The 6th largest cryptocurrency, Stellar has made a good name for itself while giving a good competition to Ripple. With a market cap of $2.33 billion, it has even got names like IBM Deloitte, SHIFT Markets, Stripe, and Wanxiang Group in its bag.
With Bitcoin price currently struggling around $4k and have dropped to $3,200 at one point, the entire crypto market is bleeding red. In tandem with Bitcoin, Stellar price is also struggling having lost over 86% of its value since its ATH.
At the time of writing, XLM has been trading at $0.1215, losing 0.02 percent in the USD market while being in the green by 1.30 percent in the BTC market.
XLM 7-days price chart, Source: Coinmarketcap
However, when it comes to trading volume this cryptocurrency is really suffering. Currently, Stellar is managing the 24-hour trading volume of less than $100 million. Among the top 10 cryptos, Stellar has only beaten Bitcoin SV which has 24 hours trading volume of about $45 million.
Bitcoin Cash (BCH) with $197 million trading volume is one of the coins closest to Stellar along with Tron (TRX) at $203 million and XRP at $471 million 24-hour trading volume.
Whereas, Bitcoin (BTC), Tether (USDT), and Ethereum (ETH), in this order has the highest trading volume.
Top 10 Cryptocurrencies, Source: Coinmarketcap
Trading volume is an imperative factor of a crypto’s market movement as it indicates the entire activity of a particular token in terms of sold and bought in a time frame. When making a decision to buy or sell the token, trading volume plays a crucial role by providing the necessary information about the token’s ongoing trend.
One of the major reasons for low trading volume is XLM’s presence on a limited number of exchanges and lack of fiat trading pairs. This has been due to feeble marketing efforts from Stellar’s side as recently admitted by Stellar founder, Jed Caleb in his interview with Yahoo Finance,
“We’ve done a pretty poor job of marketing it and telling the world what Stellar is about. I think they have a vague notion that it’s for payments, but I don’t think they know the details and the real power of it. We’re hoping to change that in 2019, but it’s a process.”
With the general public involved in crypto still preferring fiat and banks, it is essential for this crypto to offer more fiat pair options to XLM enthusiasts, traders, and investors. In terms of adoption, XLM has yet to grow more unlike other cryptos like Litecoin, from which it recently took the 6th spot.
XRP, its major competitor has added numerous exchanges and partnerships with big banks to its name along with the most active community of supporters in the crypto.
This year, as stated by McCaleb, XLM just might see a surge of investors and in its trading volume with amped up marketing efforts of Stellar Foundation.