Stellar's native cryptocurrency [XLM] has made headlines with its astonishing rise. Its performance so far this month has propelled it from an undervalued currency to one of the best-performing currencies of 2024.
XLM rose 61% from its lowest to highest price on Saturday, November 23, an astonishing increase. This has expanded its weekly increase to 235%.
So far this month, its price has risen from a low point to a high of 600%, becoming one of the best-performing top tokens.
Although XLM seems to be defying gravity, its parabolic performance is also notable for another major reason. At the beginning of November, the trading price of this cryptocurrency was close to its historical low. However, an impressive rebound has brought it closer to its historical high of 2021.
XLM derivatives soar to historic levels.
Speaking of all-time highs, XLM has indeed set new highs in a key area that supports the recent tsunami of demand. In the past 24 hours, the open contracts of XLM on exchanges surged to $443.99 million.
This is the highest level of open contracts reached in the history of this cryptocurrency.
In comparison, the previous peak of open contracts was $180 million in April 2021. According to Coinglass data, XLM derivatives trading volume surged to $10.17 billion in the past 24 hours.
The significant rise in open contracts coupled with strong spot demand is a perfect combination for a explosive rebound. However, other factors may also have contributed to the sudden shift in market sentiment.
Stellar supports the FedNow system of the Federal Reserve.
Just two days ago, it was reported that XLM's native blockchain Stellar Lumens would support the FedNow program. This means that the network's utility may increase significantly, which could also boost demand for the token.
This could be one of the reasons for the surge in demand for XLM and the price increase over the weekend.
This also indicates that demand may increase in the coming weeks. This is because such news may encourage more people to hoard in anticipation of a price increase.
Nevertheless, there is still a possibility of a short-term pullback. The main reason is that, at the time of writing, the cryptocurrency is severely overbought.
However, based on XLM's recent performance, it may extend its price actions into the price discovery phase in 2025 or even earlier.
