Stellar (XLM), currently the number 6 cryptocurrency by market capitalization has been on the headlines recently. First, it is one of the few cryptocurrencies in green at the time of writing this article. Secondly, Blockchain is to do an airdrop with the asset starting from today 9 November 2018.
XLM might be one of the crypto assets that are not very big now but it has a bright future as an investment. We will explore some reasons why this is so by looking at certain strengths it possess that are capable of making it reliable.
Reasons why XLM will be a good long term investment
- It has a good technology model
According to the most recent Weiss Ratings, XLM ranks among the top four cryptocurrencies that are suitable for long term investment. The agency reviews and rates cryptocurrencies based on certain metrics, and XLM was prominent under one of the most important metrics, technology model.
For starters, this means the cryptocurrency’s blockchain has a high ability for performance. It also means the transaction processing speed is great and very scalable. This also implies that smart contracts can be very easily integrated on the blockchain and it can be easily upgraded.
If these attributes don’t make for a crypto asset with good investment potentials then i don’t know what does. Transaction speed for instance is something the lead currency, Bitcoin is struggling with.
No merchant wants to transfer funds and wait for hours to confirm that such funds have been successfully sent. This is only one example of what XLM is good for that makes it good to consider investing in.
- Stellar facilitates cross-border payments
Apart from the qualities listed above, the company Stellar is exploring its high transaction speed to solve a real problem by providing cross-border payment services. It is no wonder therefore that Weiss Ratings placed it in the same class only with XRP which itself is a leader in cross-border payments.
It is needless to say that with the level of adoption XRP is getting because of the services it renders, XLM has the potential to enjoy similar adoption in the future as the need for such payment solutions is on the rise and not likely to slow down soon.
This is another reason why XLM holds great potentials and should be explored as an investment in the long term because this adoption has the tendency to raise the price of the asset and only those who invest now can enjoy such rise in the future.
- Stellar is going on the lighting network by December 2018
Another important reason why Stellar holds a bright future is its scheduled Lightning Network launch scheduled for December 2018.
This is expected to give the asset a boost because the lightning network provides an easy and fast means of making payments off the blockchain and most cryptocurrency users have migrated to the network lately.
This is evident by the decision of major Bitcoin wallets like Electrum to integrate the lightning network in its because its transaction volume had reduced by more than 50% since lightning network came into being.
Stellar integrating the lightning network therefore will boost adoption of XLM and hence cause the price to soar. It is therefore a good investment for the future.
From the above information, it is clear that Stellar has a robust framework that is poised to solve problems that many cryptocurrency users and investors are facing. It also shows that although XLM is not big at the moment, it could become a really useful crypto asset by solving the problems and may be adopted by many users which will make it a profitable investment. Are you looking for a good investment option? You should try XLM!