Stellar Lumens has been one of the top cryptocurrency gainers on the market as the prices have soared of cryptocurrencies in general. This cryptocurrency price has gained a two-month high figure and reached a valuation of $0.31. This happened around 18:00 CET when Binance announced its price to be $0.3 and the turnover exceeded the mark of $24 million. This is a clear indication that the coin has gained high interest among investors.
The rise could be attributed to several factors. These include the recent price surge of Bitcoin that has also given other currencies a higher markup. The announcement of Stellar having its own USD trading pair also has had a positive effect on its price.
The announcement came from Stronghold which is a San Francisco based financial institution. They are developing a trade ecosystem and agnostic payment system for such assets. They have launched an asset that is backed by a crypto token on the stellar network. This has become the first venture or a USD anchor for this network also. There was also a recent announcement by Coinbase that the Securities and Exchange Commission has accepted the acquisitions that the exchange has made and that have also been a positive influence on the cryptocurrency market. IBM also made an announcement that it would include a cryptocurrency that would be based on stellar blockchain technology. This has also helped in the meteoric rise of the cryptocurrency price.
Stellar has had a few sluggish trades in recent weeks when its value traded at $0.2 and below. But it has picked up pace over the last weekend and in the past days, also a time when the cryptocurrency market has been picking up pace in general. The past few days have seen a considerable boost given to the market and the positive news has had a cascading effect.
The Stellar Network has a lot going on and though it would take some time, the announcements and new changes that are coming about on its platform would certainly be a positive step forward. Stellar Lumens offers obscure wallets and a Ledger hardware wallet. These are not supported by most multi-asset wallet providers such as Jaxx and Exodus. It is also far from offering versatility and novel payment options such as iTunes gift card which some platforms provide as a means for purchasing cryptocurrencies.
However the ball was set by rolling off the announcement of Coinbase and its multiple intended acquisitions on the stellar network. There are also rumors that Stellar network might be used by the Islamic finance methodology. This will open up the market to billions of dollars that would be moving among capital markets. The network is also one of the first Sharia-compliant networks and hence, the possibilities are there and hence its price rise is imminent. This is good news for investors in a big way.
Once there is greater adoption of the platform Stellar as well as other multi-asset wallet makers would provide support for the development of user-friendly wallets based on new technology. Stellar Lumens might be able to separate the fiat currency and get it off the ramps which would spell a bright future for its network, acceptance for more uses as well as the Lumens assets being appreciated more.
The news that IBM is backing a Stablecoin crypto token on the stellar network, which would be pegged by the dollar, is also recent news. This is what Stronghold is developing, an asset-backed token that would work on the stellar network and would be a trade ecosystem as well as the asset agnostic payment system. This is a venture that is first of its kind and would support USD as well as act as an anchor for this network. Those who buy the coins will pay with US dollars that would be deposited in Nevada based Prime Trust, which is a partner bank of the organization. It would enable Stronghold to issue tokens that would be about one to one ratio. The Stronghold Company also forming a partnership with blockchain IBM would help to identify the uses of Stronghold USD across in business networks based on blockchain technology.
Stronghold also plans to make use of stellar protocols in order to transact in Stronghold USD. This will provide liquidity as well as provide access to the exchange services on the network that would prove beneficial for the system.