The cause of the recent crash in lumens and other cryptos is a disagreement over whether to institute a new governance model in the Stellar Foundation. This issue has sparked heated discussion, which has caused many buyers to sell their holdings. Today’s price drop is just the manifestation of ongoing tension between core developers and those who see an opportunity to make changes from within. The latter are concerned that Stellar will lose its unique identity if it continues along its current trajectory—one with low fees and fast transactions for any currency pair made on its network.
The stock exchange price is just translating the fracture into plain English: “The battle for Stellar’s future is causing core devs to lose respect for the foundation’s current management. We no longer believe in them, nor do we think there will be material improvements in the near future. Therefore, we are selling our XLM holdings.” The resulting price drop is a signal of a lost deal and a loss of confidence that Stellar will become the next big thing.
Stellar Lumens Price Prediction
The price of Stellar Lumens can be expected to fall in the immediate term. However, in the longer term, it will likely rise again. The next few months may see a reversal in demand and a gradual recovery, with a steady rise to the value it had before the drop. We are however more interested in Stellar’s future and growth potential. Here, the case for investing in it is strong. The future looks bright for Stellar and its crypto peers. We think that the next rally to outdo 2017’s highs will stem from the emergence of high-quality, decentralized platforms that are capable of handling a large number of transactions, including those for fiat currencies.The demand for such solutions is already high in all regions and will only grow with an increasingly interconnected global economy and the increasing penetration of smart devices into everyday life. Stellar, like all other cryptos, has an excellent chance to thrive in this environment.
Stellar Lumens’ Price Today: What Is the Cause?
The price of digital coins has been trending downwards over the past few days, with many dips and spikes along the way. This kind of volatility is normal when markets are in a consolidation period. The market capitalization of all cryptos is just above $425 billion and will probably stay within this range in the next week or so. While Bitcoin is still trading near its all-time high, other top cryptos haven’t been able to keep up with it. This has led to extra volatility among digital coin holders and investors, who are worried about missing out on gains. The market is also waiting for the SEC decision on whether or not to approve a bitcoin ETF. The crypto markets are currently high, in large part due to the fact that this digital asset class is still in its infancy and has not seen much volatility in recent months. Far too many people are still trying to get into this market without understanding how it works. This, coupled with the fact that Bitcoin is trading at an all-time high, has led to both buyers and sellers chasing limited opportunities for gains.
What Are Some Of The Potentially Threats To Stellar Lumen Value?
Crypto investors, as well as the general public, should not be too concerned about the price drop in Stellar Lumens. Since its inception, there has been the constant threat of a government clampdown on the technology, especially with states in Asia threatening to ban all crypto-related activities. The truth is, however, that this threat does not affect all cryptos equally. The highly-regulated Asian markets will most likely never allow for large-scale use of Stellar Lumens or other cryptos that run on blockchain technology. This means that these digital assets are perfectly safe from future regulations and bans of this nature.