Stellar (XLM) has been on a roll for the last few weeks, with its price at one point breaking above $0.30. Even now when the market is deep in the red, Stellar is still edging up on market cap rankings, and has now displaced EOS from the top 5 in terms of market capitalization. But Stellar’s rise to the top is not a fluke. This crypto is backed by solid fundamentals that could see it rise even higher in value going into the future.
One key strengths to Stellar (XLM) is its potential to play a huge role in the rise of security tokens. A couple of months ago, DSTOQ became the first decentralized stock exchange to build on the stellar network. Through this exchange, traditional securities can be tokenized, allowing crypto investors to buy into blue-chip stocks. To conceptualize this, think of Amazon, Apple or any of the other top companies being sold in cryptocurrencies.
But it’s not just DSTOQ that is offering a clear path towards security tokens. The StellarX exchange also allows for the tokenization of any assets, while giving the user control over their ownership, with no intermediaries. Security tokenization is huge, and will create global stock markets by allowing investors from all over the world to invest in good global corporations.
So how does all this fit into Stellar (XLM) as an investment? Well, stellar-based decentralized exchanges run on XLM, and all transaction fees are made in XLM. This means that if security tokenization becomes a reality and billions get transacted through such exchanges, Stellar (XLM) will get widespread usage, and this demand will reflect in its value. Basically, Stellar is the fuel that runs the platforms that are about to make tokenized securities a reality. Just to give context on how big this whole thing is for Stellar (XLM), imagine if a company like Apple were to get tokenized. This is a trillion dollar company and the demand it would attract would without a doubt push up the value of Stellar (XLM) by a huge margin.
But Stellar (XLM)’s value goes way beyond security tokenization. Stellar stands a good chance to grow in the cross-border market as well. Through its partnership with IBM, which is currently working with several central banks, Stellar stands a good chance of adoption by banks. It has what it takes to make a mark in the multi-trillion dollar cross-border payments market. It is fast, scalable, and offers some of the lowest fees in crypto.
With a combination of all these factors, Stellar (XLM) stands a good chance of making huge gains in a crypto bull run. Even in this time when altcoins are bleeding, Stellar is performing relatively well at $0.21. This means that anyone who bought before the recent price pump that pushed it to $0.30, is still in the money. That’s incomparable to most altcoins that are now trading lower than 2017 prices before the bull rally.