According to CoinGecko, Stellar is trading at $0.40 after making an over 20% gain over the past month. Stellar’s all-time high stands at $0.875, which was recorded in 2018. During the bull market that happened earlier this year, Stellar was unable to reach these levels. However, if it maintains these gains in the current bull market, the coin could be headed towards major highs.
What’s Happening with Stellar’s Price?
Stellar is an open-source protocol that also functions like a distributed intermediary blockchain. Its network can be used to facilitate global financial systems. The XLM coins power this protocol and enables transaction settlement on the network.
One of the major rivals of Stellar in the crypto space is Ripple. Ripple is also a blockchain that facilitates transaction processing. The two blockchains are the most dominant ones in the global payments sector, and they have made strategic partnerships in the financial systems to boost their utility.
This month, XLM has been on a major rally because of the strategic collaborations that the network has made. The network partnered with MoneyGram, a leading traditional payments service firm, at the beginning of the year. The partnership sent XLM on a massive price rally, where new gains were created.
The purpose of MoneyGram’s partnership with Stellar is to enable users to convert their digital assets into fiat currencies easily. Few platforms facilitate this, and with growing crypto adoption, such services are becoming even more necessary than ever. Hence, Stellar could head towards a major bull market following such developments.
The Stellar Foundation has also been actively involved in supporting firms in the crypto sector. The foundation has been involved in funding rounds aimed at helping start-up fintech firms looking to boost their crypto capabilities. Stellar’s involvement in funding rounds is a strategic move because it makes it part of the major developments happening across the crypto space.
The Stellar network’s capabilities in facilitating crypto payments give it an edge over other networks because this is an area that users are always exploring. Besides, with crypto adoption becoming mainstream and people looking for ways to use their crypto holdings in the real world, Stellar could continue making major partnerships that will further fuel XLM gains.
Should You Buy Stellar?
If you are considering buying Stellar during the current bull rally, you need to consider several factors. The first is the historic performance of this coin over the past few months. The current gains made by Stellar are similar to gains made at the beginning of September.
In early September, XLM recorded a monthly high of $0.42 before a slight price correction happened. These price levels are similar to what Stellar is trading at currently; hence, there could be another correction before bulls pick up again.
With the broader market bulls, there is also the chance that Stellar could target its May highs of $0.72. If XLM can reach this level, it could pave the way for another bullish rally beyond $0.80 and towards new all-time highs. On the other hand, if these bullish gains fail, XLM could dip towards previous lows.
On the other hand, Stellar’s partnerships could increase the utility for XLM coins; hence, we could see the coin picking up again in the future. Moreover, with traditional payment firms looking for a way to bridge digital currencies and fiat currencies, Stellar is poised to pick up again and make more gains.
Some analysts have also linked Stellar to the case with Ripple and the Securities and Exchange Commission (SEC). These analysts state that if the case ends and XRP is deemed a security, it could also create problems for XLM. This is because the two firms deal in a similar field, and their operations are similar. Hence, this Ripple vs SEC lawsuit is definitely something that XLM holders should watch out for.
. This is because the two firms deal in a similar field, and their operations are similar. Hence, this Ripple vs SEC lawsuit is definitely something that XLM holders should watch out for.
Stellar is among the most reputable coins in the market and currently ranks as the 22nd largest cryptocurrency with a market capitalization of over $9 billion. It makes for a good investment because, unlike many cryptocurrencies, it has a real use case, which is facilitating payment services. Stellar is hence an ideal choice for those who invest in cryptocurrencies because of the underlying technologies.