Verge (XVG)

As Stellar (XLM) Organization approaches its 4th birthday this July, a lot of the talk has been centered on its possible listing on Coinbase. Written by Nick Mwenda, one of Cryptoglobalist correspondents on all matters XLM and Ripple (XRP), Stellar seems to be getting the nod from one of the largest cryptocurrency exchanges while XRP wait goes on. The overall effect of these upcoming events from Coinbase seem to be more detrimental to the exchange than XRP in cause. Coinbase loses the chance to list one of the largest cryptocurrencies rather than XRP losing on the “Coinbase rises price” impact. However, we need to focus on what impact the listing will have on XLM and Cardano (ADA), the two most likely coins to gain listing on Coinbase.

Stellar’s price run since inception in July 2014 has been remarkable. The coin which started off at a low price of $0.003 USD per token, has seen its price rise to $0.220061 USD per token today. This represents a 7000%+ increase during the period, a sizable return for one of the gems in the cryptocurrency world. Will we be seeing the coin hit such sizable returns after Coinbase listing? Probably not as the coin will need to hit $16 to realize such a return. However, the impact of Coinbase listing will without doubt be felt.

Ethereum Classic (ETC), the latest coin to enjoy Coinbase listing had dropped by 100% to $12 from May to early June, when the announcement was made. As other coins in the market continued in their turmoil with falling prices during June, ETC saw its price rise to $18 representing a 50% increase during the period. The listing is yet to occur with plans to push it to a sooner date currently ongoing amongst the executives. The increase in price however wasn’t the main observation made on the price…

The Stability Impact from Coinbase

Stellar Lumens (XLM) will with no doubt be the coin to watch in the coming months if Coinbase chooses to list it. The last 3 months has seen wild volatility in the market as XLM’s price rose to $0.458580 USD in early May and dropped to $0.18560 USD. This kind of volatility has been a cause of concern to most skeptics who view cryptos as a risky investment. Stellar is set to benefit from this with the Coinbase listing.Stellar LumensXLM-USD Price chart in the last 3 months

Coinbase exchange is the largest fiat-crypto exchange in the world. Most of the cryptocurrencies, XLM included, faces a huge dominance from the trading pairs with Bitcoin (BTC) and Ethereum (ETH). This causes a positive correlation between BTC/ETH prices and XLM denying the latter an independent move in price. This will however change after the listing on Coinbase as investors will be able to directly purchase the token directly using fiat.

A less volatile market will allow Stellar (XLM) development to run at a steady pace while keeping investor’s confidence in in check. This offers a clear opportunity for XLM’s price to rise and keep steady which is important for the token’s long term growth.

loading...

LEAVE A REPLY

Please enter your comment!
Please enter your name here