into the worlds most valuable financial institution

He is acquiring all the necessary licenses to integrate CRYPTO into Twitter/X

My hope is that $ETH, $XRP or $HBAR or even $XLM is one day involved pic.twitter.com/YjRTxF0pMz

— MASON VERSLUIS (@MasonVersluis) August 31, 2023

Moreover, it’s important to note that even if X decides to integrate multiple cryptocurrencies, XLM’s current market capitalization of $3.4 billion falls short of making it a top 20 contender. A similar analysis, using Messari Crypto’s “real volume” ranking, positions XLM as 20th in terms of trading volume, trailing behind competitors such as Bitcoin Cash (BCH), Sui (SUI), Litecoin (LTC), and Ripple’s XRP (XRP).

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