Stellar (XLM) surges 60% in 24 hours: network effect and exchange flows to blame

The Stellar network (XLM), an open-source blockchain dedicated to low-cost cross-border transfers, saw a spectacular rise of 60% in less than 24 hours, according to market data. This performance comes amid renewed interest in decentralized payment solutions, while the network's Total Value Locked (TVL) stands at 23.77 million dollars , down 8.1% over 7 days. Stellar, co-founded in 2014 by Jed McCaleb and Joyce Kim, is managed by the Stellar Development Foundation, a non-profit organization. Its CryptoScore reaches 75/100 , reflecting moderate adoption but solid infrastructure. What Happened The price of XLM surged 60% in 24 hours, rising from around 0.15 USD to 0.24 USD , according to market data. A whale transfer of 2.13 million dollars in XLM was recorded, fueling concerns about short-term selling pressure. Meanwhile, exchange flows show a net outflow of 12.3 million dollars in XLM over the last 24 hours, suggesting accumulation outside centralized platforms. The market capitalization of XLM is 5.17 billion dollars , with a 24-hour trading volume of 123.80 million dollars . Stellar released 7 software updates in 90 days , indicating sustained development activity. Two tier-1 audits were conducted by Trail of Bits, strengthening the technical credibility of the protocol. No official announcement has been made to explain this sudden rise, leaving room for speculation about institutional adoption or undisclosed partnerships. Why This Matters The 60% rise in XLM in 24 hours pushed its CryptoScore close to that of XRP (71/100), although the latter remains far more capitalized ( 88.56 billion dollars ). Trading volume also increased, rising from 80 million dollars to 123.80 million dollars in 24 hours, signaling renewed interest. This performance could reignite interest in blockchains focused on cross-border payments, a segment often overshadowed by Ethereum Layer-2 solutions or DeFi protocols. Investors may reassess projects like Stellar against alternatives like Ripple (XRP), whose market capitalization remains significantly higher. XRP, with a market cap of 88.56 billion dollars , remains a dominant player in this segment. Stellar uses a consensus mechanism called Federated Byzantine Agreement (FBA) , enabling fast transactions (2 to 5 seconds) and near-zero fees. This mechanism relies on a network of validator nodes selected by trusted organizations, reducing centralization risks while maintaining high security. Risks and Limitations The whale transfer of 2.13 million dollars could indicate a profit-taking intent, especially if whales seek to liquidate their positions after the rise. No official announcement justifies this rise, increasing the risk of correction if speculation does not materialize. Stellar faces increased competition, particularly from Ripple (XRP), which benefits from broader adoption and a significantly higher market capitalization, as well as centralized solutions like SWIFT or stablecoins (USDC, USDT). To Watch Investors should monitor the 0.20 USD level, which could serve as support in case of a correction. Closing above 0.25 USD could confirm the upward trend. Any official announcement from the Stellar Development Foundation or an institutional partnership could strengthen the credibility of the movement.