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
Cryptocurrency Collateralized Debt Positions Are Growing in Popularity
While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle. Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance. One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess. That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS. These projects have managed to find a foothold in the market and have a better chance than most of staying there. While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.
What is a Cryptocurrency CDP?
In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount. There are several examples of this in our day to day lives. Auto title loans from large companies like TitleMax are extremely popular with consumers. Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has. The consumer can continue using their car as long as debt payments are made.
The same concept applies to cryptocurrency CDPs. Consumers are able to put up crypto tokens, such as…
Hodium Presents a Compelling Opportunity for Outsized Investment Returns
I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018. It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants. Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse. The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.
As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha. In that regard, it’s similar to traditional financial markets. I can remember trading during my high school days. It was the late 90s and right in the middle of the dot.com boom. Eventually, however, the euphoria fades away and reality hits hard. Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.
Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques. The professionals employed by hedge funds are the best of the best and have spent years honing their craft. That is why they’re able to make the millions of dollars that they normally…
Behold The Cryptopreneurs – Overcoming The Obstacles Facing The Blockchain Industry
Integrating blockchain technology is fast becoming a necessity for enterprise ventures and small or large businesses, but with a growing number of choices in the tech revolution, it’s difficult to pick a direction without feeling overwhelmed or taken advantage of. This is where BEHOLD THE CRYPTOPRENEURS comes in.
Private keys, the myth of anonymity, and the battle against anarchist ideology are only a few of the difficult challenges faced by businesses that want to incorporate blockchain into their culture. Author Dennis H. Lewis guides the reader through those challenges and helps them discover the true potential of investing in this new economic paradigm.
Every business has pain points that must be overcome in order to branch out and thrive in an ever-changing commercial environment. Blockchain has real world solutions and cryptopreneurs are not limited to the cryptocurrencies they invest in but rather how they seize economic and technological opportunities to make it work for them.
Innovation, trust, and solutions can differentiate your business from all the noise, but without a solid marketing plan, a cryptopreneur can have the best idea and never get far. Remember: a million great ideas times zero market presence equals zero success.
Investors want to know there is public interest and enthusiasm in a project before they commit any money to it. As a cryptopreneur, you are tasked with generating that interest from the…