Why Is Stellar Growing in Popularity? - Major Reasons

 Mary Ann Callahan
  Aug 27, 2018

Stellar Lumen has established itself among the fastest growing cryptocurrencies. This is quite surprising considering that during its tentative years, this cryptocurrency didn’t receive as much attention as its competitors. In recent months, the price of Stellar Lumens has skyrocketed to the extent that it is currently considered one of the most productive cryptocurrency investments.

This cryptocurrency is based on the Ripple protocol. Since it is relatively new, only 20% of Stellar Lumens have been issued. This is great news to investors since it is an indication that the price of this cryptocurrency can rise in coming years. Stellar Lumen uses the XLM exchange code, which has a rate of around $0.22 (as of 16 July). This proves how affordable it is to investors.

Despite a notably slow start to life in the cryptocurrency market, XLM has gained considerable traction. This is attested to by the fact that in 2017 its value grew from $0.002 to $0.50.

Reasons Behind Stellar Lumens’ Growing Popularity

The burgeoning popularity of Stellar Lumens could be attributed to a myriad of reasons. Here’s why the cryptocurrency has been growing popular.

  • It is affordable. Unlike other cryptocurrencies, Stellar Lumens operate without any restrictions. Therefore, you can make transactions across international borders at an affordable cost. Transacting this cryptocurrency is affordable to the extent that you might think it is completely free. This is quite remarkable considering that with banks, even the smallest transactions attract significant costs.
  • It is easily accessible. Besides its affordability, Stellar Lumens can now be accessed via special Stellar ATMs without any restrictions. For instance, you can feed U.S. dollars into these ATMs to purchase the cryptocurrency.
  • It allows for fast transactions. Needless to say, cryptocurrency changed the way we do business due to the little time that transactions take. The speed at which you can complete a Stellar Lumens transaction is among factors that endeared investors to this cryptocurrency. You can clear transactions within five seconds, which makes Stellar Lumens one of the most convenient cryptocurrencies in the market.
  • Availability on Leading Exchanges. The reputation of a cryptocurrency is determined by its availability on major exchanges. Despite its relatively new status in the market, Stellar Lumen has already gained the attention of major cryptocurrency exchanges. CEX.IO is among big-name exchanges that have introduced XLM to its platform. This exchange boosts over 2 million users. By allowing Stellar Lumens to operate on its platform, investors can conveniently trade their coins against Euro, U.S. Dollar, and Bitcoin. You can also buy XLM using a credit card, something that has helped to enhance the reputation of Stellar Lumens all the more.
  • Flexibility and scalability. Stellar Lumen is based on a decentralized payment platform just like other cryptocurrencies. Nonetheless, it is more flexible and scalable. In as much as transactions made via this network are irreversible, you can freeze unwanted transactions and funds that are sent mistakenly. This fraud-free environment is appealing to investors and has proven to be among factors that have helped in the growth of the Stellar Lumens market.
  • IBM Agreement. This is perhaps one of the most successful strategic business decisions that Stellar officials made. Their partnership with IBM is what made cross-border transactions a reality besides catapulting Stellar Lumens into becoming one of the most popular cryptocurrencies. What’s more, transactions undertaken over the Stellar Lumens platform are remarkably cheaper than what we were used to. With more banks implementing the Stellar-IBM system, it is expected that more than 60% of cross-border transactions will be undertaken via the system in the South Pacific alone by the end of 2018. The two companies are also looking at harmonizing the system so that it incorporates day to day transactions.

Going into the Future

Judging from its popularity in 2017, Stellar Lumens is in for a productive 2018. What distinguishes this cryptocurrency from the competition is the fact that it incorporates real-world applications, thus making it accessible to both individuals and investors. Its newbie status in the market has helped fan the excitement because the cryptocurrency remains largely unexploited.

Industry experts opine that the growth of Stellar Lumens isn’t miraculous since the cryptocurrency has one of the most investor-friendly platforms. If the cryptocurrency’s upward trajectory is maintained in coming months, it will certainly have a chance to surpass more established cryptocurrencies.

Stellar’s nascent partnership with IBM continues to have a rippling effect on the entire industry, owing to the fact that the cryptocurrency’s reputation has surged. It shouldn’t come as a surprise if we see it adopted and implemented in real-world financial transactions in coming months. When this happens, Stellar Lumens will become easily accessible to everyone.

Conclusion

The most varied speculations can be put forward as to the further growth of Stellar Lumens, but every investor should still keep in mind that it operates within the cryptocurrency market. There is no news that this market is in its fledgling stage and has a long way to travel towards its maturity.

Even if you focus on the incredible growth of Stellar Lumens over the past couple of years, it shouldn’t be the only reason for you to invest in it. Learn more about the coin’s potential and challenges it might face in the future and invest only after you made a thorough research.

Why Is Stellar Growing in Popularity? - Major Reasons

Mary Ann Callahan

As an expert on Bitcoin-related topics, I write and edit dozens of articles for businesses and nonprofits. I'm working on articles related to blockchain security, bitcoin purchase guides or bitcoin regulations in different countries.

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