Stellar (XLM) has always been a worthy investment to have in a crypto portfolio, but it is increasingly shaping up to become the lowest risk altcoin in the market. Going by the moves that Stellar has been making in the market, it won’t be surprising if it hits the second or third spot in crypto, with a market cap several times its market cap during the December highs.
One key factor that will play a huge role in the rise of Stellar is its low regulatory risks. Some time back, New York Financial regulators approved the trading of Stellar (XLM) on one of the U.S’s major regulated exchange. This was a clear signal that there are no regulatory ambiguities around Stellar (XLM).
This does matter because it will determine the institutional uptake of Stellar (XLM) both as investors and users of the stellar network. But have these institutions been adopting the stellar network? There is every indication that institutions are warming up to the stellar network. Sometime back, Chain CEO was interviewed by Yahoo finance with regards to Interstellar. One of the questions was with regards to how their customers and other interested parties responded to news of the acquisition of Chain by lightyear. Here is what he had to say about it.
“Lightyear is relevant because it was set up last year to be the commercial arm for the stellar network. As more institutions have been interested in transacting in stellar, the foundation was not positioned to do that kind of work. So we are going all in on Stellar, and we will do that enterprise work, the hand-holding, the service providing.”
From this answer, it is clear that there has been an increase in institutional interest over time. That’s a pretty good assurance to the stellar community that going into the future,, there is going to be an increased institutional uptake of the stellar network, and that’s a major plus to the overall growth of the stellar blockchain.
Still on the issue of institutional uptake, is the aspect of banks adopting it for cross-border payments. Stellar has been making some huge moves in the banking industry. Through it partnership with IBM, Stellar has made some major in-roads in the banking industry. One aspect to stellar that gives it an edge in this market is its KYC and AML functionalities. No bank will ever touch crypto if there is no KYC to it. That’s why stellar has an edge in this market, because it has tools that financial institutions can use in implementing KYC and AML regulations in their jurisdictions. This pretty much assures the stellar network of growth in the future, and the potential to become a top Altcoin in the future.
Lastly, stellar got a huge boost from the launch of the StellarX. Through StellarX developers can create fiat anchors for trading stellar and other cryptos on StellarX. This will increase the number of stellar (XLM) trades made against fiat as opposed to BTC. The result will be a decreased reliance of stellar on bitcoin (BTC). This decoupling could see stellar (XLM) grow in a more stable manner, drawing in more institutional players.
The end result will be the long-term consistent growth of the stellar blockchain relative to the rest of the market. When decoupling combines with the increased institutional uptake of stellar (XLM), there is a good chance that stellar (XLM) could challenge bitcoin (BTC) for the top spot in crypto. Stellar (XLM) chances of success are more elevated as compared to most of other cryptos in the market.