Why is Stellar (XLM) having a 10x lower trading volume than Litecoin (LTC)

Trading volume, or volume, is the number of tokens bought and sold that indicates the overall activity of a token for a given period. Trading volume is a useful technical indicator you can use to confirm a trend or trend reversal. Volume gives you an idea of the price action of a token and whether you should buy or sell the token.

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.

Stellar is one of the top cryptocurrencies that is known for its low trading volume in comparison to its neighbors on the coinmarketcap rankings. XLM recorded only $99 million of trades in the last 24 hours, which is one order of magnitude lower than its closest rival for the 6th spot on the rankings by market cap, Litecoin. Litecoin had almost $900 million trading volume, not to mention the volumes leading coins jotted down which were in the billions. The only coins with similarly low trading volumes among the top 10 are undeservedly high ranked bitcoin fork BSV (less than $70 million) and marketing gimmick Tron (around $166 million). So that is not a really good company to be associated with.

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The issue is most likely related to the coin’s lack of fiat pairs, weak marketing effort and generally low to non-existent commercial usage. XLM 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 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.

Lack of more XLM/fiat pairs is also a headache for the XLM project and is one of the pain points identified by their community, alongside perceived scanty marketing endeavors by Stellar Foundation.

Stellar is mostly in the shadows of its closes use-case opponent, XRP that has built a strong social media military that is patrolling platforms and aggressively defending Ripple coin along with shilling it to exchanges and companies for more adoption. I am not saying XLM should do something similar as these pushy XRP bots are as counterproductive as they are useful; but SF should definitely put more resources into the retail marketing campaigns so the new entrants to crypto markets can have XLM on their radars.

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Julian Joseph Lehmann
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