Stellar Lumens (XLM) Hits Two-Week High, Overtaking Litecoin in Market Cap
Stellar Lumens (XLM) rose sharply on Monday, overcoming a period of mostly lackluster moves that had pushed the cryptocurrency lower in the market cap rankings.
Stellar XLM rose 6.5% on Monday to trade at $0.1225, according to CoinMarketCap. That’s the highest level since Christmas and a significant departure from the mostly lateral moves of the past week.
The cryptocurrency also advanced relative to bitcoin, with XLM/USD climbing 2.1% to 0.00003040 BTC.
With the gain, Stellar’s market cap climbed back above $2.3 billion, overtaking Litecoin for sixth among active cryptocurrencies. Stellar dropped from fourth to seventh in the last month as Litecoin and bitcoin cash staged large recoveries. For a comparison, check out CoinMarketCap’s historical snapshots index.
Stellar sees very minimal trading activity relative to its peers. Volumes reached $97 million on Monday, compared to $683 million for LTC and $805 million for EOS. The largest markets for Stellar transactions are ZB.com (XLM/USD), Exrates (XLM/BTC) and Binance (XLM/USDT and XLM/BTC).
XLM was one of several cryptocurrencies on the rise at the start of the week. The rally was sparked by a sharp overnight rally in bitcoin. The leading digital currency rose 6% in less than 30 minutes. Read more: Bitcoin Crosses $4,000 Following Sharp and Sudden Rally.
Where’s the Volume?
XLM continues to perform very well relative to its peers despite seeing only a small fraction of their trade volume. This will have to change if XLM is to become a household name among crypto holders. Lumens are available on more than a dozen virtual currency exchanges, but a lack of fiat pairs may be limiting uptake of the coin. According to latest market data, Kaken is the largest exchange for fiat transactions via XLM/USD and XLM/EUR.
Stellar founder Jed McCaleb recently admitted that his company has done a poor job of marketing XLM to the masses. Outside of the crypto sphere, people only have a vague idea of what the project entails or how to actually buy Lumens. Efforts to springboard adoption were announced two months ago by Blockchain.com, which unveiled a $125 million airdrop of XLM to existing wallet holders.
In the author’s view, the lack of marketing around Stellar is a strong indicator that the project’s developers are focused on creating a viable product rather than selling an overhyped cryptocurrency. False hopes and misleading advertising dominated the crypto boom of 2017, and this may have hastened the collapse over the next 12 months. At the same time, Stellar has developed strong industry partnerships with the likes of IBM, Deloitte and ICICI Bank. The company clearly has a long-term vision to disrupt traditional finance.
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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