The market has been trading sideways for some time now. This means that the risk of another huge drop is still there, before a major push to the upside similar to the 2017 rally. This makes altcoins a high risk, until there is a clear upside break in the whole market. Nonetheless, there are certain altcoins that hold lots of potential regardless of the direction that the market goes. One such altcoin is Stellar (XLM). It doesn’t matter whether Stellar (XLM) drops further, the highest possibility is that it will be headed much higher in the long run. It has strong fundamentals that could see it gain in value over time.
One of these fundamentals is its potential to disrupt the banking industry. This will happen mainly through the IBM blockchain world wire. Through the blockchain world wire, banks will be in a position to handle cross-border payments in just a few seconds.
This is a process that currently takes days, and comes at a hefty fee. It doesn’t take rocket science to see that this is the future of banking. Besides, even though there are other blockchains targeting this market, Stellar stands out. It stands out in the sense that it is a fully decentralized network, which means that banks don’t have regulatory hurdles in implementing it.
Besides, stellar is a partner to IBM, which is the tech company powering over 97% of the global banking industry. This means that stellar has a leg up in terms of adoption. Already there is speculation that 40 – 50 major banks are about to adopt the blockchain world wire. This once confirmed will propel Stellar (XLM) to new heights. On this basis alone, there is no way that Stellar could lose value on the long run. It may fluctuate in the short term, just like the rest of the market, but its overall trajectory is upwards.
On top of that, Stellar is right in the middle of what could be the next revolution of the stock markets. That’s because, it is in the middle of the STO revolution. Security tokens are on the rise all across the world, and exchanges focused on security tokens are on the rise. As this trend gains momentum, stellar could see its value rise significantly. So far, a number of stellar based projects have hit the market. Stellar stands to make it big in this market due to its regulatory compliance. Once STOs become the norm in raising financing, the value of stellar stands to rise significantly going into the future. This pretty much anchors its value irrespective of how it plays out in the short-term.
In essence, for an investor thinking long-term about blockchain, stellar (XLM) is one of the cryptos to hold. The fundamentals are so strong that any chances of going wrong are minimal. Long-term stellar (XLM) could easily push way past $1, in the next Bull Run.