The market is still in bear territory, and from a quick look at the short-term charts, there is a high probability that stellar could underperform in the near-term, and probably drop to $0.21. But what are the long-term prospects? How is it likely to perform going into 2019? Well, going by its fundamentals and a host of factors in the external environment, Stellar could be headed for a good time going in 2019.
Starting with the external factors, the biggest external factor that will trigger a stellar bull run in 2019 is bitcoin (BTC). While many may wish otherwise, the fact is that, at this point, bitcoin is pretty much the determinant of market direction in crypto. If it moons, the altcoins market will moon too. As such, it makes sense to focus on Bitcoin’s chances of growth, when trying to determine the success of any altcoin. Going into 2019, Bitcoin’s prospects look good. Wall Street institutions have taken an interest in bitcoin (BTC) and many of them are laying the groundwork to invest in it. The Bakkt physically settled futures market is also coming soon. These factors could see bitcoin rally in 2019, and if it rallies, it will pull the altcoins market up as well. This means that Steller’s performance in 2019 will be good as well.
Outside of this, Stellar’s fundamentals are quite strong and are getting better with time. One of its core strengths is in asset tokenization. The concept of asset tokenization is gaining traction and stellar is emerging as a dominant player in it. For instance, Smartlands, a stellar-based platform has been making big moves on this front. At the moment, they have a voting system for projects that will be tokenized. So far they have tokenized a number of companies, including a major Canadian real estate company. As the number of security tokens on stellar increases, the value of the stellar network will grow too. STOs are the future for companies looking to raise capital and stellar (XLM) is leading the way.
On top of that, stellar is making significant in-roads in the banking industry, through its partnership with IBM. This partnership not only places stellar in a good position in banking but in the broader financial services industry as well. For instance, Visa, a major global financial services firm is working with IBM, which is a plus for stellar. Chances of stellar taking the lead in the cross-border payments market thanks to this partnership are relatively higher than the rest.
All the above have played a significant part in the increased intrinsic value of stellar (XLM) in 2018. Therefore, if bitcoin were to break above $12, 000, which is a key level to the return of bullish sentiment, Stellar (XLM) would be in a very good position for long-term growth going into 2019 and beyond. Compared to 2017 when it didn’t have the fundamentals that it has now, Stellar could be worth upwards of $5 in the next Bull Run. It makes sense to have it in a crypto portfolio, in preparation to a resurgence of crypto as a top performing asset class.