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Here’s Why Stellar (XLM) Is Owed A 350% Run

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Stellar (XLM) is trading at a 10% premium to the price at which it traded this time yesterday (midday US session) but remains down a little more than 67% from highs of $0.86 – levels registered on what has now become an infamous January 4, 2018.

This is one of the coins that we have covered on a couple of occasions in the past and, in our most recent coverage, we compared it to Ripple (XRP) in terms of use case. That is, we suggested that Stellar served as a sort of everyday iteration of Ripple, with the latter providing cross-border transaction functionality to financial institutions and the former serving pretty much exactly the same function but between individuals as opposed to registered entities.

XLM Daily Chart

XLM Daily Chart

In the same vein, we suggested that it has the potential to provide a banking solution and a remittance solution to the billions of individuals globally that, right now, have no access to bank accounts or any real security when it comes to value storage and transfer.

That is, after all, what cryptocurrency (we’re looking at you, bitcoin) was first pitched as being when it hit markets nearly a decade ago.

The question is, however, and especially in the wake of a pretty much across-the-board decline in the cryptocurrency space over the last six weeks or so, just how far can this one go and what sort of timeframes are we looking at when we say that there is real upside potential associated with Stellar and XLM at current rates?

Consider the following.

There is a total supply of a little over 103 billion XLM in place. Right now, the circulating supply comes in at around 18.5 billion. That’s around 17% of total supply currently in circulation.

Compare this to Ripple, which has a total supply just shy of 100 billion and an in-circulation supply just shy of 40 billion (so, around 39%) and current pricing seems pretty much in line between the two coins.

To put this another way, we would expect Ripple to be priced at double XLM right now because there is around double the proportion of overall supply in circulation at the current time.

And it is, pretty much.

That is, of course, when we assume that Stellar has a similar market potential in terms of total market capitalization to Ripple.

Not unreasonable, right?

Well, now consider this.

At its peak, XRP traded for more than $3.50 apiece. That’s a 350% premium to current pricing. At its own peak, however, XLM only traded for around $0.80 apiece – a 122% premium on current prices.

So, let’s assume XRP can run to at least its early January peak within the next few months – a conservative assumption given the fundamental developments we have seen from Ripple over the last few weeks.

Building on the assumption that XLM should track XRP from current prices (and assuming that current levels are buyer-seller balanced, which is reasonable) then we could (and should) see XLM run at least 350% during the coming months.

A 350% premium on current prices puts XLM at $1.70.

All this, of course, only assumes that prices of Ripple reach highs that have already been reached within the last six weeks or so. If the wider market turns around and manages to attract a bit of speculative volume, any break of previous highs will almost immediately translate to a sustained run which, in turn, could push XLM to $2 pretty much immediately.

We will be updating our subscribers as soon as we know more. For the latest on XLM, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.


Image courtesy of Stellar.

Blogs

Is Tether (USDT) really a stable coin?

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Tether is one of the top digital assets in the crypto-sphere. The coin was launched in November 2014 after it changed its name from Realcoin so that the crypto community doesn’t associate it to the altcoins. It is important to know that Tether is a currency that helps to convert fiat currencies into digital currencies.

Moving forward, there have been lots of FUDs around Tether these days as regards to whether it is going to be a truly stable coin as the market has seen dips lately. Also, the FUDs around Tether have raised questions on whether there are any backings to the digital asset.

It is crucial to know that other factors have been attributed, and one of them was a report from last month that stated that Tether and Bitfinex, had gone their separate ways with Noble Bank. The separation made Bitfinex suspend fiat wire deposits – without no reason or whatsoever.

Tether, in regards to market worth, comprises about 92 percent of the market capitalization of stable coins. Also, this stable coin offers two purposes: to stabilize the volatility of Bitcoin, and also to preserve the amount of money purchasing power investors have at hand when the value of larger cryptocurrencies such as BTC drops.

The coin is a good alternative for traders when trying to cash-in on fiat currencies, as we do know that trying to move money from different exchanges to fiat…

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Blogs

TRON Partnership Involves Cloud Computing

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TRON partnership
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It has been almost an entire week since Justin Sun, the founder of TRON (TRX), announced a new big partnership for this cryptocurrency. His Twitter announcement did not provide a lot of information, except for the fact that the TRON partnership is with an industry giant worth tens of billions of dollars.

Even so, the entire crypto community started speculating about the new partner’s identity. Soon after the announcement, a new rumor emerged, claiming that the identity of an unnamed corporation was uncovered. According to the rumor, TRON’s new partner is none other than Baidu, one of the largest tech giants of China, which also represents this country’s largest internet search provider.

Baidu is often viewed as China’s version of Google, and if the rumors of a partnership with this company turn out to be true, this will be a big game-changer for TRON.

However, in days following the announcement, new reports started coming in with claims that the partnership will not revolve around blockchain technology. Instead, ODaily reported that the alleged partnership between TRON and Baidu will be focused on cloud computing. The report claims that TRON will be purchasing computing resources from Baidu.

Baidu to…

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Bitcoin

Will Ripple (XRP) advocacy hike affect bitcoin dominance of China?

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Currently, China is leading in Bitcoin mining industry by far, second to none for bitcoin mining power. Literally, it’s contributing over 70% of the network’s hash rate (a term that is used in describing the total processing power of a blockchain network). But how Ripple fits in here and what it has to do with that? We’ll talk about that a bit later below, let’s cover some in-depth facts about China’s dominance over Bitcoin first.

It’s a near-complete dominance by China on the BTC mining grid that has made it responsible for mining a majority of circulating bitcoins. A Beijing-based company, Bitmain Technologies, is highly responsible for extracting the significant part – more than half of the globe’s bitcoin, and alone, it has approached 50% of the total hash rate more than once.

The fact that China is controlling a majority of Bitcoin hash rate, clearly tells that it has the power of manipulating or merely destroy the bitcoin network if it gets enough support should it decide to take such a move. Therefore, this has led to serious concerns among countries including the US that China might get an edge in this cryptocurrency industry and possibly becoming a potential threat.

China is the biggest manufacturer of Bitcoin as well as cryptocurrency mining equipment. The reason behind the massive growth of mining farms in the country is because of cheap electricity bills.

Furthermore, the country has adopted several…

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