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
Bitcoin Volume Improves — Is A New Bull Run About To Start?
After more than half a year of price drops and losses in value, Bitcoin’s price has finally demonstrated signs of stability. For weeks, Bitcoin managed to remain above the price of $6,550 per coin, which was followed by a small price surge that has allowed the coin to reach $6,600.
Not only that, but Bitcoin’s volume also saw a 12% increase that has taken it from $3.2 billion to $3.6 billion according to CoinMarketCap. While this state of the market did not include all the altcoins, with some of them even experiencing losses, the situation regarding Bitcoin did look promising.
However, the new situation has changed that, as both investors and analysts woke up to the news of crypto prices going down.
Bitcoin volume predictions
Cryptocurrency analysts around the world have been predicting that the recently-balanced situation regarding Bitcoin and many altcoins will not last. While some believed that Bitcoin volume will go up, others have been claiming that it will drop once again, as it has finally happened.
At the moment, Bitcoin has managed to drop below what was recently believed to be its bottom, with a new price being at $6,297. Instead of reaching milestones such as $6,800, and then $7,000 mark as many have hoped, BTC actually dropped by around 6%.
For a while, Bitcoin has been showing signs that it is ready to grow once more. However, the trouble once again lies with the…
Ripple, Ethereum, Bitcoin, and the crypto-markets all down, why?
Today, the crypto-world woke up in a bloodbath, creating a lot of panic for the investors. Despite the expectations from 2018 Q4, the crypto-market is showing no sign of recovery as only one cryptocurrency in the top 50 is green at the moment.
Cryptocurrencies like Bitcoin, Ethereum, and Ripple (XRP), are all suffering in the dips and from the weight of the bears. It is important to know that as a result of today’s bearish trend, the market has laid off more than 5 percent of its value (US$13 billion) in the past 24 hours.
In the past 24 hours, Bitcoin has gone down by 4.26%, and it is currently trading at $6,289. So-called BTC competitors have accumulated bigger losses: Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, and Litecoin. Ethereum is down more than 11 percent, trading at $201.15; Ripple’s XRP in red by more than 13 percent, trading at $0.4047.
Bitcoin Cash price has also crashed more than 11.5 percent, trading at $450.91; EOS is down by 9.91 percent, trading at $5.30; Stellar has plunged by more than 11.8 percent, trading at $0.213; and Litecoin is currently in red by 9.50 percent, trading at $52.28. In short, the whole market in a severe bloodbath, pretty much like the global market.
Are Bitcoin Whales Stabilizing the Market?
Bitcoin whales, which is a popular term for BTC’s largest holders, have always been the largest influencers on Bitcoin’s price. In fact, many analysts, experts, and even regular investors have been tracking what the whales are doing. Their actions were taken as an indication of what’s to come, and whenever a whale was about to sell BTC, a drop in price was soon to follow.
This has earned them a reputation of the market’s largest destabilizers, which did not make them especially popular in the crypto community. However, according to new data, it is more than possible that Bitcoin whales are actually working on keeping the market stable, instead of causing more chaos, as everyone was led to believe.
Bitcoin whales are keeping the market in check?
Earlier this year, in August, a new rumor appeared, claiming that a $2 billion whale was disrupting the market’s already fragile stability. Reports of BTC sales as high as 50,000 coins per month have caused a 15% drop in Bitcoin’s own value. Speculation regarding these sales followed, with whispers of shadowy deals dominating the discussion forums.
Bitcoin investors, large and small, felt threatened by these giant holders, with many of them believing that the entire crypto world could collapse on their smallest whim. In order to determine whether these fears were justified or not, an intensive analysis was conducted. The analysis has targeted 32 largest known whales, with attempts to find…
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