Many cryptocurrency enthusiasts have always underrated the potential of Stellar (XLM) but the facts are unfolding as the coin is set to scale new value heights. It is no doubt that digital coin prices have plummeted since January and XLM has also been hit hard. However, a brief comparison indicated that Stellar has been able to hold against the top ten coins by market cap.
Stellar XLM holders have every reason to stay optimistic the coin is about to pull through the bearish market and come out stronger than the run-up to the market boom in December 2017. With the last six months of bearish performance and the recent listings are some of the reasons why the coin short and long term future appears promising.
The Ripple (XRP) and Stellar (XLM) Marker Effect
The good thing about the Stellar (XLM) ecosystem is taking the small amount transaction market by storm while other players like Ripple (XRP) are concentrating on cross border transactions with the banking sector as its mainstay. Should Ripple remain dominant in the banking sector, Stellar dominance in peer to peer should take it places.
XRP and XLM share a lot given that they are both Jed McCaleb brainchild. They both have superior programming languages that include Java, C++ and Python. These languages have worked well for stellar and the platform has never experienced any known issues that could have impacted on investors trust and confidence hence a lot of expectations since the platform has the capability to cushion price drops.
The Connection between Stellar (XLM) and Ripple (XRP)
For those who have been following the market price movement for the past half year, the drop in XRP price has had an effect on XLM. This could be because of the closely related markets the two coins actively play. At the moment, only about 18% of the total XLM is in circulation showing the untapped potential of the coin.
Ripple has double (39%) amount of XRP in circulation compared to XLM and when you look at the market prices, there is a lot of correlation. When the price of XRP goes up, there is always a spike on that of XLM. Assuming the Stellar market is potential is similar to Ripple’s, XLM future is very bright.
Stellar (XLM) Price Shift
Given the above facts, if the XRP price hits the $3.50 mark, XLM will follow suit; however, it is important to note that Stellar is peer to peer outfit and the transaction rates can be higher than that of XRP which means the value appreciation can be higher that Ripple’s making it more viable.
An increased XLM market reach means can easily send XLM to the $2 mark without much effort. With a bullish market Stellar opportunities are not limited and can also withstand the ripple effects of the market nose dive from major coins like Bitcoin.
The Stellar route to market is already cut and once the market momentum north becomes visible, the coin is set to moon. According to crypto verse analysts, the price of XLM is poised to surpass the all time highs it experienced during the December-January boom.
The Stellar (XLM) has however shed 5.58% against the green buck in the last 24 hour trading period and this is reflected on the entire market. During the same period, XRP also shed 5.00% and this relationship makes the two coins unique and their growth closely related.