07/16 – 07/22
- Total market cap. reached $281.95 bn (a12.5% increase), where 7 day trading volume strongly rebounded by 35.1% for top 100 crypto
- 24 July: EOS to list on Bitpanda exchange
- 27 July: The last trading date for CME Bitcoin futures
THOUGHTS OF THE WEEK
Stellar Lumens (XLM) has surpassed Litecoin and become the 6th largest cryptocurrency in terms of total market capitalization this week. On 17 July, XLM became the first cryptocurrency to obtain Sharia compliance certification for remittances and asset tokenization. As noted in our Chart of the Week, the price of XLM once surged to BTC 0.0000437 following a series of positive news.
We believe that the Sharia compliance certification granted by Shariyah Review Bureau (SRB) gives XLM a first-mover advantage in accessing Islamic remittance markets, including those of the Middle East and South Asia, with estimated 2017 market sizes of US$57 bn and US$113 bn respectively. The global average cost of remitting $200 was 7.1% in 1Q 2018, twice as high as the sustainable development growth target of 3%.
XLM is in a strong position to seize the remittance market, as its blockchain facilitates a streamlined payment system which eliminates physical documentation and automates contract execution without centralized parties, and thus significantly reduces transaction costs. In addition, remittances processed on the XLM blockchain also removes cross-border fees and the need for exchange rate conversion.
The launch of the “Stronghold USD” token (which serves as an USD anchor) on the XLM blockchain by IBM and Stronghold further supports the asset tokenization business for XLM. As stated by Jed McCaleb (Co-founder of XLM), this USD anchor is “a cornerstone piece of bringing the Stellar network to mass market adoption”. Besides, the introduction of the USD anchor on the XLM blockchain enables easier access for banking institutions to integrate with public blockchain networks, without impeding their core banking and compliance infrastructures.
The prospects of XLM are further boosted by the announcement that Coinbase is considering the addition of XLM to their asset base. We believe the price of XLM will surge further in the future if this listing is confirmed.
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