Stellar Lumens (XLM) consistently prove their staying power, despite the current bear market. Despite a recent loss in value of 10%, they continue to maintain the number five spot in market cap. The coin seized the spot from EOS (EOS) back in October and have steadfastly remained – even as their spiritual sister currency Ripple (XRP) dueled with Ethereum (ETH) for number two. In part, this value gain is caused by a measured, methodical approach to development that has left them free from over-promising.
Further, their recent projects include a fiat gateway for XLM. Fiat gateways are a powerful tool for boosting the value of cryptocurrency, as their relative rarity is one of the larger stumbling blocks for
Stellar Lumens and Ripple
The similarities between XLM and XRP do not end with their coinciding success – both are designed as financial instruments to ease the flow of currency. Ripple does so through financial institutions – banks, investments funds, etc. Stellar’s focus is instead on the remittance industry, providing liquidity for the average person. Their governance structure sets them apart, with Ripple firmly corporate and Stellar founded as a non-profit.
Their goals certainly overlap, but there may very well be space for both in the greater cryptocurrency market. While many of the top cryptocurrencies tout themselves as a usable digital currency, XLM and XRP are two of the most successful at accomplishing this task. XRP is readily used within the Ripple Labs product suite and XLM’s close partnership with IBM produced several promising projects.
The Novatti AUD Stablecoin
The race to establish a new stablecoin is the hottest competition in the cryptocurrency market. Gemini, Coinbase and a slew of others are all seeking to dethrone Tether (USDT) as the de facto safe storage method. However, nearly all these stablecoins are pegged to the US Dollar, creating a fierce fight for the top spot. Stellar’s recent partnership with Novatti sidesteps this issue by creating a stablecoin that is instead pegged to the Australian dollar.
Alongside possessing a relatively powerful currency on the global stage, Australia also possesses a markedly different view towards cryptocurrency than the United States. By virtue of how laws are created, the US approach to cryptocurrency regulation is schizophrenic at best. Australia is much friendlier to cryptocurrency businesses. While not confirmed, Stellar may be looking to establish a network of stablecoins for various currencies – all on the Stellar network, of course.
Article By: Adam Stone