Stellar's Value Surges 38% Reclaiming $10 Billion Valuation

Stellar, a blockchain payment network, has shown remarkable growth over the past month, with its value surging by 38% and reclaiming a $10 billion valuation on May 11. This surge has positioned Stellar among the top 15 cryptocurrencies by market capitalization. Stellar's performance has been particularly impressive when compared to its competitor, Ripple ($XRP), which has a much larger market cap but has lagged behind in terms of price growth over the same period.

On May 11, Stellar processed over 3.3 million transactions with a total fee of just $4,000, showcasing its efficiency. In contrast, Ripple processed approximately 530,000 transfers with over $3,500 in associated fees. Stellar's efficiency is also evident when compared to Ethereum, which has seen over 108 million transactions with an average fee of $1.90, while Stellar's average fee is a mere $0.0015 per transaction. Stellar's user base continues to grow, with over 9.5 million wallets registered, and developer activity is accelerating, with over 630,000 smart contracts deployed on the network as of May 7.

Stellar's growing adoption has attracted the attention of major financial institutions. MoneyGram recently launched "Ramps," an API powered by Stellar that facilitates seamless integration with Circle’s $USDC, allowing users to move money easily in and out of digital wallets. In 2024, Stellar secured high-profile partnerships with companies like Mastercard and Franklin Templeton. Mastercard’s Crypto Credential solution has utilized Stellar’s blockchain for secure asset management, and IBM has collaborated with Stellar to power cross-border payment solutions, particularly in the South Pacific region. These developments have reinforced investor confidence in Stellar, reflected in its price action.

From a technical standpoint, Stellar's price has broken above the 1.618 Fibonacci extension level at $0.3168, now serving as short-term support. The token appears to be in the early stages of a bullish trend marked by higher highs and higher lows. Following a recovery from the $0.24 region, the price has tracked key Fibonacci extension levels and is currently consolidating between the 1.618 and 2.0 levels. The next major resistance lies at $0.3756, a historically relevant level, which could determine whether the rally continues or faces a short-term rejection. If Stellar manages to break above this barrier, the next target is projected at $0.5088, offering a potential upside of over 56% from current levels. However, the Relative Strength Index (RSI) is hovering at 68.89, nearing the overbought zone, suggesting that a short-term consolidation or cooldown may be on the horizon. In case of a pullback, support levels to watch include $0.3168, followed by deeper Fibonacci support at $0.2868 and $0.2569.