Stellar (XLM) one of the most important cryptocurrencies in the world, surpassed Litecoin’s market capitalization today Wednesday July the 18th. The cryptocurrency founded by Charlie Lee did have a good increase in the last hours, but Stellar skyrocketed exponentially growing more than 29% in 24 hours.
Stellar Skyrockets in the Market
Stellar was able to scale and reach new records in the cryptocurrency market after taking the 6th place occupied by Litecoin, one of the oldest and most important virtual currencies in the crypto scene.
But what happened that Stellar grew so fast and so much in such a short period of time? Well, two important things took place. The first one is related to the general sentiment in the crypto world. Most of the cryptocurrencies in the market registered gains in the last 24 hours after Bitcoin spiked from $6,700 to $7,400 in just an hour on July the 17th. For example, we see Bitcoin growing 10%, Ethereum (ETH) 5%, XRP 7% and Bitcoin Cash 8%.
The second interesting point to mark is that the technological firm IBM has decided to back a stable-coin that is being built on the Stellar network. Buyers of the coin will be able to deposit U.S. dollars with Stronghold’s partner bank, Prime Trust. In this way, it will be possible by the company to issue tokens on a 1-to-1ratio.
Sean Bennett, Stronghold’s co-founder and CTO, explained:
“The process for seamlessly managing and trading assets of any form from digital to traditional currencies, needs to evolve as financial institutions are seeking ways to break into new asset classes like cryptocurrencies. Asset-backed tokens can provide seamless access to all currencies, improving the global movement of money.”
With the participation of Stronghold, it will be possible for institutions and investors to exchange U.S. dollars for Stellar lumens and any other asset that is supported on the Stellar network.
“The digitization of real-world assets using blockchain can dramatically transform many forms of financial transactions conducted around the world,” explained Jesse Lund, global vice president of IBM Blockchain. “New types of fiat-backed instruments like Stronghold’s USD token have the potential to improve the backbone of international banking operations and payments.”
At the moment of writing this article, Stellar grew 29% in the last 24 hours, has a market capitalization of $5.64 billion dollars and each token can be purchased for $0.3 dollars. At the same time, Litecoin is being traded in the seventh position in the market with a total capitalization of $5.24 billion dollars.