Stellar XLM Reaches One-Month High as Volumes Spike
Stellar XLM rose on Tuesday, following in XRP’s footsteps as demand for cross-border payment platforms continued to grow. Like Ripple, Stellar is benefiting from an abundance of high-profile partnerships and dynamic use cases that extend far beyond core payment functionality.
The value of XLM rose 4.1% to $0.2552, the highest since Oct. 1. A single Lumen was valued as much as $0.2559 earlier in the day, according to CoinMarketCap. XLM also rose against bitcoin, climbing 4% to 0.00003915 BTC.
Stellar’s clean break above $0.2500 has opened the door to an even bigger rally toward $0.3000 and beyond. The digital currency last traded near those levels in late September.
In terms of daily turnover, roughly $78.6 million worth of XLM was traded on virtual currency exchanges Tuesday. That represents an increase of 46% compared with the previous day.
The cryptocurrency market added as much as $6 billion in value overnight, catalyzed by another major cross-border payment service: XRP. The so-called banker’s cryptocurrency is up 13.8% compared with Monday, based on latest available data.
An Abundance of Riches
A protracted bear market hasn’t prevented the Stellar Foundation from making significant progress in democratizing the cross-border payment platform. Jut last week, the XLM-backed Interstellar company announced it had created a new secure payments channel for instant transactions. As Hacked reported in September, Interstellar formed as a new entity following the acquisition of Chain, a promising blockchain startup looking to bridge the gap between distributed ledger technology and traditional finance.
Stellar’s progress has also been marked by a series of high-profile partnerships that have catapulted the platform into the spotlight, leaving little doubt that XLM’s fundamental story continues to improve. Although Stellar’s partnerships with IBM and the Australian government are well documented, it has also forged relationships with Stripe, a payment platform with 100,000 businesses under its belt, and Shift Markets, which provides infrastructure to digital currency exchanges. Already servicing more than 60 cryptocurrency trading platforms, Shift is helping Stellar expand its XLM offerings in emerging markets.
Interestingly, the list of companies launching initial coin offerings (ICOs) on the Stellar protocol has steadily increased despite the slowdown in token offerings. Hacked speculated last year that Stellar could become a major player in the ICO market thanks to its cheap transactions, customizable features and decentralized exchange. At the time, Stellar was ranked 11th by market capitalization. It has since jumped to the sixth spot.
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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