XLM, the native cryptocurrency of the Stellar network, has just wrapped up one of its most explosive weeks, positioning itself for a potentially record-breaking November. The dramatic price swings have left investors eager for more as the token transitions from being undervalued to becoming a frontrunner in the cryptocurrency market, boasting incredible gains throughout 2024.

On Saturday, November 23, XLM achieved a remarkable 61% increase from its lowest to highest trading price, contributing to an astounding overall weekly gain of 235%. Notably, this month alone has seen XLM skyrocket by an impressive 600% overall, placing it among the leading cryptocurrencies in terms of performance.

What makes this surge particularly significant is how close XLM was to its historic lows just at the beginning of November. The impressive rally has brought the price closer to its all-time high (ATH) set in 2021, igniting hopes among investors for a continuation of this upward trend.

XLM Derivatives Market Reaches New Heights

Adding fuel to this rally, XLM has seen a historic surge in derivatives trading, with open interest on exchanges reaching an unprecedented $443.99 million in the past 24 hours. This remarkable figure has far surpassed the previous peak of $180 million recorded back in April 2021. Moreover, the derivatives trading volume hit a staggering $10.17 billion within the same time frame, signaling a strong demand in the market.

This explosion in open interest and trading volume illustrates a robust sentiment shift among traders, which has consequently created an environment conducive to XLM’s recent uptrend. When combined with solid spot demand, these factors have formed a perfect storm for an explosive price rally.

Stellar Lumens & the FedNow Initiative: A Game-Changer?

The excitement surrounding XLM's resurgence is further amplified by the recent announcement that the Stellar Lumens blockchain will support the Federal Reserve's FedNow payments initiative. This integration could lead to a significant increase in organic utility for XLM, enhancing its desirability and driving up demand for the cryptocurrency.

Such developments are not mere blips on the radar; they could encourage a wave of long-term holding (HODLing), as investors speculate on potential price increases in the weeks to come. The anticipated utility increases might pave the way for further price appreciation, encouraging optimism around XLM’s future performance.

What Lies Ahead for XLM Investors?

Despite the recent exuberance, investors should be cautious. The token is currently seen as overbought, implying that a price correction may be imminent in the short term. However, given the foundation laid by the recent price hikes and the momentum generated by market demand, there remains potential for XLM to enter a price discovery phase in 2025 or potentially earlier.

As the narrative surrounding XLM evolves, the convergence of increased utility and speculative interest may catapult the token even higher. For now, all eyes are on the Stellar network, eagerly awaiting the next capital move in the cryptocurrency landscape.