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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.

Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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