Stellar XLM–Stellar, the sixth largest cryptocurrency by market capitalization, is also starting to look like one of the safest investments relative to the market as we enter the ninth month of a overall bearish year. While most are predicting the bear market continue through the foreseeable future, Stellar at least has new developments to drive investor interest and possibly keep prices stable in the event that Bitcoin slips again.
To begin, Stellar XLM has the looming relationship with Coinbase to buoy prices in the interim. While Coinbase has yet to give specifics on which of the five currencies originally outlined for addition to the exchange will actually matriculate, Stellar’s XLM is an overwhelming favorite. For one, the currency offers an attractive price point and set of characteristics that is markedly different from the current selection offered through the U.S.-based exchange. As opposed to buying cryptocurrency for tens, hundreds or thousands of dollars per coin, customers on the exchange will finally have access to a high supply, high liquidity currency that can be purchased for a fraction of a dollar.
While this has little do with intrinsic value of the currency, it’s the psychology of the pricepoint and its exposure to the a new userbase that will drive further adoption. It would be easy to argue that the current price of Stellar has been upheld by the news out of Coinbase in May, when the currency jumped from a trading point of $0.18 and is still sitting comfortably at $0.22 as of writing. At least until a decision is passed by the exchange, either announcing the official listing of XLM or going with its competitor Cardano’s ADA, the price of Stellar should stay elevated relative to the market as investors fear cashing out ahead of a decision by Coinbase.
Stellar has also managed to build an impressive set of partnerships, with IBM using the cryptocurrency to build a near real-time blockchain payment network. The Stellar Organization, the non-profit group behind the currency, have been driving philanthropic efforts to build adoption in developing countries, particularly those of the Southern and Southeast Pacific as a way to reach customers without access to traditional banks. Stellar, much like XRP, has a minuscule transaction fee and under 10 second transaction time, making it a very attractive coin for adoption in commerce. While cryptocurrency-based mercantilism has yet to reach the level of saturation necessary for the industry to really take off, high profile and large market capitalization coins such as Stellar will be the undeniable beneficiary of a digital landscape that finds more integration and use for cryptocurrency as an alternative to traditional fiat.
Stellar could also find itself in a position for greater exposure in countries facing fiscal crisis, such as the rampant inflation currently impacting Venezuela. While CC originally covered the avenues for how XLM could become the coin of choice for Venezuelans over Bitcoin and DASH, it is highlighting the utility of the currency and its ability to transact as effortlessly as traditional ACH or Visa that will drive the greatest development interest.
In addition, Stellar has been tied to a number of rumors related to a possible partnership with Facebook. While Facebook since denied the reports as being false, a number of anonymous tipsters have been quoted with saying there was some interest between the two parties–albeit a relationship that is not ready to move forward at this time.
In all, given the potential of a Coinbase listing which could send XLM’s price on a bullish run, it’s hard to imagine the coin tanking in price in the near term. The growing list of partnerships and the development with IBM provides a stronger foundation for the coin going forward relative to the rest of the market.