XRP Price Surge Good News for Stellar XLM Investors?
Stellar Lumens (XLM), XRP–The recent price surge for XRP, the third largest cryptocurrency by market capitalization, could be a positive signal for Stellar enthusiasts and investors. While the two cryptocurrencies have long been pitted at odds, with a similar technology basis, overlapping leadership and development teams, and target customer base, the coins have also managed to benefit from positive traction generated by the one another.
Following the boom in Bitcoin Cash pricing which took off over the weekend, XRP became the recipient of a massive price run which saw the currency jump over 10 percent on Nov 6. While BCH pricing was undoubtedly tied to the upcoming hard fork of the currency on Nov. 15, it also helped that popular U.S. based exchange Coinbase announced its support for the fork and newly produced coin, throwing its weight behind other major exchange players such as Binance and Bitmex.
While several theories are floating as to the cause of XRP’s price surge, the boom in Bitcoin Cash created a ripple of price improvement for altcoins across the board. With XRP sitting on a greater than 90 percent loss since hitting $3.80 at the beginning of the year, some analysts have pointed out that the currency could be extremely undervalued at present, particularly with the new developments and stories of adoption that have continued throughout 2018.
Stellar likely stands to benefit from both the renewed interest in XRP and the overall buoying effect of the crypto markets. For one, XLM has already had a boost in price following the addition of Basic Attention Token (BAT) on Coinbase, joining 0x as the second of five original currencies announced over the summer under consideration for listing. While 0x and BAT represent two of the smaller market coins of the five announced, Stellar has long been tabbed as a likely addition–making for the most high profile coin of the group. Not only has Stellar established ties to computing Behemoth IBM, but the currency has an appealing price and max supply that would add further diversity to limited offering by Coinbase.
XLM, similar to XRP, has suffered from a precipitous drop in valuation throughout 2018. The announcement of a potential Coinbase listing has managed to keep the coin price stable over the last several months, as investors anticipate the value of the coin appreciating well beyond current levels in the event of a Coinbase addition. While that appears more iminent than ever, with the exchange announcing its commitment to supply many more currencies to customers, the coin could look for a boost in price in the interim if the entire crypto market moves towards a recovery.
Excitement for Stellar development and the utility of the XLM coin has outpaced the market, with the coin employing many of the features that has made XRP so attractive to institutional buyers and those looking to use cryptocurrency as a cost-effective measure for moving money globally. XLM could benefit substantially from a Coinbase listing, in part from new exposure to the 13 million user base in addition to putting the brand under a spotlight.