Stellar (XLM) Makes Dramatic Move, Talks of “Flippening” with XRP Resume
XLM was one of the fastest overnight gainers in the recent market recovery, displacing Litecoin (LTC) from its position in the top 10 of CoinMarketCap.
XLM remained flat for a long time, hovering at or below 20 cents. But in the past day, the price rallied, adding more than 52% net on a weekly basis, and 23% just in the past 24 hours. XLM reached $0.28 at 10:00 UTC. The latest rally sees XLM nearer to its May 4 peak, getting above 3,800 Satoshi. However, this time, the price appreciation happens on extremely slim volumes.
The movement of Stellar up the charts has ignited talks of a potential “flippening” with XRP, the rebranded asset of Ripple. Stellar is seen as one of the projects potentially bringing distributed ledger solutions to the business, and even cross-border payments, through its partnership with IBM. Stellar uses a system of nodes and reputation to verify transactions, achieving speed through partial centralization.
Based on data from CryptoCompare, XLM has a 21% inflow of Tether (USDT). But the chief reason for the rally is the pairing with Bitcoin, where the rapid appreciation translated into a higher XLM price.
The XLM pickup also follows the announcement at the end of last week that Coinbase was exploring the addition of the digital asset. The news dashed expectations that Coinbase would add XRP. Investors have noted that XLM is the open source version similar to the Ripple approach for a distributed ledger. Both projects were led by Jed McCaleb, with Stellar being created as a pro bono, open source platform.
XLM trading is now extremely active in Asia, with Binance being the leading exchange, but also heavy volumes are seen on UpBit and BCEX, where XLM is paired with CK USD, a fixed-price asset. The renewed speculation may see the asset appreciate further, as its price also depends on Korean Won trading.
The Stellar project received a continued boost from the expectation of a Coinbase listing, much like Ethereum Classic (ETC). But now, trading is much more subdued, and some believe the coin has completed its run, and will not repeat it.