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Stellar Lumens (XLM) price Analysis: Why is it doing so poorly?

With the price of Bitcoin reaching a yearly high point of $6,000, a first since November 2018, the fate for the lesser known coins appears to be rosy.

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Stellar Lumens (XLM) price Analysis: Why is it doing so poorly?

With the price of Bitcoin reaching a yearly high point of $6,000, a first since November 2018, the fate for the lesser known coins appears to be rosy. However, for some, this slightly bullish trend for the big players has not trickled down. Unfortunately, XLM is in this category.

XLM has been in the red for quite some time. The coin is currently priced at $0.092975 a sight that may not be too bad were it not for the increase in gains for Bitcoin and others. Yesterday was one of many miserable days for the token, as it dropped $-0.001211 (-1.28%). This follows the trend of the past month which has seen its price line steadily fall.

However, it was not always doom and gloom for the token. XLM’s Coinbase listing did prompt a brief surge this past month, and the Stellar development foundation’s decision to host a Coinbase Stellar airdrop certainly helped their cause. Furthermore, IBM announced they would be using the Stellar blockchain.

Yet, the case remains that XLM is disappointing many in the crypto community. Along with their rivals, XRP, the bank-centric tokens are having a hard time, despite the success of others around them. So, what has caused this curious set of circumstances?

Some observers feel that the coin is finding its feet and will bottom out only to resurge again. Sometimes you have to go back to go forward as they say. Another theory has suggested that the moves which brought eyes upon the token, like the airdrop, have actually served to lower the price due to the higher circulation.

What do you think of the poor performance? Will XLM return to be bigger, better and stronger? Let us know in the comments.

Jason Lee is a writer for various crypto publications and manages a small team on Medium. His love of technology and inquisitive nature set him up with crypto back in early 2016 and he hasn’t looked back since. In his spare time, Jason enjoys rock climbing and wakeboarding.

1 Comment

1 Comment

  1. AsiaCryptoToday

    Omni

    May 12, 2019 at 11:15 pm

    Horrible coin economics for both XLM and XRP. True beneficiaries are the companies that issue the tokens. In order to entice institutions to use XRP and XLM, I’m guessing that sub market price deals and free “airdrops” are required by the institutions. All they care about now is onboarding new institutions, not about the price for the retail HODer. Today, HODL’s are just the chumps gambling for the opportunity to sell a spike. Also,if you understand the intended technology, the use case is analogus to a lead pipe conduit for other forms of value, which are crowd deemed as stores of value. Why buy the transport pipe, when you could buy the value, which the pipe transports?

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