Altcoins
Stellar (XLM) Primed to Dominate Crypto Markets Moving Forward
Earlier on in the year, the team at Stellar (XLM) anticipated that the number of transactions on the network was going to increase in volume. This is an indicator that they probably had expected good developments with IBM such as the cross-border payments that aim to become near-instant thanks to the Stellar blockchain.
For Stellar to keep up with the demand of a high throughput on its network, the team at the foundation have plans to implement the Lightning protocol by December 1st this year. The need to scale is in tandem with the foundation’s goal of wanting Stellar to become the world’s digital payment rail thus setting the stage for a Stellar vs. Ripple showdown in the remittance industry.
Scaling through Lightning
Lightning was originally proposed for the Bitcoin blockchain, but it has found its uses also on the network of Litecoin and Stellar by this December. Lightning works by allowing users to make off-chain payments through routers and hubs. This then means that Lightning can support cross-protocol payments from one blockchain to another. A user in the Bitcoin network can send to a receiver who wishes to receive XLM on the Stellar Network.
The developers at Stellar have been busy creating payment channels on other blockchains beyond Bitcoin. They include those of Ethereum and ZCash.
Stellar is Superior to Ethereum
In a recent post, Global Coin Report had highlighted that the Stellar platform was far more superior to Ethereum’s. Key to this argument was that the Stellar smart contracts were safer with a bunch of extra features such as multi-signatures, batching, atomicity, sequencing, and time-bound functions.
Weiss Ratings seems to agree with this conclusion when they tweeted the following concerning the Ethereum platform exploring scalability through ZCash’s ZK-SNARKS.
A form of cryptography pioneered by
#zcash, named zk-snarks, might help scale#ethereum, By using the tech,#ETH can potentially scale up to 500 tps, without relying on 2nd layer solutions. That’s still way too slow – slower than#XRP,#EOS,#XLM, etc.
As earlier mentioned, the Ethereum network has been facing scalability issues that have been blamed for the recent decline of ETH in the markets. With ZK-Snarks, Vitalik Buterin concluded that the throughput of the network could be improved to 500 transactions per second.
Vitalik commented that:
We can actually scale asset transfer transactions on ethereum by a huge amount, without using layer 2s that introduce liveness assumptions (eg. channels, plasma), by using zk-SNARKs to mass-validate transactions.
Future of XLM
The crypto-markets seem to have regained some much-needed volumes since the weekend and at the moment of writing this. Bitcoin is trading at $6512 and down by 0.52% in the last 24 hours. Looking at Ethereum, it is still holding onto the number 2 spot with XRP not far behind.
XLM is currently valued at $0.257 and up 1.74% in the last 24 hours. This value could soon follow a similar trajectory as the one seen by XRP in the past few days. This is based on three factors.
Firstly, is the earlier mentioned news that the Lightning protocol will be implemented on the 1st of December. Secondly, the cross-border payments solution with IBM has been speculated to use XLM to source instant liquidity in a manner similar to how xRapid uses XRP. Thirdly, the recent acquisition of Chain by the Stellar foundation, and the creation of the Interstellar venture should be able to aid XLM to raise in the markets in the next few weeks.
What do you think is the future of XLM in the markets? Please let us know in the comment section below.
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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 and read our full disclaimer.
Photo by Mar Cerdeira on Unsplash
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.
SOL’s Bullish Cues
Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.
In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.
Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million,…
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