Stellar Lumens (XLM), the cryptocurrency that powers the cross-border payments-focused Stellar Network, saw a massive surge on Thursday, bolstered by the news that a US judge had deemed XRP as not meeting the conditions to qualify as a security.
The ruling sent XRP more than 70% up on the day to more than one-year highs, while XLM rallied over 60%.
The Stellar Network was launched by Ripple co-founder Jeb McCaleb in 2014, which could go some way to explain its strong correlation to XRP (which was issued by Ripple in 2012).
Others said XLM’s sharp rally was also a result of a return of animal spirits to the altcoin space.
Either way, XLM was last trading just above $14 per token, nearly 30% down from Thursday’s highs near the $0.20 level, but still close to 50% up from its pre-XRP ruling levels under $0.10.
Price Prediction – Where Next for Stellar (XLM)?
Thursday’s XLM rally saw the cryptocurrency break to the north of two key resistance zones.
Firstly, XLM was able to surge above a downtrend from early 2022 and, secondly, XLM was able to break sharply above the 2023 double top at $0.114.
While profit-taking is weighing on the price on Friday, the bulls are likely to remain in control, with XRP likely to continue performing well in the coming weeks and months.
XLM bulls will be targeting a test of support-turned-resistance in the $0.25 area.
Can Stellar (XLM) Overtake XRP?
XLM’s market cap of just under $4.0 billion is currently less than 10% of XRP’s market cap of more than $40 billion.
So Stellar Lumens has a long way to go to catch up with XRP.
That being said, growth in the Stellar Network is impressive.
Data presented by Stellar Network explorer stellar expert shows that processed operations have surged exponentially in recent years.
Data presented by The Block, meanwhile, shows network activity on the XRP Ledger stagnating over the same time period.
But that stagnation could have been due to uncertainty regarding the SEC’s lawsuit against Ripple.
The XRP Ledger may now go from strength to strength, meaning it could be hard for Stellar Network to catch up.
Regardless, XLM will probably still be a strong performer.
Meme Coin Alternatives to Consider
XLM is a good bet right now for high risk tolerance degens who want to secure near-term gains.
But an even better way to secure near-term upside is via successfully picking out small-cap meme coin gems.
The team at Cryptonews.com spends a lot of time parsing through meme coin projects looking for the best risk-reward opportunities.
Here is a project that they think have a lot of potential.
Wall Street Memes (WSM)
Wall Street Memes, one of the internet’s hottest retail investing communities, rose to prominence in the meme stock craze of 2021 and has recently been expanding its relevance in the cryptocurrency space with the presale of its new $WSM token.
The success of the $WSM presale, which has raised $14.7 million in just over one month, isn’t surprising given the size of Wall Street Memes’ community.
Not only are there 523k hyper-engaged community members on its wallstbets Instagram account, there are another 214k on Twitter and more than 100k across its two other Instagram channels, wallstgonewild and wallstbullsnft.
All told, Wall Street Memes has a 1 million-strong social community of degens, which analysts think all but guarantees that the $WSM token will be listed on tier 1 crypto exchanges like Binance.
With 30% of the token supply being held back for community rewards, it can reasonably be expected that airdrops to holders will be a big part of the ecosystem.
Indeed, the first $WSM airdrop is open now.
Analysts are already predicting big things for Wall Street Memes when it lists on exchanges and you can be a part of it.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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