After the market completely avoids VC coins, it seems to have returned to the feeling of 2017. Bitcoin is now about to break through 100,000, a milestone that many are waiting to achieve. With XRP leading the way yesterday, traditional coins are about to see a revival, and the signals for altcoins returning are gradually strengthening!
Since November:
XRP surged from 0.5 to a maximum of 1.63, a rise that set a three-year historical high!
ADA rose from 0.33 to 1.15, an increase of 248%!
However, today we welcome a rising star: XLM has broken through $0.45, with a 24-hour increase of 51.4%. In the past 7 days, it has risen by 122%, becoming the second-highest asset in terms of growth among the top 100 cryptocurrencies.
The performance of XLM is to some extent driven by XRP. When the DEXX statistical data began compensation, it started to rise, but the payment technology of XLM makes blockchain a reformer in the financial industry. The PayFi concept has always had opportunities, and XLM, XRP, ADA, AGO, and Habr, the five tigers of payment, will still have great potential in the future!
What is XLM?
Project Introduction:
Stellar is an open network for storing and moving funds. Stellar makes it possible to create, send, and trade digital representations of various forms of currency: dollars, bitcoins, etc. Its design allows all financial systems in the world to work together on a single network.
Tags: Infrastructure Layer1 Established: 2014
- Trend of heat value changes -
Why the surge:
1. The cryptocurrency market sector continues to show an overall upward trend, with the PayFi sector leading the way, seeing a 24-hour increase of 21%; among them, notable performances include Ripple (XRP) rising by 25.75% and Stellar (XLM) rising by 19.59%.
2. Many people are aware of the news that SEC Chairman Gary Gensler is expected to step down on January 20, 2025. Analysts predict that PayFi will strengthen and maintain an upward trend in the long term.
3. Benefit from the passive impact of XRP's victory in the SEC lawsuit against Ripple.
4. In recent days, Stellar's DeFi TVL has also soared significantly: TVL increased by 75% last week. Although the total locked amount is only $38 million, Stellar was the best-performing DeFi chain among the top 100 chains last week.
Why is the PayFi concept rising?
Before understanding, let's clarify the concept:
PayFi (Payment Finance) is a relatively new concept that integrates payment and decentralized finance (DeFi), first proposed by Lily Liu, chair of the Solana Foundation, defined as a new financial market built around the time value of currency.
The recent PayFi summit was also sponsored by Stellar (XLM) and Solana. The founder of Huma once said that Polygon is not the most suitable public chain for us. Ultimately, we chose Solana and Stellar because they have focused on the payment field from the very beginning, and their technical architecture is very suitable for the business they are doing.
What does PayFi solve?
Web3 payments are a new type of payment method that does not rely on traditional financial institutions but transfers value directly between users through decentralized networks. This can greatly simplify the payment clearing process, making payments fast, cheap, and accessible, making it the best choice to meet the current payment needs of the public.
If Web3 payments primarily use the money we currently have for transactions, then PayFi allows us to use tomorrow's money for transactions.
The prototype of the PayFi track has emerged.
Why do I say this? RWA is a major hotspot in this cycle, but the PayFi concept was only proposed in July this year, and it became widely spread under the heat of the leading project Huma Finance's $38 million financing in September. Now, the cryptocurrency market is expected to reach $44.29 billion by 2024 and $64.41 billion by 2029, while the global payment system is rapidly shifting from cash to digital payments, with crypto payments gradually becoming an important force in digital payments as a newly emerging innovative payment method.
This year's Token2049 in Singapore, the PayFi Summit event also showcased 12 projects in the PayFi track and the corresponding underlying modular stack technology, intending to further lower the development threshold of projects. According to incomplete statistics, in the entire payment field, just credit cards, trade financing, cross-border payments, etc., together account for over $40 trillion in markets, while the current PayFi is merely expanding into the long-tail market that traditional finance has overlooked.
Overall, with the rapid development of Web3 and decentralized finance, PayFi is expected to become a key infrastructure in the future digital economy, meeting the multi-layered needs of digital payments, financial innovation, and global users.
Will Stellar continue to reach new highs?
Stellar (XLM) makes a strong comeback, rising for three consecutive weeks, reaching its highest level since 2021. Its trend coincides with the continuous rise in the price of Ripple, which has risen to $1.5, the highest level since May 31. This rebound is attributed to investors' expectations that the U.S. Securities and Exchange Commission will end its lawsuit against Ripple Labs.
Ripple and Stellar have two important similarities. As mentioned earlier, Stellar aims to disrupt the payment industry. Ripple is also an old star in this field, helping institutions remit money globally in a simpler way, while Stellar's goal is to facilitate peer-to-peer payments. According to the progress of XRP's ETF application, once successful, it will drive a new dimension in the payment industry! Investors also expect that some companies will apply for Stellar and XRP ETFs in 2025.
From a connectivity perspective, the price movements of XRP and XLM have long been correlated with the market. XRP soared to the $1 mark on Saturday, reaching a three-year high. Driven by favorable regulatory developments and increased whale activity, XRP's price has recently surged, positively impacting XLM as well.
From a structural perspective, the price of XLM may sharply reverse as it has become extremely overbought. The relative strength index has surged to 83, while the two lines of the stochastic oscillator are approaching 100. The rising oscillator indicates strong momentum, but such fluctuations often precede sharp declines. In the medium to long term, the PayFi concept that XLM is in will gradually become the narrative, and there may be more increases, possibly reaching new highs of $0.64 and $0.80 in the coming weeks.
