Stellar (XLM) has experienced a significant surge in volume, reaching its highest levels since May 2021. This uptick coincides with Ripple’s (XRP) unexpected rally to $1 on Saturday, November 16.

XLM’s price also has risen by 30% in the last 24 hours, imitating XRP’s impressive performance. But why is this so? This analysis reveals everything that has to do with this closely-tied movement.

Stellar History with Ripple Remains in Effect

According to data from Santiment, XLM’s trading volume has surged to $2.96 billion as of this writing. This rise in volume clearly indicates growing buying pressure on the altcoin and a noticeable increase in market interest. 

The last time XLM experienced such high volume levels was during the 2021 bull market, a period when cryptocurrency assets saw market-wide rallies.

This spike in volume suggests that investors are becoming more confident in XLM’s potential, especially given XRP’s recent surge. Historically, both altcoins have shared a strong correlation, majorly due to two reasons.

Firstly, Jed McCaleb, the former co-founder of Ripple, went on to co-found Stellar. The two projects share a strong connection, particularly in their focus on blockchain-based cross-border payments, making Stellar’s fundamentals closely aligned with Ripple’s.

As a result, XRP and XLM prices often move in together. Macroaxis data supports this, showing a 90-day correlation coefficient of 0.96. To put this into perspective, the coefficient ranges from -1 to +1. Values closer to -1 suggest a weak correlation, while those nearing +1 indicate a strong link between the assets.

Besides the XLM volume, the altcoin’s Open Interest (OI) is also another metric that experiences a notable hike. High OI indicates that capital is flowing into the market, with new positions being established, reflecting a strong bullish sentiment.

On the other hand, a low OI suggests otherwise. According to Santiment, XLM’s OI has risen to $75.05 million — the highest level since Ripple’s partial win over the US in July 2023. Should the value continue to increase, then XLM’s price might also rise above $0.20.

XLM Price Prediction: Possible Move to $0.24

On the daily chart, XLM’s price initially rallied to $0.22, but it faced rejection at that point. Despite the slight retracement, the altcoin’s value remains above the Ichimoku Cloud. The Ichimoku Cloud is a technical indicator that measures support and resistance and identifies trend direction.

When the cloud is above the price, the trend is downward, indicating a high level of resistance. But in XLM’s case, the cloud is below the value, suggesting strong support that could push the price higher. 

If this remains the case and XLM’s volume continues to rise, then the altcoin could hit $0.24. However, if holders decide to book profits, this might not happen. Instead, XLM’s price could drop to $0.16.

Shytoshi Kusama, the pseudonymous lead developer of Shiba Inu, has called on President-elect Donald Trump to appoint a blockchain advisor in his administration.

The suggestion comes as the newly created Department of Government Efficiency (DOGE) reportedly explores implementing a blockchain-based election system.

Kusama Explains Why Trump Should Hire a Blockchain Advisor

On November 15, Kusama shared concerns about the rumored blockchain election platform reportedly under review by Trump’s team. The rumored system, dubbed “eVote,” is said to involve partnerships with prominent blockchain platforms like Cardano, Hyperledger, Hedera, and X (formerly Twitter). It aims to create a nationwide electronic voting and identity verification solution.

The eVote initiative seeks to combat election fraud by requiring its adoption across all US states. Analysts believe this aligns with Trump’s long-standing emphasis on ensuring election integrity, particularly in light of controversies surrounding past electoral processes.

While the idea has gained traction, Kusama insists that its success depends on integrating Fully Homomorphic Encryption (FHE). This advanced encryption ensures voter data remains secure both on the blockchain and against external threats.

Kusama warned that without FHE, sensitive voter information, such as identities and preferences, could be exposed to decryption attempts by malicious actors. This vulnerability could lead to widespread disruption. He emphasized that encryption must be robust enough to resist quantum computing threats, ensuring both on-chain and off-chain security.

“Without FHE, this concept fails. Here is why. Votes to be protected, not just on chain… encrypted in a way that is quantum proof. Otherwise, bad actor country decodes the votes and publishes wallets & who voted for whom. Chaos ensues,” Kusama explained.

Due to this, the Shiba Inu developer called on Trump to appoint a dedicated blockchain advisor to tackle these challenges. Such an appointment could bridge the gap between technology and public policy.

Notably, industry leaders like Cardano’s founder, Charles Hoskinson, have shown interest in collaborating with government policymakers to develop regulatory clarity and foster blockchain innovation.

If Trump follows through, this move would align with his growing engagement with crypto-focused figures. Recently, he appointed crypto advocates Elon Musk and Vivek Ramaswamy to lead DOGE and nominated Florida Congressman Matt Gaetz, a Bitcoin supporter, as Attorney General. Additionally, Robert F. Kennedy Jr., known for his pro-Bitcoin stance, is set to become the Secretary of Health and Human Services.

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