Home Finance Stellar (XLM) Price Drop Is Alarming – What’s Next For The Crypto?

Stellar (XLM) Price Drop Is Alarming – What’s Next For The Crypto?

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Stellar Lumens (XLM)’s goal is to enable fast, low-cost and secure financial transfers across borders and its fee for these transactions is lower than most cryptos.

It has an average of 2 to 5 seconds transaction speed and all these features among others make it an attractive cryptocurrency.

Stellar investors are alarmed following Upbit fraud rumors 

The news out of South Korea concerning Upbit’s alleged involvement in fraud could have triggered worries among Stellar investors.

This doesn’t come as a surprise especially if we take into consideration that XLM/KRW is the currency’s top volume generator.

Upbit is one of the largest exchange markets in the region, and it controls a market cap of $2.1 billion.

XLM’s trading volume on this massive platform makes up only 0.60% of the global demand. In other words, Stellar is not going to be the biggest loser if something goes wrong at Upbit.

This worry may be felt more by EOS (EOS) and Tron (TRX) that have most of their volume generated via the platform.

Even if the general feeling is that Stellar will not be affected too much, its dependence on the platform concerning demand or liquidation could hurt the crypto.

Stellar’s current state 

XLM is ranked 35th on CoinMarketCap regarding trading volume, and it contributes just 0.27% of the market which is the lowest among the top 10 cryptos.

As the bears are still dictating movement for the third day, Stellar is one of the top losers. XLM is down by 9% in the last 24 hours and by 25.54% in the past week. This bearish trend is a market-wise issue, but for Stellar, this decline is gradually worsening as its value tanks.

Currently, Stellar is trading at $0.31 against the dollar on CoinMarketCap.

More declines over the next 24 hours would put even more pressure on XLM investors allowing the bears to take hold. But if the market rebounds and a positive trend emerges, moving up to $0.35 would be possible if the bulls marshal enough support.