Stellar Lumens (XLM) is trading at $0.693. That’s about a 9 percent drop from its price 24 hours ago. But, from our perspective, this short retreat in XLM’s growth is a very temporary situation. In fact, this price correction – after a stunning few weeks of growth – may be opening up a buying opportunity. Now may be the time to buy in at a discount before Stellar takes off again.
After all, this cryptocurrency is being compared to Ether (ETH). The blockchain technology behind Stellar (XLM) is actually considerably better than Ethereum in a few ways.
But most of all – this coin is following the growth trend that Ripple (XRP) experienced (first chart below.) Now look at how Stellar Lumens have shot up in value at nearly the same rate (second chart)
XLM has gained a whopping 434% over the last 30 days – peaking, then pulling back. It seems to be experiencing its first big pullback. When the same thing happened to Ripple (XRP), it briefly retreating before skyrocketing once again.
Why is Stellar (XLM) So Popular – Are Stellar Lumens Really the New Ethereum?
This cryptocurrency has a strong background. It was created by Jde McCaleb – who actually helped found what is now Ripple. This coin uses the same open source code as XRP, but the protocols differ in some important ways.
Stellar also has backing by payments giant Stripe, and the founder of WordPress is an investor too.
This blockchain technology is sometimes referred to as the “New Ethereum” or the “Next Ethereum.” The team behind the coin prefers to think of themselves as the “Stripe for Blockchain.” Like Ethereum, it can support ICOs – and new cryptocurrencies can launch on top of the Stellar Network.
The first ICO to launch was Mobius:
We're very excited to be the first major ICO built and announced on @StellarOrg! If you haven't noticed, Stellar grew by over 20,000% in 2017. Also, in 2018, you'll see why Stellar over Ethereum is a no-brainer. Here's why… #XLM #MOBIhttps://t.co/nPJcEJV2fl
— Mobius (@mobius_network) January 2, 2018
Another reason we believe XLM will experience further price growth is its comparison to Ripple – which is both faster and cheaper than Bitcoin (BTC). With Stellar offering a faster alternative to Ethereum, we see little reason for this newer blockchain technology to stay in 8th place. Ethereum has already been pushed down to 3rd.
We are keeping our eyes on XLM – waiting for its price to rebound.
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.