After a rather turbulent past few days, Stellar Lumens (XLM) seems to be out of the woods for now with a more than 7% positive correction. At the moment, XLM is the best performing top 10 cryptocurrency, outshining Litecoin.
According to data from CoinGecko, XLM has a market capitalization of $1.66B which exceeds Tron’s market cap by $133,575,573, therefore assuming the position of the 10th largest digital coin as Tron (TRX) follows behind.
Libra’s hearings before Senate opened a Pandora’s Box of downward correction for XLM. Subsequently, XLM dipped to $0.075. Today, however, the digital asset is soaring. At press time, XLM is trading at $0.084896, with the market flashing green.
What’s This Price Surge Being Attributed To?
Yesterday, we reported that Poloniex exchange had distributed approximately 1.2 million Stellar Lumens to users as part of the Stellar Inflation Reward. Poloniex exchange had reported this via a tweet. Many believe that this has certainly positively impacted the price of XLM.
Another possible catalyst is the collaboration between the Stellar Network and the IT behemoth, IBM. Earlier this year, IBM and the Stellar Network launched a joint project dubbed IBM Blockchain World Wire. After its deployment, Stellar Network’s native coin, Lumens (XLM) recorded moderate gains.
Now most recently, CNBC news outlet revealed that IBM had reported “better than expected” second-quarter earnings as of Wednesday, July 17. This resulted in a 4% surge in IBM’s share prices.
Now you must be wondering how IBM earnings impact XLM’s prices. Well, IBM’s performance and Lumens price move in tandem. This means that the surge in share prices for IBM could have excited the XLM community leading to a surge.
Late last month, XLM’s price slipped by 8.2% within 24 hours, following the exit of Jesse Lund and CTO Stanley Yong from IBM. Lund was the driving force behind the World Wire payment network, as CoinDesk reported. This goes further to indicate the undeniable interrelationship between IBM and Stellar Lumens (XLM).
Price Upswing Not A Long-term Bullish Signal, But It’s Great For XLM’s Reputation
Albeit a 7% surge doesn’t necessarily signal a long-term bullish bias, it’s crucial to acknowledge that such a short-term rally portrays a great picture for XLM among its traders and investors.
This is a great affirmation to XLM investors that it is still a viable investment, pumping prices by 7% over a 24hr period, outpacing top cryptocurrencies like bitcoin (BTC), ETH and XRP.