Stellar Lumens (XLM) Surges As Bitcoin Dominance Lifts Altcoin Market

Stellar Lumens XLM/USD is rocketing higher Friday afternoon, posting double-digit gains in a broad-based rally sparked by Bitcoin’s BTC/USD historic price movement. Here’s what investors need to know.

What To Know: This impressive jump comes in sympathy with Bitcoin, which has surged to a new all-time high of over $118,000. The decisive move by the market leader is creating a powerful tailwind for the entire digital asset sector, pulling prominent altcoins like Stellar along for the ride.

Bitcoin’s record-setting ascent is being fueled by significant and sustained institutional investment, highlighted by massive inflows into U.S.-listed spot Bitcoin ETFs. This influx of capital from major financial players is boosting confidence across the cryptocurrency ecosystem as a whole.

Historically, when Bitcoin clears previous highs, it triggers a wave of bullish sentiment that extends deep into the altcoin market. Investors, emboldened by Bitcoin’s strength, often look to diversify into other established projects with clear use cases.

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Stellar on Friday afternoon has become an attractive target for this rotational flow of capital. This phenomenon of market sympathy, where the broader market follows Bitcoin’s lead, is the primary force behind Stellar’s sharp price increase for the session.

What Else: Stellar is a decentralized, open-source network designed to facilitate fast, low-cost cross-border payments and asset transfers. It aims to connect financial institutions, payment systems, and individuals, allowing for the quick and reliable movement of money globally.

Its native digital currency is called the Lumen, or XLM. Within the network, Lumens serve a dual purpose: they act as a required anti-spam measure for accounts and are used to pay for transaction fees.

More importantly, XLM functions as a universal bridge asset, enabling seamless conversion between different currencies on the platform, thereby making it easier to trade and send various forms of value across borders without relying on traditional, slower banking systems.

Price Action: According to data from Benzinga Pro, Stellar Lumens is trading higher by 22.3% to $0.370.

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