Stellar Prices Jump to Six-Week Highs Ahead of Cannabis ICO

Stellar’s XLM currency rose on Tuesday to its best levels in six weeks, bringing its total market cap to a high of $5.9 billion. Although there was no immediate catalyst for the rally, excitement over a Stellar-backed cannabis ICO may have contributed to currency’s oversized gains.

XLM/USD Price Levels

The value of XLM reached a high near $0.32 on Tuesday, having gained nearly 12% from the previous day. The cryptocurrency was last seen trading at $0.30, where it was up 6.2%.

XLM, which trades against other major cryptocurrencies, was last valued at 0.000038 BTC (-2.6%) and 0.000597 ETH (-1.7%).

By holding gains, Stellar overcame a broad reversal in the cryptocurrency market that began around 15:00 UTC. It remains the eighth-largest cryptocurrency by market cap and the 16th most traded by volume.

More than $112.5 million in XLM exchanged hands on Tuesday, according to CoinMarketCap. Binance accounted for roughly 30% of the total while Upbit processed more than a fifth of daily transactions.

Stellar: Future ICO Platform

In addition to riding the momentum of the most recent cryptocurrency recovery, Stellar is benefiting from positive speculation about its utility as an ICO platform. Case in point: Canadian cannabis company Nezly will launch its Stellar-backed token raise on Friday following a six-week pre-sale. The company is utilizing XLM blockchain “for enhanced crypto security, speed and robust intelligence.”

Nezly has a hard cap of $36.5 million U.S., with 120 million tokens available for purchase. The token raise accepts bitcoin, Ethereum and U.S. dollars as payment.

In November, Smartlands became the first ICO to launch on the Stellar network, raising a total $1.75 million.

For many, Stellar is one of a select few blockchains that can compete with Ethereum for ICO dominance. When it comes to ICOs, Stellar has several unique benefits, including decentralized exchange services embedded directly on the platform. This makes it easier to trade new tokens without having to pursue listings on major exchanges.

Stellar is also said to have customizable features that could appeal to many segments of the ICO market, which cuts across several industries and sectors. At the same time, it has purposely limited certain features to keep malicious actors from exploiting the program.

It will take a lot of work for Stellar to unseed Ethereum as the go-to ICO platform, but there are features in place that could make it more popular among developers wishing to launch a new token.

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