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Why Investors Shouldn’t Be Concerned Over Stellar Lumens (XLM) Liquidity

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Stellar Lumens
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Stellar Lumens (XLM), which ranks eighth with a market capitalization of $3,947,869,328 (as of April 9, 2018), is listed in only a few exchanges. Unlike the big currencies like Bitcoin and Ethereum, which have listed on more than 400 exchanges, Stellar is listed in only 79 exchanges. As evident from the market response of the lesser-known altcoins, Stellar, like any other altcoin, struggles with its liquidity. For many traders, the dearth of buyers/sellers of a currency is a major put-off as such currencies are difficult to trade on exchanges.

A Review of Stellar’s Liquidity

As per the definition, liquidity suggests the extent to which an asset can be rapidly bought/sold by investors without affecting the price of that asset. Consequently, the term “market liquidity” signifies the degree to which a market enables assets to be traded at a stable rate. An asset, which has little or no liquidity, is critical to trade on exchanges. This can be explained with an example: an illiquid asset like an antique artwork can be extravagant and costly, but in the absence of a steady market for such art, the owner will have to sell it at a discount if he/she wants to sell it quickly.

When compared to the major currencies in the market, such as BTC, ETH, and LTC, which are listed in more than 400 exchanges, Stellar (XLM) is listed in only 19% of the total exchanges. Quite naturally, such low liquidity is a huge concern for traders. This altcoin, which comes with several promising features, should improve its liquidity to be traded more frequently in the market. As for XLM traders, such low liquidity can be alarming. However, going by some of its features on offer, it is unjust to assess its profitability on the basis of its availability to the traders.

Why Stellar’s Low Liquidity is Not a Concern for Investors?

From its very inception, Stellar has established itself as a highly rewarding altcoin. However, a quick market analysis will reveal that it is not entirely free of limitations. For instance, a lack of alternative anchors can be regarded as a big turn-off, apart from the fact that a Stellar account can only be topped up in lumens. Besides these limitations, one of the major drawbacks of Stellar is its low liquidity. As evident from the market analysis, Stellar (XML) is listed in less than a hundred exchanges, while other contenders like Bitcoin Cash and EOS, with visibility in 262 and 116 exchanges respectively, have much greater availability.

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While it’s quite natural to be alarmed as investors, the low liquidity is not a big concern for the traders, report the analysts. As a worthy competitor in the crypto-market, it boasts a number of worthwhile features, from lightning fast transactions, low transaction fees to outstanding popularity. At any rate, this promising altcoin, which is traded at $0.196834 at the time of writing, can surprise its investors in many ways.

Ways Stellar Can Enhance Its Liquidity

As discussed at length in the earlier segments, Stellar’s (XML) liquidity is a major concern at the moment. With Stellar introducing a range of exciting updates, Stellar can emerge as a formidable contender to the major currencies, provided it improves its availability to its users. Although Stellar is not listed in a large number of platforms, it is available in many prominent exchanges such as Binance, Bittrex, Upbit, and Kraken. As per the trade volumes, these are the largest exchanges in the market. So, spreading the awareness can go a long way in attracting buyers/sellers to this profitable asset. Also, the regulatory body of Stellar can deploy the currency in real life transactions. Given the fact that it is recognized for its low-cost financial services, Stellar can embrace the ripe market in the developing countries to enhance its user-engagement.

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 and read our full disclaimer.

Image courtesy of Taco Witte via Flickr

Altcoins

Ripple XRP Mega Breakout: What’s Next?

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Ripple XRP mega breakout
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The Ripple XRP mega breakout that we were calling for happened and happened much quicker than anyone expected. As we said yesterday:

Nonetheless, IF, Ripple is capable of going ‘topside’ of the .38 figure at any point in the days/weeks ahead, such development, should it occur, would likely trigger its next advance into the .42 – .47 zone, representing a 30-40% move from present levels. On the flip-side, the .25 – .26 area should offer short-term potential support.

XRP is now sitting at .51704  as we write this article this morning, representing gains of 61% since we alerted our readers and our Global Elite email newsletter members.

Ripple XRP Mega Breakout

The Ripple XRP mega breakout is significant because it’s the first time XRP has been above its 50-day moving average since May. Right now, the RSI is approaching 80, so we are in overbought territory and we expect the price to consolidate around the .42 to .47 level before resuming its uptrend.

While some are looking at this as an opportunity to short XRP, we are not of that camp. While some can book some profits and use a trailing stop, any integration of XRP with xRapid has the ability to create a tremendous move in XRP. As Travis Kling said this week on the Off the Chain podcast with Anthony Pompliano, XRP could be the quickest five-bagger investors…

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Altcoins

Litecoin Cash (LCC): The potential mover?

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Litecoin Cash
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Litecoin underwent a hard fork in the past, and that is what led to the creation of Litecoin Cash. Bitcoin has also experienced a hard fork, which has led to the creation of Bitcoin Cash, so this trend is not necessarily brand new.

Forks have occurred pretty often now in the cryptocurrency community, and the perception is that it probably will continue to, as long as the need (forks are often created to overcome issues faced by the originals) remains there.

While the market has been bearish for most of the year, it has been showing some definite signs of life, especially when we look at the kind of price action that has been happening with Ripple recently. Litecoin is also rising in anticipating of its hard fork, which is to be expected.

For those who are unaware, Litecoin Cash was created earlier this year. 10 Litecoin Cash was given to every investor who had 1 Litecoin – and that one move, it’s easy to see, was very massive concerning value.

Charlie Lee, the founder of Litecoin, has come out against LiteCoin Cash, calling it a scam. Many cryptocurrency influencers have come out against Litecoin cash, although there are still others that believe that this is only because the project threatens them.

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Altcoins

The Stage is Set for Stellar XLM vs XRP

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XLM vs XRP
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The digital asset of XRP, did something spectacular on the 18th of September when it shocked the crypto-markets by rising in value by 21%. In a time period that was less than 5 hours, XRP spiked from levels of $0.273 to those of $0.332 and has continued rising. The digital asset is currently valued at $0.36.

xRapid Factor

The reason for the sharp increment in value of XRP was news that the Ripple company was going to launch xRapid in the next month or so. This was after the firm’s head of Regulatory relations for Asia-Pacific and the Middle East, Sagar Sarabhai, made the following comments during a CNBC interview on the 17th of September:

“I am very confident that in the next one month or so you will see some good news coming in where we launch the product live in production.”

Stellar’s Cross-Border Payments

The news of Ripple launching xRapid has come 2 weeks after the Stellar project and IBM, announced that they were entering the industry of cross-border payments through their new service known as IBM Blockchain World-Wire. The new payment settlement service has been quoted as being ‘near instant’ meaning that it will probably rival the transactions time seen in the xRapid pilot tests of 2 – 3 minutes earlier on in the year.

Stellar Acquiring Chain

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