Demand for the Stellar Lumens (XLM) could explode because the new Coinbase Visa debit card will pay 4% in XLM crypto rewards on purchases.
I think the Coinbase Card will be popular because people can use it to convert cryptocurrency held in a Coinbase account into US Dollars. Moreover, you can make Apple Pay, Google Pay, and point-of-sale (POS) brick and mortar purchases with the Coinbase Card. Coinbase Card users can also use it get cash from an Automatic Teller Machine (ATM).
The Coinbase Card could increase use demand for Stellar Lumens because Coinbase claims it has over 56 million verified users in over 100 countries. Moreover, Coinbase claims users traded $335 billion on its platform in the second quarter of 2021. In additionally, Coinbase claims to have $223 billion in assets on its platforms.
So What is Stellar Lumens?
The Stellar Lumens or Stellar (XLM) is a cryptocurrency designed to function as a token on the Stellar platform.
Stellar calls itself “an open network for storing and moving money.” However, I consider Stellar a Fintech company. The network allows users to trade and exchange currency backed tokens. The network is one of several products Stellar operates.
The Stellar products include built-in decentralized exchange for crypto, forex currency trading, and securities. Other Stellar solutions include Application Programming Interfaces (APIs) and Software Development Kits (SDKs) that enable Fintech companies to connect their products to the Stellar Network.
One of the most fascinating Stellar products is Kelp a free customizable open-source trading bot for the Stellar Universal market place. Stellar claims Kelp can create liquidity, set spot prices, make spreads, make markets, price and trade stable coins, and mimic orders from other exchanges.
Users can build Global Payment Apps and micro-payment services powered by the Stellar Network. These products large companies such as Circle, Bitbond, ClickPesa, SatoshiPay, and SETTLE to use the Stellar Network.
The Stellar Ecosystem
The Stellar Ecosystem includes such products as the Stellar USDC, a US Dollar stablecoin.
There’s also Stellar Quest a mobile app that rewards users for playing through some modular tasks. When Stellar Quest users complete a task, the app rewards them with XLM.
The Stellar Ecosystem is an open financial structure that is used by some large companies, including IBM (IBM) and Franklin Templeton. Other Stellar users include Saldo, which offers remittances.
Some of the most interesting Stellar users include Stablex which issues the ARST an Argentine peso-backed stablecoin. There’s Wyre a single-payment and savings API, Plus the LOBSTR mobile and web wallet with DEX (decentralized exchange).
Some of the most interesting Stellar users include Stablex which issues the ARST an Argentine peso-backed stablecoin. There’s Wyre a single-payment and savings API, Plus the LOBSTR mobile and web wallet with DEX (decentralized exchange).
Circle’s current products include scaling solutions for nonfungible tokens (NFTs). Circle even offers high yield digital dollar business accounts. Notably, Circle is partnering with Visa (V) the world’s biggest payments companies.
Are the Stellar Lumens a good Cryptocurrency?
The Stellar Lumens (XLM) function as the native token for Stellar. Stellar estimates there are 20 billion Lumens in the open market and another 30 billion held by the Stellar Development Foundation.
They sell the Lumens through Coinbase, Kraken, and Lobstr, a native Stellar exchange. On 21 June 2021, CoinMarketCap gave XLM a Coin Price of 25.86₵, a Market Capitalization of $5.961 billion, a Fully Diluted Market Cap of $12.51 billion , and a 24-Hour Market Volume of $650.972 million. They based those numbers on a Circulating Supply of 23.17 billion XLM and a Total Supply of 50.002 billion.
Similarly, Coinbase gave Stellar Lumens a 26₵ Coin Price, a $6 billion Market Cap and a $651.8 million 24-Hour Market Volume on the same day. They based those numbers on a circulating supply of 23.2 billion XLM.
There could be an Enormous Market for Stellar Lumens (XLM)
I think Stellar Lumens has value because Fintech designers give it value. For example, Coinbase claims you can earn XLM by watching tutorials. In addition, you can earn Lumens with the Coinbase Card.
Thus, Stellar’s designers are not waiting for the public to adopt Stellar Lumens because it is a good cryptocurrency. Instead, Stellar is giving people a reason to use its token. Thus, Stellar is trying to build the market instead of waiting for the market to find it.
Consequently, I think Stellar Lumens (XLM) could be a good speculative cryptocurrency because there could be an enormous market for it. The market could be enormous because they dedicate Stellar to building a giant market.
In the final analysis, I think Stellar Lumens could a good speculative investment because Stellar is a smart Fintech company that is building solutions actual people could use. All cryptocurrency speculators need to investigate Stellar because it is building an infrastructure for the mass adoption of altcoins.
Originally published at https://marketmadhouse.com on June 21, 2021.
