Since it recently managed to surpass EOS by market cap, now sitting on the fifth spot in the top major cryptocurrencies, Stellar continues to draw increasingly higher attention. Let’s examine some critical aspects which could make Stellar the cryptocurrency of the year.
What exactly is Stellar?
Stellar.org, the organization currently supporting the cryptocurrency, is an open-source, distributed, and community-owned network that aims to facilitate cross-asset transfers of value. Although it can’t support any type of software like Ethereum, Stellar represents one of the options for Initial Coin Offerings.
The resemblance with Ripple is much more accurate. Stellar can also support exchanges between fiat currencies and between cryptocurrencies. Fast transaction speed, very low fees (0.00001 per transaction), and a centralized network operated by a non-profit organization make Stellar is a good alternative to Ripple and potentially could become the cryptocurrency which will revolutionize the cross-border payments system, which at the present time is very slow.
Price action is supportive
Although in the fourth quarter of the year, the price of cryptocurrencies tends to go on the upside (for the past four out of the five years, the Bitcoin price surged in Q4) most of the major cryptocurrencies did not manage to have impressive performances, even though we are now in November. Since Bitcoin trading continues to be subdued and the price performance does not look impressive, it is the right time for an outsider to kick in and gain significant traction. The seasonality applies to Stellar as well, which had appreciated in value by roughly 50% since September 11th. Looking at the chart below, we see three consecutive higher highs which communicate bulls have been stepping in on the dips.
According to the coinmarketcap.com rankings, Stellar has a $5.13 in market cap at the time of writing, with $200 million more than EOS, and $4 billion less than Bitcoin Cash. Still, if we analyze all the cryptocurrencies from top 10, Stellar is the only cryptocurrency that banked a 50% gain in the last two months. Time is running out quickly and Stellar is on track to mark the best recovery of late 2018, as compared to the other major cryptocurrencies. It truly has the potential to compete with Ripple and any significant partnership with financial companies could further boost the Stellar price. Current performance is not an indication of future results but right now we have a majority of the market participants buying Stellar, which is price supportive.