Stellar Lumens is one of those rare projects that both have a fully working product and a clear use case that should ensure commercial adoption. However the coin and the project have somewhat failed to impress, as the entire market still struggles with an apparent bear trend. Coin’s price related to Bitcoin has somewhat stagnated, and since Bitcoin’s dollar value keeps dropping, XLM has experienced a slow bleed in dollar value as well.
While the XLM/BTC dropped from 4800 sats to around 3500 in the past month or so, the XLM/USD has experienced a much bigger drop-off. During the same period, XLM bled from 0.44 USD to its current 0.23 USD, losing almost half of its dollar value. With the current circulating supply of 18,604,641,860 XLM and a market cap of $4,264,369,961 USD, Stellar Lumens remains on the 7th spot of coinmarketcap’s list of top cryptocurrencies out there. The coin is traded at $0.229301 USD which is a 4.32% increase in the last 24 hours. XLM is currently hovering above the $0.20 USD support line. If this line is broken, we could see a further decline that will bring XLM above its next $0.16 USD support. For now, people are looking for a consolidation above $0.22 USD which could signal a rally towards the next breakout line at $0.24.
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Stellar’s main issue currently seems to be a general lack of trading volume. This isn’t the case exclusively with XLM, as other currencies have seen a lot of investors sell their holdings off and decide to sit tight until the bear market ends. For now, XLM remains a coin with the lowest daily volume among coinmarketcap’s top 10.
The issue is related to the coin’s lack of commercial usage. It is aiming for the big market of financial services but is facing a lot of resistance along the way. Besides the general public still preferring banks and fiat for their financial operations, the rest of the people who are interested in crypto seem to prefer XRP as their cryptocurrency of choice. As an added problem, the much lauded and recently signed partnership with IBM is yet to start bearing fruits for the project in terms of commercial adoption.
IBM won’t be enough to ensure the widespread adoption of XLM, which is why the project is working hard on establishing additional partnerships across the world. Projects like Cross Hedge, REM Royalty, Swych, TillBilly, FlipNpik and many more have confirmed their intention to work with XLM.
Another important step towards commercial adoption of XLM has been its recent USD anchor announcement. Namely, the Stellar based exchange called Stronghold will have real USD deposited as anchor against XLM. This USD will become digitalized and made available for exchange on the platform. Having direct fiat swap ability could be an important piece of the XLM puzzle, and may go some way towards untying its native asset and network from Bitcoin’s value. Stellar Lumens is also planning to host a Blockchain for Finance conference in Singapore on June 16th, which should ensure further exposure for the project and crypto in general. A recovery for XLM might not yet be around the corner but investing now, in a moment which many consider to be near the end of the current bear market, might not be the worst financial decision of your life.
Why is it that XLM can lose half its value yet hold the #7 spot in market cap? The answer is simple, all other altcoins are struggling right there with XLM. This article should be aimed at the entire crypto market. Singling out XLM is a moot point in a bear market.