Stellar's XLM token is experiencing a decline today, driven by a combination of factors affecting the broader cryptocurrency market. The sentiment in the crypto space has worsened, leading to a decrease in demand for both spot and futures markets. Notably, the futures open interest for Stellar has dropped significantly, falling to over $224 million from a year-to-date high of $307 million. This decline in open interest, which measures all open call and put trades, suggests a lack of confidence among traders, contributing to the downward pressure on XLM's price.
Additionally, on-chain data indicates a continued decrease in the number of weekly transactions within the Stellar ecosystem. Transactions have fallen from a peak of over 90 million in 2023 to below 40 million, further highlighting the waning activity and interest in the network. These factors, combined with the broader negative sentiment in the crypto market, have led to a challenging environment for Stellar's price.
The current price of Stellar's XLM is $0.4105, reflecting a 2.84% decrease from its previous close of $0.4225.