XLM competes with XRP and ETH for market share while analysts expect a comeback
- Stellar’s first NFT marketplace Litemint is expected to increase on-chain activity in the network’s native cryptocurrency XLM.
- Minting an NFT on Stellar costs nearly $1.5 and takes less than a minute, making it lucrative for creators and new projects.
- Stellar development foundation was chosen by the Monetary Authority of Singapore to develop and showcase Central Bank Digital Currency solutions.
Stellar’s move into NFTs through Livemint is likely to fuel the narrative of a bullish trend reversal.
XLM faces stiff competition from ETH2 and XRP, analysts expect the altcoin to make a comeback
Decentralized protocol Stellar finds its utility as a cross-border payments solution. The blockchain network’s native cryptocurrency XLM therefore competes with global giants such as Ripple’s XRP.
Proponents have criticized the altcoin for lack of exposure to the latest crypto trends.
The Ethereum ecosystem pioneered digital art and collectibles, through one of its oldest projects CryptoPunks, a collection of 10,000 pixelated and unique faces. Since then, NFTs have evolved on several layer 2 scaling solutions and blockchain networks.
Stellar has jumped on the Non-fungible token trend recently, with the launch of Litemint, a digital collectibles and NFT marketplace.
It's truly exciting to see more artists and creators around the world take advantage of Stellar's low fees to participate in the new emerging creative economies! Congratulations @LitemintHQ for providing a platform that's accessible to everyone! https://t.co/Yu0DjECCq6
— Stellar (@StellarOrg) September 5, 2021
Livemint offers relatively low cost minting and takes only a few seconds. The relatively low investment and time involved is likely to incentivize creators to join Litemint, in turn boosting the demand for Stellar Network’s asset XLM.
Stellar development foundation (SDF), a non-profit organization that supports the growth of Stellar, was recently chosen by the Monetary Authority of Singapore (MAS) for building and showcasing Central Bank Digital Currency (CBDC) solutions. This was considered a bullish development for the altcoin.
Interestingly, the Stellar blockchain has featured in top projects based on average daily development activity on Github alongside Cardano, Chainlink and other altcoins. The updates in the Stellar ecosystem are likely to have triggered a bullish outlook among traders and NFT holders.
Pseudonymous cryptocurrency trader and analyst @Pentosh1 has predicted a 30% upward climb in XLM/BTC pair.
$XLM / $BTC (
— Pentoshi Wont DM You (@Pentosh1) September 6, 2021
Double bottom and IHS forming. I think this is good for roughly a 30% move into 10xx sats
Volume has been building as well
USD pair shown as well.
A lot of alts look good like this pic.twitter.com/RB71bLJ1cJ
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
