The new year is off to a great start – at least for Stellar (XLM). On Friday, it was already the tenth most valuable crypto-coin on the market. Since then, its price has surged to $0.738. That’s about triple its value at the end of last week. Now, it is sitting comfortably in seventh place.
In the past week, this digital currency has gained a stunning 234%. Looking back 30 days, it has grown 720% more valuable! XLM is starting to look a lot like the next Ripple (XRP).
At its current price, this crypto-coin is worth about $13.2 billion. Litecoin (LTC), which is in sixth place, is worth $13.6 billion at the time of writing.
What is this cryptocurrency all about – and why has it risen so much in value over the last week?
What kind of cryptocurrency is Stellar (XLM) Anyway?
This cryptocurrency is technically referred to as “Stellar Lumens” – and it was built using Bitcoin technology. But this coin is very different from Bitcoin (BTC) in a few important ways.
For one thing, its transactions settle in under five seconds. If you have ever completed a Bitcoin transaction, that speed is like lightening in comparison. This coin, also unlike Bitcoin, facilitates transfers between fiat currencies and other digital assets.
Apart from now being in the top-10 most valuable list, this coin has gone mainstream in other ways. IBM, for example, is using its technology to work on international transaction systems. Deloitte has also teamed up with Stellar.
Bitcoin is losing market share to up-and-coming altcoins like XLM. With other coins like Ripple (XRP) and Cardano (ADA) gaining more prominence, will Stellar (or one of its peers) be able to take the number one spot?
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.