Stellar Lumens Leads Battered Crypto Market Higher on Thursday
Stellar, Cardano and a handful of other coins breathed new life into the cryptocurrency market on Thursady following one of the biggest flash crashes in history.
Thursday’s altcoin rebound was led by Stellar Lumens (XLM), the platform designed for building financial products. Stellar’s XLM token rose more than 20% to a session high of 56 cents. At press time, it was up 19% at 49 cents.
The XLM digital currency bottomed out near 30 cents on Wednesday, its lowest level of the year.
The latest up move gives Stellar a total market cap of $8.3 billion on daily trade volumes of $473 million, according to CoinMarketCap. At its peak, Stellar’s total market cap was worth well over $16 billion.
Stellar is one of a handful of cryptocurrencies expected to resume its bullish campaign, according to a recent price forecast from Finder.com. As reported by Pound Sterling Live, Finder.com expects XLM tokens to rise triple digits percentage-wise for the remainder of the month. Cardano is expected to lead the altcoin rally, based on the report.
Cardano was up more than 15% at the start of Thursday trading to reach 64 cents. NEO, IOTA and Ripple XRP also put up strong gains. These altcoins have been at the center of the cryptocurrency market’s meteoric rise since the start of 2018. Each of them has successfully eaten away at bitcoin’s share of the market, which recently fell to as low as 32%.
Although cryptocurrencies are no strangers to volatility, the total market experienced an unprecedented decline over the last three days. At its lowest, the market’s total value reached $414.9 billion. That was roughly half of the $835 billion peak set earlier this month.
At last check, the total crypto market cap was worth roughly $548 billion. The ecosystem is expected to remain volatile ahead of South Korea’s decision on domestic cryptocurrency exchanges. Regulators in the Asian country are reportedly considering various measures to reduce or eliminate speculation in digital currency trading. This is a concern for investors because South Korea is an international center for crypto trading, which makes any attempt to limit trading a potential threat to capital flows. The country alone represents about a third of global bitcoin trades.
Barring any major disruption on the Korean peninsula, history has taught us that the crypto rebound is likely to extend further, possibly into new highs. Investors have routinely bought on major dips in anticipation of further price accumulation in the future. In recent weeks, the gains have been driven largely by altcoins. Prior to that, it was bitcoin that did much of the heavy lifting.
Regulatory uncertainty continues to be the thorniest issue facing cryptocurrencies, with each nation and jurisdiction reaching its own conclusion on how to govern the market (if at all). The debate over regulation will only heat up as cryptocurrencies become vital components of the digital economy and monetary system.
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.
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