It is self-evident that the crypto-markets are going through some rough times with the total market capitalization having lost approximately 20% in a single week. Bitcoin (BTC), being the King Of Crypto, has dropped from February levels of $11,500 to current levels of $7,300. The BTC drop has also affected all the other cryptocurrencies including Stellar (XLM). The coin is currently valued at $0.274. However, XLM has seen better days in early January when it was valued at $0.91.
So why will XLM make it to $1?
To begin with, and observing the graph above, the rise to $0.91 was not gradual, but rather a spike over 3 or 4 days that began on December 20th when XLM was valued at $0.21. Back in December and January, the crypto-markets were experiencing some exciting times due to the entry of new individual and institutional traders. The latter happening with the offering of BTC Futures on December 17th.
A similar rally is expected when BTC bottoms out at around $5,500 to $5,700 somewhere in mid to late June. Therefore, XLM could be headed for a big ride also.
A second reason why XLM will make it to $1, is the current relationship the project has with IBM. The Stellar blockchain will be used to launch a token that will help track carbon credits. This means that XLM will gather the global attention of the said large institutions that deal with large carbon emissions through their day to day operations. Most of these firms are on the Fortune 500 list and also keen on new investment avenues.
The third reason, and still on IBM, is that the latter currently has 9 XLM nodes to aid in the cross-border settlement of payments across the globe. XLM is used in the inner workings of the service as a way of sourcing instant liquidity that is then converted to regular fiat at both ends of the transaction. Also on the issue of financial services, several global central banks have expressed interest in launching their own cryptocurrencies on the Stellar blockchain.
The fourth and not exactly the last reason for XLM to rally to $1, is the recent partnership XLM has with the Kin (KIN) project. The team at Kin has decided to fork the XLM blockchain to provide a hybrid solution to its platform. This will allow the Kin ecosystem to be faster, more efficient and with low transaction fees. The use of the Stellar blockchain by Kin will also lead to more projects opting for Stellar to the other options out there such as Ethereum.
In conclusion, the above four outlined reasons will be a contributing factor to XLM reaching the much anticipated $1 value later this year. All we have to do is wait and let the current market decline to bottom out with expectations of a rally afterward.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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