To most people Stellar (XLM) is XRP’s competitor, and rightly so. The two are in a neck-to-neck race to take over the cross-border payments method. The two cryptos are gaining in adoption by financial institutions, an indicator that both stand an equal chance of adoption in this market. But Stellar is more than just a cross-border payments platform. It could also take on Ethereum (ETH) and other Dapps platforms in launching ICOs. And the reason why it could win is the stability it offers through Stellar-based stable coins.
In the last few weeks, the value of Ethereum has plummeted is because most ICOs have been cashing out their Ethereum (ETH). They have been doing this because of the downward pressure on Ethereum and other cryptos for the last 8 months. Stellar is well positioned to avoid this problem, and allow ICOs maintain the value of capital, for the development of their projects. That’s because the stellar network has some good stable coins that can help ICOs hold their value, and work on their project goals even in a down market.
From this perspective, Stellar (XLM) as an ICO platform could actually be the best. By giving ICOs the capacity to hold value in stable coins, the selloffs experienced in the last few months would decline, and the perception that has developed of ICOs as scams would come to end. That’s not to say that most ICOs are not scams. However, many of them are genuine projects that have for the past 3 quarters been significantly affected by the volatility in the markets. In essence, the stability of the stellar network could see the emergence of strong Dapps that can change the world. This aspect to Stellar (XLM) makes it a worthy competitor to Ethereum, and could see its value push up significantly going into the future.
This aspect to Stellar (XLM) combines quite well with the other use cases of the stellar network, such as its use case in cross-border payments, and in security tokenization. Both of these use-cases are a big deal unto themselves, and will play a massive role to the future growth of stellar (XLM) as well. For instance, the cross-border payments market is estimated to be worth upwards of $20 trillion. Through its partnership with IBM, a company that has majority control over most of the world’s banking system, Stellar could gain a sizeable share of this market. This will be a strong anchor to its value growth going in the long run.
But, the biggest use case for Stellar (XLM) outside of the ICO space and cross-border payments is security tokenization. This aspect to Stellar (XLM) could see it disrupt the stock markets as we know them and unlock unprecedented value in this market. This aspect to Stellar (XLM), when combined with its other use cases could see its value explode in a bull market. On the basis of these use cases, Stellar is without a doubt one of the most fundamentally strong cryptos in the market today.
It’s not a fluke that Stellar (XLM) has held its value even as the rest of the market unravels. In the last few hours, the market has dropped by a big margin, after bitcoin failed to break above the $6500 resistance level. Interestingly, Stellar (XLM) has held strong above $0.20, a level it has held for some time now. For the past month, Stellar (XLM) has narrowed the gap with XRP (XRP) to just a few cents, something that was unimaginable a few months back. The intrinsic value of Stellar (XLM) is strong and will only grow, as the network begins to emerge in its different markets.