If you have been a keen follower of cryptocurrencies, you must have heard about Stellar.
Developed by Stellar Development Foundation, Stellar is a relatively new platform in the crypto space that seeks to streamline digital asset transfer in the banking industry. In 2017, Stellar was a decent performer, going against the current of most altcoins that were on the decline. It entered 2018 having gained an impressive 900%. Presently it is trading at US$ 0.4439.
With its strong presence and steady rise, Stellar has garnered the attention of stakeholders in the financial space. Stakeholders are confident that it will continue its upward trend in 2018.
Why is Stellar so important in 2018
To understand the excitement that Stellar is generating, you have to know what value its success holds. Stellar is made to provide faster, more secure means to circumvent the fiat systems Nostro-Vostro process. This process makes cross-border transfers long, tedious and reduces the value to the end-user. Stellar implements the Blockchain to target the global unbanked demographic. It would offer a faster means to remit monies in emerging markets. Additionally, it would be an ideal platform to distribute bank loans. This makes it look like another popular blue-chip cryptocurrency, Ripple.
Based on such a solid premise, it is no surprise that more than 30 banks are expressing a serious interest in using their network. This may also be the reason pundits are pegging it to close the year at US$0.7. It is likely to hit the dollar mark by 2021. If indeed, banks adopt its use, it would appreciate in value and drive up demand.
Stellar shares a protocol with another cryptocurrency, Ripple. The only difference between the two is that Ripple caters to a more established section of finance. Stellar is driven by the need to provide value to a more marginalized section of the financial. Stellar transactions are overseen by a rising number of authorized agents.
Should I invest in Stellar?
At the moment, Stellar is enjoying a good run. It is ranked among the top 5 currencies. Hong Kong’s OKEx Exchange has included it in their listings. Its trading volume is impressive. So much so that giants such as IBM are looking at it to boost transactions.
However, before you jump in the perceived success of Stellar, you might want to hold on. While the chances of you cashing out are slim right now, if you invest when there is a dip of at least 10%, your returns would be anything between 55 and 60%.
As successful as it has been, signing collaborative contracts with other providers, Stellar is showing high volatility. However, if all the partnerships that it is getting into are anything to go by, investors could be looking at a very healthy investment option.
Right now, its statistics are looking good. If you want to expand into cryptocurrency, Stellar is a good option. If for nothing else, its promising development potential.
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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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