Stellar’s XLM token emerged as the standout performer on Saturday, surging 6% to reach $0.3880 and clinching the top spot for percentage gains among the top 20 cryptocurrencies by market capitalization.

The rally followed news from June 11, when PayPal announced plans to launch its U.S. dollar-backed stablecoin, PayPal USD (PYUSD), on the Stellar blockchain, pending regulatory approval from the New York State Department of Financial Services. If greenlit, this move would expand PYUSD’s presence beyond its current homes on Ethereum and Solana.

PayPal praised Stellar’s blockchain for its low-cost, high-speed transactions and real-world utility. The integration aims to boost the accessibility and usability of PYUSD for payments, cross-border transfers, and broader financial services. It’s expected to improve everyday payment options and offer users enhanced tools like working capital and small business loans, sectors where Stellar already has a strong footprint.

In its press release, PayPal highlighted Stellar’s robust global infrastructure, including a broad network of on- and off-ramps, local payment systems, and digital wallets that could help bring PYUSD to users across more than 170 countries. The company also sees potential in leveraging PayFi, an emerging digital financing mechanism that would enable businesses to tap into real-time capital distributed in PYUSD via Stellar.

May Zabaneh, PayPal’s Vice President for Digital Currencies, said the collaboration is a step forward in using blockchain technology for cross-border payments. Denelle Dixon, CEO of the Stellar Development Foundation, added that the partnership could help bring practical stablecoin solutions to emerging markets and small businesses worldwide.

PYUSD, issued by Paxos Trust Company, is fully backed by cash and cash-equivalent reserves, maintaining a fixed redemption value of $1.00 per token.

Earlier this year, Stellar released a short video featuring Ian Burrill, Senior Director at PayPal and leader of its crypto engineering team. Burrill highlighted Stellar’s speed and low transaction costs, noting that integrating PYUSD with Stellar expands its reach to over 180 countries. He emphasized that enabling merchants to use PYUSD on Stellar allows them to move funds in real time, enhancing capital efficiency.

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Technical Analysis

• Stellar’s XLM token logged significant gains over a 24-hour period from July 11 at 17:00 UTC to July 12 at 16:00 UTC, trading within a $0.071 range and posting approximately 20.59% volatility, moving between a session low of $0.345 and a high of $0.416, according to CoinDesk Research’s technical analysis.
• A notable surge occurred around July 12 at 01:00 UTC, when XLM spiked from $0.354 to $0.393 on a substantial trading volume of 551.38 million units, more than double the 24-hour average of 234.19 million, establishing strong technical support near the $0.354 level.
• The upward momentum continued until 11:00 UTC on July 12, pushing XLM to a session high of $0.416 before encountering resistance between $0.400 and $0.403, where institutional profit-taking appeared to cap further gains.
• In the final hour of trading, from 15:47 UTC to 16:46 UTC, XLM rebounded with a 3.89% jump from $0.37 to $0.39, sustaining the session’s bullish trend.
• The most significant price spike during this period came between 16:03 and 16:08 UTC, as XLM climbed from $0.374 to $0.385 on heightened volumes of 13.16 million and 17.14 million, significantly above the hourly average of 3.2 million units.
• By the session’s close, XLM had consolidated around $0.385–$0.387, establishing solid support levels as traders eyed potential moves toward resistance at $0.39–$0.40 highlighted in broader technical analysis.