Why did the price of Stellar (XLM) increase this week?

Stellar's pre-announcements may have led traders to create multiple scenarios for potential XLM developments, but their impact on price of XLM could be short-lived. .

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The value of the Stellar token saw a notable 11.5% increase between September 2 and September 8, something new given that Bitcoin and most altcoins are down for the week. This rise occurred after Stellar (XLM) tested the $0.113 support level, which marked its lowest point in the last eight weeks. The price increase follows a preliminary announcement made by the Stellar organization on social media.

While the announcement was somewhat cryptic, it hinted at something big happening on September 12, with phrases like "something cool coming" and "change" on the horizon.

XLM price in USD at Bitfinex, 12 hour turnaround. Source: TradingView

Most recently, on September 7, Stellar further raised expectations by discussing a potential partnership. However, like the previous announcement, no specific details were provided, with only words such as "brand" and "real world" being used, suggesting a possible rebranding and shift towards assets from the real world (RWA) like stocks, bonds and real estate. .

Caroline Pham, one of the five commissioners of the Commodity Futures Trading Commission, emphasized on July 17 that recent court decisions regarding the classification of cryptocurrency assets would ultimately lead to greater regulatory clarity. Pham also highlighted the importance of RWAs and highlighted the opportunities for modernizing financial markets through the tokenization of money market funds on blockchain technology.

No, Elon Musk is unlikely to come and save XLM

Unfounded rumors are circulating...