Stellar XLM/USD is an open network that allows money to be moved as well as stored.
It was released in 2014 and had a native cryptocurrency token known as Lumens, a bridge that makes it less expensive to trade assets across borders.
The MoneyGram partnership as a catalyst for growth
On August 21, we covered how whale accounts transferred 109.1 million XLM through three transactions.
On September 6, the traditional cross-border payments company known as MoneyGram pushed efforts towards collaborating with the Stellar blockchain network with the goal of creating instant money transfers.
This will be done through the usage of Circle’s USDC stablecoin.
That being said, the companies have plans to start with a pilot in Q4 of 2021, with the potential to release a gradual rollout in early 2022.
This news comes after the case with Ripple, where their collaboration with MoneyGram stopped after the U.S. Securities and Exchange Commission (SECO) filed suit against Ripple in December of 2020, claiming violations in federal securities laws.
Alex Holmes, who serves the role of the Chairman and CEO of MoneyGram, pointed out that this partnership with Stellar is different from the one the company previously had with Ripple, which leveraged the crypto firm’s on-demand liquidity (ODL) to facilitate foreign exchange (FX) trading.
Should you invest in Stellar (XLM)?
On October 7, Stellar (XLM) had a value of $0.36.
To get a better perspective of what kind of value point this is for the token, we will be comparing it to it’s all-time high value as well as its performance in September.
In terms of the all-time high value of the token, XLM was worth $0.87 on January 3, 2018. This shows us that it was $0.51 higher in value or by 141% at its peak.
In terms of its performance in September, XLM started off with a strong increase in value to $0.42 on September 6.
However, by September 29, the value fell to $0.25. This shows us that the value fell by $0.17 throughout the month, which is a drop of 40%.
That being said, from September 29 to October 7, it raised its value by $0.11, which is an increase of 44%, which is still quite interesting to see.
Based on this data, we can get a heightened perspective of the growth patterns seen in XLM and can predict that by the end of October, the value of XLM will increase to $0.48, putting it higher than its peak in September.
The post Should you invest in Stellar after the MoneyGram Partnership? appeared first on Invezz.
from Market Analysis – Invezz
