After Massive Correction, Stellar Lumens Looks to Capitalize on Lightning Network

As far as percentages go, Stellar Lumens was one of last week’s biggest losers. After recouping most of its losses Monday, the world’s eighth largest cryptocurrency is looking to take flight on a planned implementation of the Lightning Network protocol later this year.

XLM/USD Price Levels

It has been a wild seven days for Stellar’s XLM. The cryptocurrency fell from a high of $0.30 last Wednesday to a low of $0.16 on Sunday – a decline of roughly 47%. By comparison, the broader cryptocurrency market fell by 28% over the same period. At current values, Stellar owns a market cap of $4.6 billion. That’s roughly $200 million shy of NEO and $400 million behind Cardano.

XLM staged a large recovery on Monday, having rebounded more than 50% from the weekend lows. The cryptocurrency is up more than 11% in the last 24 hours and was last seen trading at $0.25, according to CoinMarketCap.

With ether as the quote currency, Lumen rose more than 5%. It also advanced more than 3% against bitcoin.

In terms of daily transaction volumes, nearly $82 million worth of Lumen traded hands in the last 24 hours. Binance and Upbit each turned over roughly 27% of the daily total, based on latest available figures.

Stellar Goes Lightning

Originally designed for the bitcoin network, Lightning is quickly spreading to other blockchains, chief among them being Stellar. The non-profit behind Stellar announced last month that it is planning to implement Lightning later this year. Although the platform does not require Lightning, the protocol will have a significantly “positive effect on Stellar’s long-term scalability and security,” the roadmap said.

It added: “Of course, unlike bitcoin, Stellar doesn’t need “saving” . . . we’re just going from a good place to an even better one,” the roadmap said, adding that it will retain the services of bitcoin core developer Jeremy Rubin to implement the protocol.

On Monday, Stellar detailed the specifications behind Lightning adoption. The new roadmap includes a testnet of Lightning on April 1, followed by state channels beta implementation four months later. The Lightning Network beta is expected Oct. 1, followed by livenet launch on Dec. 1.

The roadmap also claimed Stellar to be the most “deployment-ready” cryptocurrency among the major platforms, as evidenced by the following:

Source: Stellar.org.

According to Stellar founder Jed McCaleb, much of the impetus behind this kind of scale are the partners backing his project. Some of the biggest companies listed on Stellar’s partner directory include IBM, Deloitte and Stripe.

Lightning Labs, the company behind the Lightning Network, has been progressing swiftly on beta testing of the payment system. Last week, it announced the beta version of its Lightning Network Daemon (LND), which promises to bring more scalability and faster payments to the bitcoin network.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi