Stellar (XLM) is one of the best performers today, adding more than 20% to its value. But while this price rise could be due to the increased positive momentum in the entire market, there are a number of factors that give Stellar (XLM) the impetus to grow going into the future. These are issues that touch on its compliance to regulations, as well as its technical capabilities in the markets. So how high can Stellar go? To determine this, let’s go through some of Stellar’s key strengths that will give it value in the market going into the future.
The first one is regulatory compliance. As blockchain technologies makes in-roads into various spheres of society, especially in finance, legal issues will take center stage. For instance, the issue of money laundering will become more pronounced. That’s because AML regulations are there for a reason. They are meant to protect society from crimes such as terrorism among others. Stellar is one of the few cryptos that have this aspect taken care of. Stellar’s compliance protocol has a mechanism to pre-approve transactions, which makes it fully compliant with global anti-money laundering laws, as well, as other issues related to money laundering. This aspect to Stellar (XLM) will see Stellar continue to gain in adoption by different financial institutions all across the world. This will drive up the value of Stellar (XLM) going into the future.
Closely linked to Stellar’s regulatory compliance capabilities is the fact that it is one of the few cryptos that will lead the way in asset tokenization, and open up the flood gates of security tokens. At this point, ICOs can pretty much be declared a failure. The whole concept of throwing millions of dollars at untested ideas has led to massive scams, and to the financing worthless ideas that are just trying to ride the blockchain wave. The future is in security tokens. These tokens are akin to owning shares in a company. The investor puts money in a business that is already in existence, and has already been proven in the market.
This means that even the valuation of the token has a fundamental basis to it, unlike the arbitrary valuations that characterize ICOs. As security tokens start replacing ICOs, the value of Stellar will rise with them as well, since the stellar network will be at the basis of it all. That’s because their credibility in the market will draw in institutional money, with their billions into the tokens market. They will come in because stellar tokenized securities are not only real businesses, but are also fully in compliance with security laws. In essence, the security wave offerings will be way bigger than the ICO wave of 2017
On the basis of its compliance with the law, and the fact that it is at the center of one of the biggest revolutions in the finance industry ever, Stellar is primed for a major bull run going into the future. Stellar has the potential to hit double digit valuations.