Stellar (XLM) could be ready to move higher after a very positive quarter in 2021. The digital currency has been following the expansion of the crypto market and it could continue moving higher in the next few weeks.
In recent weeks, Stellar has been in the news due to the fact that iTrustCapital, the number one crypto IRA platform, added support to the XLM digital asset. In this way, investors could select XLM as a currency for their retirement accounts. Thus, this XLM price prediction shows that it might be possible for this virtual currency to continue with its bull market.
There are different reasons why Stellar could continue moving higher in the future. Not all the factors are technical. Indeed, there are some fundamental things that we should take into consideration.
For example, Stellar works as a payment processing system. It is possible for individuals and companies to process payments and send and receive transfers almost instantly using XLM. This network makes cross-border transfers cheaper and faster. In this way, firms reduce their expenditures on transfers and make their services more efficient.
It is also worth taking into consideration that Stripe, one of the latest payment gateways in the world, is investing in XLM. Indeed, they own 2% of all the XLM in existence. Stripe is also a strong PayPal competitor. In the future, we could see this company integrating XLM or at least using it to perform transfers.
Stripe is one of the firms in which Elon Musk invested several years ago. The company has been growing over the last years and it could help the entire Stellar ecosystem move forward.
Other Stellar Partners and Possibilities
Stellar has built a network of reputable partners. For example, IBM is already using the Stellar network through IBM World Wire. This project is examining possible ways for companies and financial institutions to send and receive money using the stellar network. The XLM digital asset would work as a gateway between two currencies.
Compared to XRP, XLM is not considered to be a security, which makes it easier to adopt and use. Finally, Grayscale Investments, leading crypto investing company offering digital currencies to larger investors, has also added Stellar to the services offered to companies.
In the future, XLM could also become a currency for decentralized finance (DeFi) projects. However, this highly depends on whether the Stellar network would be compatible with smart contracts and if it would support different DeFi protocols.
The main benefits of the Stellar platform are related to speed and fees. Nowadays, the Ethereum (ETH) platform can handle a limited number of transactions. This is why some DeFi solutions are not so efficient as their founders would like.
If DeFi solutions become available on top of the Stellar platform, it might be possible for it to be the place for new DeFi solutions and developments.