Stellar’s native cryptocurrency coin Lumens (XLM) recently surged in price by as much as 11% in the wake of its partner IBM signing up 6 banks to use the crypto for cross-border remittance payments.
Following the news of IBM’s 6 banking partnerships to use Stellar and issue stablecoins, the XLM cryptocurrency saw a surge in price early Monday morning as the price of XLM moved from $0.108 to $0.118 in a matter of hours.
Following the initial pump in price, Stellar’s XLM retraced a bit but is now holding $0.113 as support after being tested multiple times throughout the day.
IBM Announcement and Coinbase Listing Push Stellar (XLM) to Recent Highs
As previously reported by IIB, Stellar’s partner IBM partnered with 6 international banks to use the Stellar-powered blockchain network to issue stablecoins and use Stellar’s XLM cryptocurrency for cross-border remittance payments.
In addition to solely using XLM for remittances, IBM noted that its new banking partners can use XLM as a bridge currency when it’s difficult to trade the different banks’ fiat-backed stablecoins for one another. Therefore, Stellar’s XLM crypto finally has a new use case, which is driving the hype behind its recent bullish price move.
Another factor attributing to Stellar’s XLM price pump is the XLM Coinbase Pro listing on March 13. Just prior to this announcement, XLM was trading at $0.102 and then experienced a small pump up to $0.111.
Many people have speculated that Coinbase was yet again guilty of insider trading prior to XLM’s Coinbase Pro listing announcement. This has been speculated because the price of XLM was as low as $0.08 just 9 days before the Coinbase Pro listing and climbed substantially to a high of $0.106 prior to the announcement.
Where Will XLM’s Price Go Now?
XLM has already experienced a 30% price rise from its low at the beginning of March to its most recent high on March 18. However, the cryptocurrency may still be in for a strong bullish move based purely off speculation that all of IBM’s 6 partnered banks will use XLM for cross-border remittance payments.
Another way of looking at it is that IBM’s 6 partnered banks may prefer to stick with their own fiat-backed stablecoins. Therefore, it’s very difficult to say which direction the price will go, much like the overall state of the cryptocurrency market.
Do you think Stellar’s XLM will continue to rise in price for the foreseeable future? Let us know what you think in the comment section below.