IBM has announced the launch of the blockchain world wire in 72 countries. According to the company, 6 major banks have confirmed that they will be issuing stable coins on this platform. Essentially, this means that banks could be looking to use the IBM blockchain world wire, but they won’t be using Stellar (XLM). As an investor, this may put you in a state of confusion. That’s because part of what most investors expect to give value to Stellar (XLM) is its adoption in the banking market. So, what does the adoption of stable coins mean for Stellar (XLM)?
Well, for starters, whether banks use or don’t use Stellar (XLM), this is a win. That’s because the fact that the stellar blockchain could be about to be adopted by the banking industry automatically raises the profile of the Stellar ecosystem. There is someone out there who doesn’t know about Stellar (XLM) but will now get to know about it, once it becomes the backbone of the banking industry. There are also people in crypto who haven’t taken Stellar (XLM) seriously, but will now begin to FOMO in simply because the stellar blockchain is the one that could anchor the cross-border payments market. This is likely to drive up demand in Stellar (XLM) purely on the basis of speculation.
Speculation is a powerful factor in crypto and is the reason behind crypto price movements up to this point. Even the 2017 Bull Run that pushed Bitcoin to $20k was a speculative wave. It was not based on any fundamentals. Crypto is still so young that fundamentals can’t move prices. No crypto, not even Bitcoin (BTC) has achieved the level of adoption that would make prices move on the basis of fundamentals. In essence, any crypto that has positive news that could drive up its price on the basis of speculation is always likely to gain in value. Therefore, now that Stellar is being associated with the banking industry and possible mass adoption is on the way, this could create a huge speculative wave in this crypto and significantly drive up its value. Already, Stellar (XLM) is showing signs of positive momentum due to this speculation.
Since the news of IBM blockchain world wire adoption started making headlines, Stellar (XLM) has been one of the biggest gainers. Yesterday, when this was officially announced, Stellar (XLM) spiked, compared to the rest of the market, where most major cryptos only made marginal gains. This is a good sign that speculation is strong. The moment banks start implementing the shift to the IBM blockchain world wire, Stellar could go big in terms of gains.
Going forward, Stellar (XLM) stands to be one of the best cryptos that an investor can hold with the expectation of gains. If the crypto market makes a turn around this year, then Stellar (XLM) could easily re-test its all-time highs in the near-term. Considering that it has other uses as well, Stellar stands a real chance of growing even much bigger than it was in 2017.