Stellar (XLM) continues its exemplary performance and is up 3.6% in the day, having retouched its recent high of $0.30. This has created lots of excitement around this project, especially now that its key competitor XRP (XRP) seems to be lagging behind in terms of price growth. Many investors believe that it is the possibility of a Coinbase listing that has given Stellar (XLM) its recent boost. But that just a small aspect to Stellar’s growth. Stellar has the fundamentals to see it continue to grow in value, provided there is bullish sentiment in the crypto market.
First, Stellar is targeted at the cross-border payments market that XRP (XRP) is also focused at. Through its partnership with IBM, Stellar is making in-roads in the market as a liquidity provider in cross-border payments. With the heavy regulatory cloud that is hanging over XRP (XRP) at the moment, there is a good chance that Stellar (XLM) will emerge as the preferred crypto in the cross-border payments space. The fact that Coinbase is considering listing it also means that U.S regulators believe it’s a decentralized cryptocurrency, and could see U.S banks move to use it as the crypto of choice in cross-border transactions.
But there is more to Stellar (XLM) than just cross-border payments. Stellar is also a decentralized exchange. The StellarX exchange allows crypto investors to swap one coin for another without having to go through any middleman and for free. Given that exchange hacks have become a major cause for concern in crypto circles, it’s only natural that a truly decentralized, and cost effective peer-to-peer crypto trading mechanism is guaranteed to gain traction. Given that Stellar is the crypto at the base of the stellar network, it follows that as the usage of StellarX grows, the value of Stellar (XLM) will shoot over the roof.
What’s even more interesting is that the stellar network is designed to allow for the digitization of any asset. This means that investors can digitize any asset they have in mind, while leaving stellar to handle all the technicalities involved. As such, in the future the stellar network has the capacity to bring together all assets, digital or otherwise on to the blockchain, thereby ushering in the true digital economy. It also means that Stellar is about to attract lots of liquidity in the future. The Stronghold USD stable coin on the stellar network is one example of the future liquidity position of Stellar as a blockchain project for cross-border payments, and peer-to-peer crypto exchange.
All these factors when put together point to a future where Stellar (XLM) has the potential to exponentially gain in value in coming days. In a few years, Stellar could easily be trading at over $5. It has all the fundamentals to give it such a huge and fundamental jump in price. In the very short-term, Stellar has the potential to close the year at $1 or more. It’s performance will catch many by surprise, just like it has done in the last week.