Stellar Lumens was one of the coins that gained a lot of attention at first, but it did not achieve the same strong growth as some other coins such as Bitcoin or Ethereum. There are several reasons that may explain why XLM is not as prominent as others:
1. Strong Competition: XLM aims to improve cross-border financial transactions, but it faces strong competition from currencies like Ripple (XRP) and Bitcoin, which seek to achieve the same goal.
2. Limited applications: Although the Stellar network was intended to facilitate money transfers between countries, the adoption of this technology has not been as widespread as expected.
3. Late developments: Some other cryptocurrencies have seen continuous updates and technical innovations, which has attracted attention to them, while XLM has not seen the same level of continuous development.
4. Regulatory challenges: Some cryptocurrencies, including XLM, face challenges in some countries due to legal regulations, which limits their wider use.
5. Focus on the traditional financial market: The Stellar network is mainly geared towards large corporations, which makes it less attractive to individual investors.
Why has XLM seen its value increase recently?
Despite the challenges XLM is facing, it has seen a significant increase in its value over the past two weeks. There are several reasons that could explain this rise:
1. Increased demand: Positive news or new partnerships may lead to increased interest in the currency, contributing to increased demand for it.
2. Speculation: Like many cryptocurrencies, there may be moves from speculators who bet on short-term price increases, leading to higher prices.
3. Technical improvements or updates: If there are updates to the Stellar network, such as improving transaction speeds or reducing fees, this may lead to increased optimism about the currency.
4. General Market Movements: Sometimes, the entire market experiences an upward movement, causing the prices of many cryptocurrencies, including XLM, to rise.
advice:
If you are considering investing in XLM, you should keep a close eye on the market, as the current surge could be temporary and prices could fall if conditions change. Always make sure to follow XLM news and any new developments that may affect its value.
