While it is difficult to determine which cryptos are likely to emerge winners, there are aspects to the market that give hints on where the market could be going. For instance, Binance coin has pumped significantly this quarter, and anyone keen on what drives its price would have anticipated the pump. That’s because, it now has an ICO launch pad and to participate in it, one has to first buy BNB. This creates a system that guarantees its price action. Let’s apply the same logic to Stellar (XLM) and XRP (XRP) and try and determine which one is likely to emerge the biggest gainer in the remaining weeks of this march.
The most important parameter that could help determine the direction of the two in the short-term is positive news. That’s because, under current market conditions when the market is just quiet and moving sideways, news can play a major role in driving price action. On this front, Stellar (XLM) seems to be a likely winner. Here’s why.
In the past week, XLM has pumped on the strength of news that over 40 banks could be using the IBM blockchain world wire in coming years. Investors expect more information on this during the Money2020 conference in Singapore on the 19th of March. As such, there could be a significant interest in Stellar in coming weeks, something that could play a role in its price action.
Such news could be boosted by the fact that, Stellar (XLM) is now trading on Coinbase pro. While Coinbase is no longer the price mover that it once was, this announcement could play into the price dynamics of this crypto in the next few weeks. That’s because, it comes at a time when Stellar has significant good news around it, in terms of adoption.
As for XRP (XRP), there isn’t any major announcements anticipated in the next few weeks that could drastically change its trajectory. So far, news of adoption haven’t played much into its price action, so for news to move it, it would have to be something bigger than those related to adoption in the banking industry. In essence, Stellar has a better chance of giving bigger gains in the next couple of weeks.
However, in the long run, both projects have a good chance of giving huge gains to investors. Both of them are disrupting the banking industry, one the most important in the world. The ability to send money anywhere in the world instantly is something that will propel the demand for these two cryptos in the long run.
The cross-border payments market is worth over a trillion dollars, and if these two take a sizeable share of it, their valuations would shoot up, possibly into the double digits. In essence, holding both of them with a view of the next 5 to 10 years makes for a good investment decision. In that period, blockchain technology will have matured, and these two will be big players in banking.