Cryptocurrency
Markets
Buying on the Dip: Why Stellar Lumens Price Drop Has Created an Interesting Opening
The price of Stellar Lumens (XLM) looks to be running out of fuel this month. Tracking the XLM price live throughout August, the USD value has dropped by more than 10%. As the market fired up on August 9, the Stellar Lumens price in dollars was down to a paltry $0.20. However, despite the marked drop in value since August 1, XLM is still one of 2018’s better performers. With the crypto market as a whole taking a bearish trend this year, very few tokens have offered much positive momentum. However, if we review the price of XLM in July, there was a clear upswing. After holding steady around the $0.21 mark for the early part of the month, a spike occurred as we moved towards the final two weeks of July. At its peak, the Stellar Lumens price chart topped $0.33 on July 27.
For investors sizing up potential sleepers, Stellar could be the project to back for the rest of 2018. In fact, the bearish sentiment in recent days may have provided the perfect dip for those looking to bag a bargain. Looking forward, the XLM price could benefit from some interesting partnerships. Back in April we saw IBM signal its intent to join the crypto market and use Stellar as its gateway. Dubbed StableCoin, the new venture will be based on the Stellar blockchain and offer asset-backed tokens with value directly linked to assets such as gold.
Stellar Lumens Price Might Not Moon but that Doesn’t Matter
Beyond its work with IBM, Stellar has been chosen as the platform for micropayment provider, SatoshiPay. Thanks to its transactions-per-second rate and low fees, Stellar has been seen as the perfect way to facilitate small, cross-border payments. Interestingly, what the SatoshiPay innovation offers beyond being another use case for the technology is a brush with regulation. Although Stellar itself hasn’t been listed with a regulatory body, SatoshiPay is. In fact, even though it’s not on our ICO watchlist for 2018, SatoshiPay is preparing to go live on the AIM exchange. Doing this will not only attract new funding but prove that Stellar’s technology is capable of thriving in a financially regulated environment.
Based on the available evidence, the price of Stellar Lumens could certainly increase in the coming months. Although it’s still something of an emerging crypto, the fact it’s bucked the trend and shown signs of strength in 2018 can’t be ignored. When you combine this with some interesting innovations and the current slump, the XLM price is approaching an attractive buy point. Looking longer term, it may not be the crypto to deliver huge gains. However, for those looking to make a quick investment and salvage an otherwise disappointing 2018, XLM could be the coin to buy.
*Information in this article shouldn’t be taken as investment advice.
More Resources