Stellar Lumens [XLM] Reaches The Stars After A Series Of Positive News
A Series Of Positive News Regarding Stellar
Over the past couple of days, Stellar has become a popular topic in the cryptocurrency community, as a series of announcements and news pieces indicate that the Stellar blockchain is gaining traction.
Coinbase Exploring Listing of Stellar [XLM]
Last week, Coinbase unexpectedly announced that its team is looking into adding five altcoins, which are Stellar, Cardano, ZCash, Basic Attention Token, and 0X.
Despite not guaranteeing the addition of these cryptocurrencies due to the potential regulatory and technical constraints, the five cryptocurrencies singled out by Coinbase still outperformed a majority of the market, with Stellar moving ~10% upwards on the day of the announcement.
Coinbase listings have historically been a positive sign for cryptocurrencies, as the exchange is one of the most publicized cryptocurrency-related companies in the entire world. As a result, the eyes of market on-lookers often fall upon Coinbase, so an XLM listing would hail in higher levels of consumer and institutional adoption, and therefore, prices that match increased adoption.
The American exchange didn’t give any clear timelines regarding the additions of the aforementioned cryptocurrencies, but it was made clear that ongoing updates would be given to its customers through the Medium and Twitter social media platforms.
IBM Utilizes Stellar-Based Stablecoin In Cross-Border Payment System
As Ethereum World News reported on Tuesday, IBM has just announced that it will be utilizing a new cryptocurrency for its cross-border payments system, instead of XLM. The stablecoin, fittingly named Stronghold USD, was launched on the Stellar blockchain on Tuesday after some time in development.
IBM’s current utilization of XLM in its cross-border payment system has proven to be rather costly, as payments require fiat to be converted into XLM and then back into another fiat currency, often resulting in high fees/volatility.
But with the integration of the Stellar-based Stronghold USD token, it is expected that the payment system will begin to offer lower fees, while also increasing payment efficiency.
Once IBM’s payment system is ready for retail and institutional use, many expect for adoption for the Stellar blockchain to increase rapidly, resulting in increased prices.
According to the company behind the stablecoin project, the recently-issued Stronghold tokens can also be used by businesses, like financial institutions, multinational corporations, and asset managers.
Stellar Receives Sharia-Compliance Status
Stellar has become the first cryptocurrency/decentralized technology to obtain Sharia-compliance as Ethereum World News recently reported.
According to a statement from the Stellar Foundation, the Shariyah Review Board (SRB), a leading Sharia advisory agency, has given Stellar a certification for payments and asset tokenization.
So what does this mean for the Stellar ecosystem?
A collaboration between the Stellar Foundation and the SRB will help to grow Stellar adoption in regions where “financial services require compliance with Islamic financing principles.” So specific regions in countries like Kuwait, Qatar, Saudi Arabia, the UAE and Indonesia will be able to use Stellar, opening the use of XLM and related products to millions of new consumers.
Stellar Surpasses Litecoin’s Market Cap
Despite following Bitcoin’s run-up on Tuesday, Wednesday saw XLM surge, reaching a high of 30% up on the day. The cryptocurrency now sits around ~29 cents, still outperforming market leaders like Bitcoin. It is likely that the three pieces of news that were aforementioned have played a large role in boosting XLM’s price over the past three to five days.
With this ‘stellar’ day, the market cap of XLM has surpassed Litecoin’s, and is now the 6th largest cryptocurrency, with a $5.4 billion market cap.
Price Data Courtesy of CoinMarketCap and TradingView