The crypto bloodbath continues as bitcoin drops below $5000. This has seen most altcoins enter capitulation phase as many of them now trade at over 95% loss, on their all-time high values, and it could get worse, due to a possible BTC drop below $4000. Actually, if the charts are a reliable indicator, then bitcoin (BTC) could be headed to $3k. That’s because ever since it broke key support at $5700 on the weekly 100-day MA, it has been sliding down fast.
The next key support for bitcoin at this point is at $3118 on the year’s 200-day MA. This means that most altcoins are now at a real risk of disappearing from the market, as they could be going to zero.
However, there are two altcoins that are holding up well in this market, and that’s XRP and Stellar (XLM). On its part, XRP has actually been gaining in value, while stellar has held its value at a price level where it has been trading at, for a good portion of 2018. It has gone through the last two weeks relatively unscathed. If anything Stellar has seen worse, hitting $0.18 at some point in the last few months. Just like XRP has also seen worse, after hitting a low of $0.25 some months ago. From a look at the long-term charts, Stellar is still trading firmly in a bullish channel, which started in June after it hit a low of $0.17.
So what’s holding up stellar (XLM) in a market like this one? Well, it’s most likely the same reason why XRP is doing well, and that’s utility. There is a good chance that investors are now looking into cryptos that have real utility. While bitcoin (BTC) has held the top spot for long, the reality is that at this point it doesn’t have much utility in the market. Therefore, after last week’s bitcoin cash fiasco that saw threats of purposely crashing bitcoin fly around, the first mover advantage that gave Bitcoin (BTC) value, could have been dented. Investors are now scouting for real value, cryptos that can do what they are supposed to do and do it well.
Using these parameters, XRP and Stellar (XLM) stand out. Both of them have a real utility that is clear for everyone to see. For instance, both can be used to fast-track the flow of money all across the world. This has already been proven by their massive adoption in the banking industry where they both stand a good chance of replacing SWIFT in the trillion dollar cross-border payments market.
This is a value that the market is turning to, as crypto prices get more chaotic. Stellar’s utility is also quite visible in the asset tokenization space. In this market, there is a good chance that stellar could replace Ethereum (ETH) as the market leader. That’s because its model is a bit different and avoids an influx of scams in the crypto market as happened with most Ethereum based ICOs in 2017. If the stellar STO model gains traction, the only direction Stellar (XLM) can go from this point on is up.