The year 2018 has not been good for crypto, at least not in terms of price. While prices seem to have stabilized for some months, the last 24-hours have unleashed hell unlike seen before in 2018. Bitcoin has for the first time in a long-time breached the $5800 support level and seems to be headed lower. Like always, it has dragged the altcoins market with it. But there is one coin that has held strong all through this bear run, and that’s Stellar (XLM).
In today’s dump, Stellar is still above $0.22, and in the weekly chart, the uptrend remains intact. In fact, anyone invested in Stellar since June is still in the money. All that Stellar has lost in today’s crash is a few percentage points coming from the recent pump that pushed it to $0.30. Otherwise, Stellar is in safe territory. So what makes an inflationary coin better than bitcoin (BTC), and all other coins out there in terms of holding value?
One thing that makes Stellar valuable is its versatile use case. It has use cases that span from cross-border payments, asset tokenization, and most importantly, stellar is a decentralized exchange. In all these markets stellar does have a competitive edge.
In the cross-border payments market, many presume that stellar is an underdog when compared to ripple. However, in reality, Stellar (XLM) has an edge. It has an edge because it has a partnership with a company that has existing relationships with the banking industry. IBM has decades-old relationships with banks and this is of value to the stellar network in terms of gaining adoption. But this is not the biggest source of leverage for stellar in banking. A new dynamic has come up that could flip the cross-border payments market upside down.
Yesterday, Christine Lagarde, head of the IMF, made a speech urging central banks to issue digital currencies. Considering the level of influence that the IMF has on monetary policy all across the world, there is a good chance that central banks will go this route. If this happens at scale, then cross-border settlements will be dominated by central bank issued currencies.
Any blockchain in this market that doesn’t factor in this issue, could be washed out of the market. Stellar and IBM seem to have factored in this long ago, which is why the stellar based IBM blockchain world wire allows for settlements in any currency, including central bank issued digital currencies. This means that in the future, even if state-backed digital currencies become a reality, stellar will still have a place in the market.
Stellar (XLM) also has an edge in the asset tokenization market, a market that is fast becoming a reality as the future for securities issuance. Most of the security tokens issued so far are stellar-based. That’s a sign that stellar has a head start in this market, and could dominate it in the future.
These fundamentals have come together to make stellar (XLM) one of the best cryptos to hold all through the 2018 bear run.