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Will XRP’s Primary Competitor Outperform Crypto Markets in 2022? Coin Bureau Updates Outlook on Stellar Lumens (XLM)

Will XRP’s Primary Competitor Outperform Crypto Markets in 2022? Coin Bureau Updates Outlook on Stellar Lumens (XLM)
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The host of the crypto channel Coin Bureau is revealing its outlook for Stellar (XLM) next year after the lackluster performance of the XRP competitor in 2021.

In a new video, analyst Jay told 1.78 million YouTube subscribers that while the price of Stellar (XLM) has doubled this year, the altcoin is “peanuts” compared to the performance of other crypto assets.

According to Guy, Stellar’s poor price performance can be traced back to one major reason: selling pressure, specifically from the Stellar Development Foundation (SDF), a nonprofit organization dedicated to the development and growth of the Stellar network.

“The foundation received only $3 million upon its inception. As far as I know, it has not received any additional funding since then. This means that the foundation was relying on its sales of XLM to pay for its expenses and fund the expansion of the Stellar ecosystem, which is not speculation either. The organization’s XLM is clearly visible on its authorization page, and I salute it for its transparency.

The latest figures show that the organization has spent more than 5 billion of the 30 billion XLM so far, and a way back reveals that about 3 billion XLM has been spent over the past year.

What’s more, a paragraph at the end of the mandate states “As we said when we first announced this framework in November 2019, we intend to use or disperse most Lumens within 10 years, ideally before that.” In other words, the selling pressure isn’t going to stop anytime soon.”

Jay also says that in addition to the ongoing selling pressure, XLM does not appear to have many demand drivers. Institutional investors are turning away from crypto assets, possibly due to regulatory uncertainty related to XRP, according to a crypto analyst.

However, Jay says that positive results from SDF’s partnership with MoneyGram could allow XLM to return to its record high on January 3, 2018 at $0.87.

In October, the remittance giant announced that it was integrating the Stellar blockchain into its network, enabling cash financing and payments in local currency to consumers using Stellar USD Coin (USDC).

“The only demand for XLM is coming from institutions that the Stellar Development Foundation has partnered with and these partnerships are just beginning to reach their final form. On the bright side, this paints a very bullish picture for XLM in 2022, and I can see XLM retest early highs 2018 if its partnership with MoneyGram delivers on its promises. Stellar also has no shortage of upcoming milestones, which could attract both retail and institutional interest.”

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