A large portion of the cryptocurrency space is pitching Stellar (XLM) against Ripple (XRP) right now. Some see the success of two coins as mutually exclusive, with the suggestion that the success of Ripple will make Stellar’s journey to mainstream adoption all the more difficult and vice versa.
We think this is nonsense.
To hijack (and twist) the words of Nick Grindell, this town sure is big enough for the both of them.
Right now, Ripple goes for around $1.30 a piece. Stellar Lumens, on the other hand, go for less than $0.55 a piece. But price isn’t the only metric we should be focusing on here. Market capitalization (and, indeed, the disparity in this metric for both coins) is even more telling – Ripple is currently sitting on a market cap of more than $48.6 billion. Lumens, on the other hand, command a market cap of less than $10 billion. So XRP is trading at a little over twice the price of XLM but just shy of five times the market capitalization.
We think there’s some balancing out to do there and we’d be very surprised if it wasn’t Lumen revaluing to the upside as opposed to the other way around.
But it’s not all about metrics.
There are other factors in play here – fundamental factors – that contribute to a bullish bias on both coins, weighted towards Lumen in the near term.
Ripple has gained strength over the last couple of weeks (subsequent to its early to mid-January lows below $1 a piece) on the back of the company reporting numerous fresh partnerships with enterprise-level companies – MoneyGram, Santander and more. These partnerships have served to reinforce the real world application of the company’s technology and its underlying coin, XRP, and markets have bought up XRP in line with this statement.
We’ve also see Stellar score some big partnerships, however, with some of the most notable being IBM, stripe, Deloitte, and more, yet the company hasn’t really benefitted in line with these developments – at least not to the degree that Ripple has, that is.
Perhaps it’s because the team over at Stellar is more of an entrepreneurial group of startup founders, as compares to the investment bankers and enterprise executives that head up Ripple. Perhaps its because Stellar is targeting individual use cases aimed at consumer spending as opposed to the big ticket interbank finance that Ripple is targeting.
Perhaps it’s both of these things.
Just maybe, however (and we think that this is actually more of a just maybe but we don’t want to get overenthusiastic about it), this is a case of publicity lag.
Ripple is making waves across pretty much every mainstream financial (and other) news outlet globally. Stellar is just about getting started doing the same (as illustrated by a quick mention on CNBC’s Fast Money last night) but it’s a long way off drawing the speculative volume that Ripple has picked up as its name has moved out of the crypto-umbrella and into the glow of mainstream industry.
When this happens (and it’s happening right now, take our word for it), Stellar and in particular XLM is what the crowds are going to flock towards.
Again, we’re not saying that readers should go out and convert all of their XRP to XLM. XRP is an incredible technology and it’s going to be a driving force behind the rejuvenation of the global financial system. Bailing out of an XRP position right now be ill-informed.
What we are saying, however, is that a position in XLM could be a nice portfolio addition, complementary to an existing XRP holding.
Long XRP, long XLM.
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
Importance of Bitcoin ETFs and Bakkt for the Crypto Space
It is no secret that 2018 was a very bad year for cryptocurrencies, at least when it comes to prices and market cap. However, in its brighter moments, this year managed to set the stage for some very important events that are expected to make 2019 very successful and profitable. Two things have attracted the most attention, both of which were expected to occur in 2018, only to be moved for early 2019. Those two are Bitcoin ETF decision by the US SEC, and the launch of Bakkt.
What are Bakkt and Bitcoin ETFs and why are they important?
Let’s start with Bakkt first. Bakkt Exchange is a business that is set to launch at the very beginning of 2019. It is a cryptocurrency platform that is set to offer a large number of services, including things such as warehousing and trading. However, there is another thing that makes Bakkt special, and that is the fact that the exchange itself is a product of the same company that has created the New York Stock Exchange.
In addition, Bakkt will be supported by some very influential names, such as Microsoft, BCG, and even Starbucks, to name a few. Furthermore, Bakkt will support crypto-to-fiat conversions. Starbucks will actually be one of the companies that have volunteered to help test the system, as users will be able to convert crypto to…
SEC Postpones Bitcoin ETF Decision Once Again
The new announcement by the US SEC (Securities and Exchange Commission) states that the decision regarding the potential approval of several applications for a Bitcoin ETF (exchange-traded funds) is once again postponed. This time, the SEC declared that the decision will be made by February 27th, 2019.
The application requesting that VanExk SolidX BTC fund get s listed on Cboe BZx Exchange that was published on July 2nd needs to be given order by the commission within 180 days. Originally, the deadline for doing so was December 29th. However, the SEC decided to extend the period for another 60 days, effectively moving it to February 27th.
The SEC stated that designating a longer period for making a decision was found appropriate, as more time is needed in order to properly consider the rule change.
Cryptocurrencies need a sufficient monitoring mechanism, claims SEC chairman
Recent reports claim that the SEC received over 1,600 comments after requesting the public opinion regarding the ETF applications issue. In the past, the SEC rejected many such applications, some of which were even submitted by SolidX itself. In addition, they also rejected the applications submitted by Gemini, the exchange owned by Winklevoss twins. Brothers were attempting to gain ETF approval ever since 2013, although to no avail.
Other applications were also submitted by Direxion, ProShares, as well as GraniteShares. The SEC rejected them all,…
What to Expect in 2019: BTC, BAT, and Steem
There are only a few weeks of 2018 left, and considering how bearish and crypto-unfriendly this year was, a lot of investors will likely be pleased to see it gone. Many believe that 2019 will be the year that will correct BTC prices and bring forth the period of great recovery.
But what does that mean for digital currencies? Which ones are a good investment right now? This is something that we will, hopefully, be able to answer right now. Here are the top 3 coins that everyone should keep an eye on in 2019.
1. Bitcoin (BTC)
Of course, we have to start with Bitcoin, the first and largest cryptocurrency. Bitcoin has lost a lot in 2018, and its losses are unparalleled by any other coin. In fact, in terms of market cap, Bitcoin has lost as much as the rest of the crypto market put together.
Many believe that its rapid growth, which started in late 2017 and has brought it to its all-time high, is responsible. That the bearish 2018 was only a one large price correction of the last year’s price surge. Even if this is true, price corrections, luckily, all end sooner or later, and when this one comes to a close, Bitcoin will likely be ready for a big comeback.
2019 is expected to bring a lot that will serve BTC’s rise…
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