The need for an efficient, low-cost solution to facilitate international money transfers has been well documented. Many believe crypto will be the answer to this problem and few projects are positioned as well as Stellar (XLM) to dominate in the space. Transactions on the Stellar network cost a fraction of a cent and settle in around 5 seconds, making it hundreds of times more efficient than 3rd party solutions like Western Union. Over the past few days, mentions of this trending cryptocurrency are up almost 45%, signaling buyer sentiment could be turning bullish. Currently, the cost of one XLM is $0.2076, down 39.69% from highs of $0.29 at the start of the year.
Stellar recently announced a $30 million fund dedicated to rewarding startups for creating projects on the network.
Stellar is taking an open approach to international transfers by ensuring they don’t show preference to a particular currency. This was a great choice by the team as it should help to speed up its global adoption rate.
Now that the network is growing and the benefits of XLM are becoming clear, we’re beginning to see a number of high-profile partnerships with Stellar. In 2018, IBM partnered with Stellar to launch a blockchain-based global payment network. More recently, Stellar announced a partnership with MoneyGram, one of the world’s largest international money transfer companies.
The value of XLM is growing quickly, climbing by an impressive 108% in 2021 alone.
The usage statistics on the Stellar network are equally impressive. The total number of accounts grew from 4.8 million to 6.5 million, the total number of payments climbed from 15.2 million to 72.6 million, and the average daily volume on Stellar’s decentralized exchange grew by an eye-watering 962%, increasing from 11.9 million to 126.2 million.
Despite XLM’s value increasing by more than 100% over 2021, it’s currently down by around 30% year to date.
As stated on their website, Stellar was only ever intended to enhance the existing financial system rather than replace it. While this isn’t inherently negative, many Stellar investors seem to overlook this fact, instead, believing it’ll become the new de facto international payment system.
Hype Asset of the day - Conclusion
With a clear use case, plenty of corporate interest, and a 42% increase in mentions, XLM seems poised to have a solid year once prices begin rising again. Its 2021 partnership with MoneyGram could bring even more transactions to the network and cement its place as a serious contender in the international payments sector. Therefore, it could be the perfect time to add to your XLM position while prices are still low as a result of inflation and war. If you’d like to get more hyped assets straight to your inbox you can check out our premium plans or learn more about our services by heading over to our FAQ page.
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