After the exponential rise of XLM (Stellar Lumens) in 2021, the Stellar price has reached a whopping 2.2B USD as of 7th March 2023.
Stellar is a fundamentally strong cryptocurrency with potential. And this is one reason why it has grabbed investor attention worldwide.
Now, if you have been planning to invest in the Stellar XLM, here are six solid reasons you should go ahead right away!
- Stellar Lumens are practical
As crypto payments compete with centralized payment systems, XLM provides its value through practicality. Stellar accepts approximately 1000 to 5000 transactions per second.
A big deal is that Crypto makes payment faster and competes with centralized payment methods like Visa and MasterCard. Besides, Stellar (XLM) is a viable alternative, especially for unbanked people worldwide. Second, there is competition in the crypto market. Over 16,000 cryptocurrencies exist right now, most of which are speculative.
Stellar is emerging as a viable payment option. Bitcoin and Ethereum are already established as stores of value and utilities. People who don’t like banks, or won’t have access to them, or businesses that want to jump on this growing crypto payments wave, will be the winners.
- Stellar Lumens has KYC functionality
ECB President Christine Lagarde claims bitcoin can be used to launder money, but Stellar does not. The ECB President does not have a KYC feature for Stellar. Stellar’s value could increase as regulators favor Stellar in critical markets like the US and EU. It’s about more than just getting accepted by regulators but also competing with digital currencies issued by central banks.
- Stellar Lumens supports smart contracts
Stellar’s blockchain lets you build assets and launch tokens and decentralized exchanges. Since Stellar is the native token, w, and the decentralized exchange might drive the value of Stellar.
Over the last four years, people have started using decentralized exchanges for crypto transactions, and there’s also been a better understanding of centralized exchanges and security issues. Turkey’s biggest exchange lost over $2 billion last year.
Decentralized exchanges such as Stellar do not have such issues. It was shut down by its owner and fled. DEXs will dominate the exchange market soon, and established ones like Stellar DEC will take over. Stellar’s blockchain has lots of value, so that’s why it’s so valuable.
- Several exchanges list Stellar Lumens
One of the biggest factors affecting cryptocurrency growth is its listing on exchanges, and it affects credibility, liquidity, and price spikes whenever a new exchange adds Crypto. Accessibility and liquidity are critical, and Crypto is more accessible to retail investors and institutions, making the market more efficient as demand grows.
Stellar has liquidity over most altcoins. More people will learn about Stellar, which exchanges stellar lumens worth millions. Liquidity counters whale activity. In contrast to XLM, XRP proves that liquidity protects against whale selloffs.
The XRP co-founder Jeb McCaleb sold a bunch in 2021, which did not affect the price significantly. This demonstrates that highly liquid cryptos are usually not affected by a single entity.
- XRP is like Stellar Lumens but safer
Both XRP and XLM aim to be part of the cross-border payments market. XRP, for example, has been aggressively marketed in Europe and Asia. Stellar Development partners with companies like IBM to develop great products. It is less risky than XRP, which might make it more appealing over time. As a result, the SEC has had issues.
Also, it’s fast and cheap to settle cross-border transactions. Investors may realize cross-border payments will increase XLM’s value. XLM’s biggest value driver might be the mainstream acceptance of cryptocurrencies globally.
- Market gains for Stellar Lumens
Stellar Lumens is well, positioned for adoption. Its fundamentals look good. Firstly, cryptocurrencies have finally entered the mainstream, and interest from institutional and retail investors has spiked since the market crossed the trillion-dollar mark.
Goldman Sachs, JP Morgan, Jacob Rothschild, and some other financial institutions now target crypto exchanges. The regulatory climate for crypto is improving, and the new SEC chairman may open up crypto ETFs.
Cryptocurrencies will have a big year in key markets like the US. Institutional investors heavily adopt Bitcoin, but any rise in Bitcoin’s price will benefit altcoins too.
Stellar (XLM) is an altcoin with a great use case. Due to its ability to reduce cross-border payment costs in the financial industry, Stellar has an advantage and a full-fledged cross-border payment system. A blockchain-driven world will help it grow.