XLM climbed 1.45% to trade near $0.20, extending its recovery from an August low around $0.155. The price movement comes as Tether's USDT0 stablecoin launched on the Stellar network, adding liquidity to the payment-focused blockchain.
The Stellar Development Foundation announced USDT0's arrival on September 2. The token expands Stellar's stablecoin offerings, joining existing USD-backed and euro-backed options like USDC and PYUSD. USDT0 enables users to access Tether's liquidity through Stellar for international payments, transfers between financial applications, and corporate settlements.
Unlike separate token pools across multiple networks, USDT0 operates from a single common supply backed by Tether. Users do not need to hold XLM to make payments on the network, though the token covers transaction fees and account maintenance. Increased stablecoin usage could boost network activity and demand for XLM among competing cryptocurrencies.
At the time of reporting, XLM was trading at $0.1903, ranging between $0.1854 and $0.1964 during the session. Total trading volume reached 87.09 million XLM. The price is approaching $0.20, a level that has acted as a barrier in July and August.
Technical analysts note that sustained movement above $0.20 would be required to confirm momentum for a potential rally. If the price holds above this threshold, $0.21 and $0.22 represent next resistance levels. A rejection could send XLM back toward support near $0.18 or lower to $0.16, levels last seen in August.
Buying interest has increased recently, though volumes remain below earlier 2024 rallies, suggesting the recovery is still gathering strength.
