Can XLM price hit $1 as DeFi TVL and open interest soars?

Stellar price went parabolic on Friday, November 29, as the DeFi ecosystem exploded and futures open interest reached a record high.

Stellar Lumens (XLM) rose to an intraday high of $0.5510, its highest level since Monday. This represents a 27% increase from its weekly low, pushing its market cap to over $16 billion.

Stellar’s rise mirrored that of Ripple (XRP), which rose over 20% as demand increased. The two coins have a close correlation due to their roles in the cross-border payment industry.

Its latest quarterly report showed that Stellar processed 103 million payment transactions, making it the second largest blockchain after Solana (SOL). This popularity is due to very low fees compared to its competitors. Its average fee is $0.000014 compared to Solana’s $0.004473. Stellar’s network is also fast, with time to finality around zero seconds.

Meanwhile, data shows that Stellar’s total value locked in the Decentralized Finance sector has risen to a record high of $60.6 million. Including Franklin Templeton’s fund holdings, Stellar has over $300 million in assets.

The network’s holdings in DeFi are much lower than other chains such as Base and Sui, as it is a relatively new project. Soroban’s layer-1 network launched a few months ago and is seeing strong growth.

Stellar’s futures open interest also rose, reaching $371 million, just below its weekly high of nearly $400 million.

Star Open Position | Source: CoinGlass XLM price could double XLM price chart | Source: crypto.news

The weekly chart shows that the Stellar Lumens price has increased sharply over the past few weeks. It has surpassed the key resistance level at $0.1945, the high on June 10. Breaking above this level was important because it was the neckline of the $0.076 double bottom formation.

The cryptocurrency also climbed above the main resistance at $0.4400, the highest rise in November 2021. It has also broken above all moving averages, which means the bulls are in control for now.

Therefore, there is a risk of a reversal in the near future due to Stellar being overbought. However, a move above the key resistance level of $0.6370, last week’s high, would point to more gains, potentially to the all-time high of $0.7960. If it passes this level, it will jump to $1, doubling the current level.

This bullish outlook will depend on whether Bitcoin continues its strong uptrend and breaks the key $100,000 level.