The price of Stellar XLM also known as Lumens is at $0.37 right now. The price of XLM has dropped by roughly 50% in the preceding six months, after reaching an all-time high of $0.7985 in May 2021. Stellar is ranked 22nd on coinmarketcap, having a 0.36 percent market share.
It can be observed throughout the last six months that as soon as the price reached an all-time high, it quickly plummeted to $0.21. Nonetheless, the price has rebounded and is currently testing that growth zone once more. As the cryptocurrency market has consolidated around the growth zone in recent months, it is projected that demand will finally outpace supply, luring buyers to a considerable extent. However, this is not the case with stellar. Why is stellar growth so slow?
Stellar aims to reach out to the world’s “unbanked” and make it easier for money to travel across borders. The issue is that national governments and businesses are taking longer than expected to adopt cryptocurrency. Its low charges are one of its most significant advantages for international money transfers. Each Stellar Lumens transaction costs only 0.00001 XLM, which is the equal of 0.000038 cents. This is far less expensive than typical foreign transfer transaction fees. It is common for them to cost 1% or more.
Stellar Lumens reached a big milestone on Oct. 6. MoneyGram International, a large international remittance firm, has joined as a client. The Stellar Foundation has inked a deal that would allow it to create a payments bridge that will make money transfers more efficient. The platform will allow for near-instant USD Coin settlement. USDC, a stablecoin linked to the US dollar launched by Circle, is the tenth most valuable cryptocurrency, with a market value of $32.2 billion.
It’s also unique that the crypto and payment processes will be handled by a US bank. To settle USDC transactions, MoneyGram’s network will be connected with the Stellar blockchain, and United Texas Bank will serve as the settlement bank between Circle and MoneyGram.
Denelle Dixon, CEO of the Stellar Development Foundation, had this to say about the deal:
8/ Learn more at https://t.co/kfbMsG0c5j. We can’t wait to share more as we build.
— Denelle Dixon (@DenelleDixon) October 6, 2021
Stellar was also engaged in the development of Canada’s stablecoin (VCAD), which was created on the Stellar blockchain by Stablecorp and VersaBank. These partnerships are a clear signal that Moneygram wants to move forward and get rid of the bad experience it had with Ripple. In 2019, Moneygram and Ripple announced a partnership and lasted nearly two years and ended in March 2021 after the SEC formally initiated legal proceedings against Ripple, accusing it of using XRP as a means of issuing unregistered securities.
If they use XLM as the foundation platform for stablecoin transactions, the price will soar. The announcement of collaborations and ecosystem-focused activities undoubtedly boosted the coin’s social volumes and price. XLM, in fact, challenged its previous multi-week high of $0.4 on October 17.
While institutions are aggressively looking for investment possibilities in the blockchain area, they are wary of authorities’ ambiguous position on digital assets. Institutional investors like Bitcoin and Ethereum, for example, since they are considered commodities. XRP, XLM, and other cryptocurrencies, on the other hand, do not have this difference, which prevents these high-net-worth individuals from investing in altcoins.
Several market analysts believe the recent deals would boost the Stellar Lumens price to a new high. However, for the time being, overhead resistance has kept the price down.
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Image: Sergei Tokmakov Terms.Law
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