Stellar (XLM) is without a doubt one of the best crypto performers so far. This is largely driven by the increased number of announcements, all related to the adoption of the stellar blockchain in the banking sector. Through its partnership with IBM, Stellar is now a worthy competitor to ripple in the cross-border payments market. However, the million dollar question remains, is there a use for the Stellar (XLM) coin? Will the stellar (XLM) coin benefit in the long-run from the adoption of the stellar blockchain? These questions bug many people, not just XLM investors, but those of XRP and many other cryptos as well.
For purposes of this discussion, let’s focus more on Stellar. Stellar.org on their FAQs page touch on this issue. According to them, the stellar coin is needed for the security of the network. The stellar network prevents malicious transactions by charging a fee of 0.00001 lumens. On top of that, all accounts are required to hold at least 0.5 lumens, with the aim of preventing the abandonment of accounts. This makes the stellar lumen coin quite useful to the network especially if it gains adoption in the cross-border payments market. That’s because, if the stellar blockchain gains a significant share of the multi-trillion dollar cross-border payments market, then large amounts of Stellar (XLM) coins will be generated in fees every minute.
This will drive up demand, and consequently, push up the value of this coin as it continues to gain in adoption. Besides, since the transaction fees generated are distributed to stellar holders, there is a huge incentive for investors to hold this coin, as more institutions continue to adopt the stellar blockchain.
Secondly, according to stellar.org, the stellar coin can be used as a bridge currency between currency pairs where a direct market is not big enough. This is probably one of the biggest uses of the stellar coin, as the stellar blockchain continues to gain in adoption. That’s because there are lots of currencies out there, especially those from poor countries, which are not liquid enough to allow for efficient transactions in the international markets. In such a case, Stellar (XLM) acts as a bridge currency.
In the future, stellar lumens will be in a position to achieve this role with pretty much any currency or asset. That’s because, through StellarX, any asset is transferable for any other using XLM. StellarX is looking to add multiple currency pairs, not just the major global currencies. This means that in the long-run, Stellar (XLM) will be a viable bridge currency for pretty much every currency in the world. That’s a big deal especially now that the stellar blockchain is gaining in adoption, in the cross-border payments market. It will revolutionize forex as we know it today.
From the above, it is clear that the stellar (XLM) coin is needed in the stellar ecosystem. In essence, on the basis of the stellar blockchain’s wide adoption in the banking sector, holding stellar (XLM) coin is definitely a worthwhile investment. It is one coin that stands to outperform the market on the basis of adoption. At its current growth rate, $1 stellar (XLM) in Q4 of 2018 or in Q1 of 2019 is a realistic possibility. It has a great future ahead, especially as more investors begin to appreciate its value in the stellar blockchain ecosystem.