Stellar is one of the best blockchain-based projects listed on Coinmarketcap, and there are good reasons for it to be in the top 10 largest cryptocurrencies out there. However, even in this situation, it’s really a bad idea to go all in with Stellar, and it’s not because of Stellar – it’s absolutely wrong to bet everything you have on a single coin. The very first and basic advice that an investor would get is to never put his eggs in a single basket, no matter how attractive an investment product would appear to be.
As of today, July 16, Stellar is neglecting the general sideways trend of the crypto market and started a bullish rally. You can see its price compared to Bitcoin (blue) (given that all the major cryptocurrencies generally tend to follow Bitcoin):
Late on Friday, it jumped by over 10 percent in a few hours on the news that Coinbase was planning to add it on its exchange platform. Even though Coinbase has lots of negative reviews, it is still an important player of the crypto market, so the announcement had a significant impact on XLM’s (Stellar’s cryptocurrency) price.
Coinbase said in a blog post that it intended to add five more coins – Stellar’s XLM, Cardano, Basic Attention Token, Zcash, and Ox. Thus, its list of coins might increase from four (Bitcoin, Bitcoin Cash, Ethereum, and Litecoin) to nine. All of the five coins have demonstrated strong upward trends, with some of them adding over 20% in only a few hours.
Note that Coinbase didn’t say that it guaranteed the mentioned five coins would become available. If Stellar is indeed listed there in the upcoming months, you can be sure another rally will follow, so you should be ready for that if you’re a Stellar fan. Also, if XLM gets listed on Coinbase, this may be positive news because the US largest exchange is regulated with Securities and Exchange Commission (SEC) – atop regulator there. In other words, Stellar will somehow be accepted to a very high degree, legally speaking.
On May 1 of this year, Stellar’s Lumens was added on Bitfinex, so we may say this token has already gone mainstream.
Stellar started as a payment solution that leverages blockchain, but it will use the technology beyond its primary use case. The project became popular after tech giant IBM, one of the most active blockchain adopters, announced that it had partnered with the team behind Stellar to use its technology for a payments system in the South Pacific region. Also, IBM recently partnered with Veridium Labs to create a new token to be backed by carbon credits, and this token will be traded on Stellar.
If you’re confused about how some token can be traded on Stellar, you should know that the team is preparing a decentralized token exchange called Stellar Decentralized Exchange (SDEX), which is expected to go live this year – another big event you should follow.
Stellar is an active project that has a bright future, at least judging by its partnerships with big players. However, as mentioned – you should never bet on a single cryptocurrency, be it Bitcoin or any other of them.