Stellar Lumens (XLM) and Ripple (XRP) tokens surged overnight as market participants cheered the GENIUS Act vote in the United States. The XLM token reached a high of 0.5200, representing a 138% increase from its lowest point this year.
Similarly, the XRP price soared to a record high of $3.60, up sharply from this month’s low of $1.90. It has soared by over 500% from its lowest level in 2024, giving it a market capitalization of over $212 billion.
Why XLM and XRP prices jumped after the GENIUS Act
Stellar Lumens and XRP prices surged after the US House of Representatives voted for the closely watched GENIUS Act on Thursday.
This act, the first crypto-related legislation by the US Congress, creates the rules that stablecoins used in the United States should follow. For example, the rules state that the dollar and short-term US government bonds will back all USD stablecoins.
The rules also say that all stablecoins will be audited, and the issuers will file regular disclosures.
Analysts believe that these rules will help boost consumer confidence as the use of stablecoins becomes more mainstream in the US and other countries.
These rules will also draw more companies and users to using stablecoins. Some companies like Walmart, Amazon, and Citi have explored using these stablecoins.
The GENIUS Act will have an impact on Stellar and Ripple because their business models have a stablecoin element. Stellar focuses on global payments and mostly uses the USDC stablecoin.
The latest data by Artemis shows that its USDC volume has jumped in the past few weeks. Stablecoin supply on Stellar jumped by 18% in the last 30 days to $181 million, while the number of addresses jumped to 258k. Stellar handled a volume of over $1.6 billion in that period.
The GENIUS Act also impacts Ripple because the company launched Ripple USD (RLUSD) last week. The US dollar backs the RLUSD stablecoin and has accumulated over $520 million in assets.
This stablecoin will likely continue growing in the coming months, especially if USDT is delisted in the United States. Unlike RLUSD, USDT is backed by both the US dollar and other assets like gold and Bitcoin.
XRP price analysis
The daily chart indicates that the XRP price has staged a strong comeback this month, having exited an eight-month consolidation period. It has moved above the upper side of the symmetrical triangle pattern.
The coin also crossed the previous year-to-date high of $3.3815. It also remained above the 50-day and 100-day moving averages, while the Relative Strength Index (RSI) and other oscillators have all pointed upwards.
Therefore, the token will likely continue rising as bulls target the key resistance point at $4.26. This target price is derived by measuring the depth of the bullish flag and extrapolating it from the breakout point.
XLM price prediction
Stellar Lumens token price staged a strong comeback this month. This surge happened after it formed a double-bottom pattern at $0.2175 and a neckline at $0.3352, its highest point on May 12.
The token has moved above the 50-day and 100-day Exponential Moving Averages (EMA). It has also formed a bullish pennant pattern, pointing to more gains in the coming months. If this happens, the token will jump to $0.6353, its highest point in November.
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