Though both have performed well in recent days, Stellar Lumens XLM is outperforming Ripple XRP for the past seven-day period. XLM ended the cycle +1.87 while Ripple fell 6.34% in the same period. Stellar’s performance was…stellar, especially considering the sea of red seen in the crypto markets through the middle of September, which is good news for those who have been buying XLM.
It’s usually unwise to draw overly specific conclusions based on daily crypto price activity. These markets are turbulent, after all. Nonetheless, Stellar’s stand-out performance is based on verifiable news, which could indicate better times ahead for the price of XLM.
Stellar’s Real World Achievements
Amidst the ongoing bear market, one of the biggest complaints made by crypto investors is that poor prices represent poor quality among blockchain projects. It is thought that the industry simply didn’t deserve the sky-high prices of late 2017. And while this criticism can certainly be levelled against most cryptocurrencies, the same cannot be said of Stellar Lumens.
Stellar Lumens is the brainchild of Ripple co-founded Jed McCaleb. Even as Ripple entered its ascendency, McCaleb took the core of what made its technology great and used it to create Stellar Lumens. Stellar Lumens was to make international financial transfers frictionless, fast, and (practically) free – just like Ripple. But where Ripple had gotten itself entrenched in the banking sector, Stellar Lumens was intended to be more useful for the everyday person.
Indeed, Stellar Lumens has become integrated into the international remittances industry, providing better and more affordable service than traditional channels like Western Union. But Stellar has also gained perhaps the most visible partnership of any competitor cryptocurrency, acting as the official blockchain of IBM.
The Stellar/IBM Partnership
One of the biggest arguments against cryptocurrency is that the industry’s achievements seem to occur inside a bubble. Stellar’s IBM partnership proves that blockchain can break into conventional industry. The Stellar Lumens blockchain is the basis of IBM’s new cross-border payments technology. IBM has been quick to tout the power of this new tech, creating a series of high budget ads that have appeared on TV and the internet.
Stellar also recently announced that it had acquired Chain – a ledger-based payment network solution already employed by VISA, NASDAQ, and CitiGroup. This is the kind of news that would have sent XLM to the moon a year ago, but today has resulted in only a modest price bump.
What Does This Mean For the XLM Price?
The price of XLM is likely to continue its mercurial activity. The crypto markets are still dominated by Bitcoin. While BTC is suffering, it’s extremely difficult for any other cryptocurrency to truly distinguish itself. Nonetheless, we think that real-world accomplishments like this indicate that someday soon, first class coins like Stellar Lumens will wake up soon – and then likely in a big way!
Stellar’s partnerships don’t necessarily mean that buying Stellar is better than buying Ripple XRP, or that one will necessarily perform better than the other over any time period. We’re simply excited to let you know that industry adoption is real, and that Stellar is at the forefront of this necessary industry achievement.
More Stellar Resources
(This piece is the opinion of the author and should not be considered investment advice)
Featured image source: Flickr