Can Stellar (XLM) Price Reach $1 Amid Soaring DeFi TVL and Open Interest?

Stellar Lumens (XLM) witnessed a sharp price surge on Friday, November 29, as its growing decentralized finance (DeFi) ecosystem and record-breaking futures open interest fueled bullish sentiment.

Stellar’s Remarkable Rally

XLM soared to an intraday high of $0.5510, marking a significant 27% rise from its weekly low. The rally boosted Stellar’s market capitalization to over $16 billion, highlighting renewed investor interest.

The price increase aligns with a broader surge in the cryptocurrency market, including Ripple’s XRP, which gained over 20% due to heightened demand. The strong correlation between XLM and XRP stems from their shared focus on cross-border payment solutions.

Stellar’s Competitive Edge

Stellar’s growth is supported by its low transaction fees and fast processing times, making it an attractive alternative in the blockchain space.

• Low Fees: Stellar’s average transaction fee is $0.000014, significantly lower than Solana’s $0.004473.
• Speed: Stellar boasts near-instant finality, enhancing its appeal for real-time payment processing.

The network’s utility is evident in its quarterly performance, which recorded 103 million payment transactions, positioning Stellar as the second-largest blockchain by payment volume after Solana.

DeFi and Open Interest Surge

Stellar’s presence in the DeFi space is expanding rapidly. Its total value locked (TVL) in DeFi has reached an all-time high of $60.6 million.

When factoring in Franklin Templeton’s tokenized fund assets, Stellar’s total assets under management exceed $300 million.

Although its DeFi assets are modest compared to established blockchains like Base and Sui, Stellar’s relatively new layer-1 solution, Soroban, is experiencing robust growth since its recent launch.

Additionally, XLM futures open interest has surged to $371 million, nearing a weekly high of $400 million. This rise in futures activity underscores increasing investor confidence in Stellar’s price trajectory.

XLM Price Outlook: Can It Hit $1?

Stellar’s price momentum is bolstered by strong technical signals:

• XLM has breached key resistance levels, including $0.1945, marking the neckline of a previous double-bottom pattern.
• The coin also surpassed $0.4400, its November 2021 swing high, and moved above all major moving averages, signaling bullish dominance.

Despite these gains, analysts caution that XLM is entering overbought territory, increasing the likelihood of a near-term correction. However, if XLM breaks through the critical resistance at $0.6370, further gains could push the price toward its all-time high of $0.7960. Beyond that, a rally to $1—a doubling of its current value—appears possible.

This bullish scenario heavily depends on Bitcoin maintaining its upward trajectory and surpassing the $100,000 milestone.

Conclusion

Stellar’s recent price surge, coupled with its growing DeFi ecosystem and rising futures open interest, has positioned it as a standout performer in the crypto market. While market volatility remains a factor, XLM’s strong fundamentals and technical setup indicate the potential for further upside, with $1 emerging as a realistic target.