Stellar (XLM) has been at the center of great news for some time now. The biggest news around Stellar is with regards to the purchase of Chain by Lightyear. Through this deal that is worth over $200 million, the two companies are now coming together to form Interstellar. While this is great news, the big question for most investors prior to the deal was the potential impact on the value of Stellar (XLM). This concern was premised on the fact that if the recipients of the payout made in Lumens were to dump them, there would be a massive drop in the value of Stellar (XLM).
However, these concerns no longer hold water for a couple of reasons. First, the deal was sealed on the 5th of September, and since that time, there hasn’t been any major changes to the price of Stellar (XLM). It has remained relatively stable at between $0.21 and $0.19. If there was a major selloff of hundreds of millions worth of Lumens, its value would have been the hardest hit in the last one week.
Crypto has experienced a major selloff in the past week, and the fact that Stellar (XLM) has been relatively stable in this period is an indicator that no one has been dumping it. Besides, there is really no incentive for Chain investors to dump coins in the market. That’s because dumping would drive down the price and affect the value that they received from the sale. It is also good for them if the value of Stellar (XLM) continues to gain, since it adds to the overall value of Interstellar, the company that the ex-Chain employees now work for.
Now that the deal is sealed and there hasn’t been a dump in the market, Stellar stands to make the most gains when the market rebounds. That’s because it has one of the fastest growing use-cases in the market, specifically in the financial markets. It’s only recently that IBM announced the launch of the blockchain world wire that is powered by Stellar for cross-border payments. This effectively makes Stellar (XLM) a serious competitor for XRP in the cross-border payments market, a market that could significantly drive up its value in the long haul.
All these event point to a scenario where Stellar (XLM) could be poised for a major breakout once the crypto bear run comes to an end. It may not be performing quite well at the moment, but it is definitely one of the better performers in a market that is heavily bearish. This is a sign that it is fundamentally strong, and could outperform the market in the future. A $1 Stellar (XLM) in the near-term is within the realms of possibility.