The New Year brought Stellar Lumens 400% growth over seven days, moving XLM into the top-ten coins by market cap. They caught the attention of major publications including Hacked, which wrote about their meteoric rise on New Year’s Day. Why is this cryptocurrency so hot?
The meteoric rise has driven Stellar Lumens to over $15 billion in market cap, pushing past Litecoin, IOTA, Dash and other major movers. This is surprising, given that Litecoin is on GDAX, a top cryptocurrency exchange. Just above XLM is Cardano (ADA), also a mover and shaker, with nearly $30 billion in market cap.
What makes Stellar Lumens (XLM) so special? For starters, they provide an instant digital solution for international funds transfers. Cross-border payments have been a hot topic lately, with Ripple (XRP) dominating the news cycle. While Ripple has concentrated on leading banks and financial institutions, XLM is focusing its efforts on developing nations. Ripple has experienced a similar growth surging from $0.25 on 12th December, to $1 on the 26th and $2.15 on 2nd January 2018. XLM has experienced a lot of trading on exchanges like Poloniex, Bittrex, and Binance in the last 24 hours at a volume of $679 billion equivalent to 48,821 Bitcoin, and it’s catching the attention of fintech influencers like Frank Chaparro from Business Insider who tweeted, “Cardano and Stellar… we see you.”
Cardano and Stellar… we see you pic.twitter.com/Azp54YNfzc
— Frank Chaparro (@fintechfrank) January 3, 2018
Stellar Lumens is the brainchild of one of Ripple’s co-founders, Jed McCaleb who describes it as a global payment network with lumens (XLM) as its native asset. The website describes Stellar as a way to “move money across borders quickly, reliably, and for fractions of a penny.” Its blockchain technology serves as infrastructure to facilitate cross-asset value transfers including payments, and the company’s vision is to create an open and accessible global financial network to serve as a connective platform for institutions, individuals, and payment systems.
XLM offers an attractive alternative for investors who are bearish on Bitcoin or who feel that they missed out on Ripple’s (XRP) big wave. XRP has just broken the $2 barrier and because they run on a somewhat similar platform and share a co-founder, it is possible that investors expect XLM to follow the same growth pattern.
Investors see Stellar Lumens as a rising star in terms of cross-border transactions. Owing to its customizable network for value exchange, it will hasten transactions and lower the related costs offering a more reliable system than all the existing ones. XLM is poised to become a global connecting point for individuals and P2P transactions different from Ripple which is built for banks and financial institutions.
Stellar has boosted its profile following an announcement on partnerships with major tech companies and banks. Tech giant IBM announced it is bringing eight international validators to Stellar’s network while Jed McCaleb claimed that at least 30 banks will join IBM’s project. The number of new potential partnerships has shown XLM to be an affordable, secure and customizable platform that can be trusted. Will Stellar Lumens (XLM) rise like Ripple (XRP)? Look at the underlying technology, its target audience, and the parties involved for clues.
Daniel is an experienced and dynamic entrepreneur with a demonstrated history of launching and operating successful businesses. Skilled in Business Strategy, Technical Consulting, Coaching, Sales, Entrepreneurship, Team Building, and Public Speaking.
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