Stellar (XLM) just got added to Bitfinex which is a great move for the crypto. Getting listed on one more exchange will make it easier for more people to buy or trade in it.
However, this doesn’t mean that XLM is suddenly up there with the rest of the top 10 or so in terms of trading volumes. There are numerous factors that come into play in relation to trading volumes. The number of exchanges, type of exchange, methods of buying (fiat options are the best), and even location does count. Yet, with all these considered, XLM still has a problem. By this I mean, Stellar still doesn’t command enough volumes in the daily trading charts. According to coinmarketcap.com, XLM is traded in 75 different pairs. These are not the most on the market, but they are significant. Despite this, XLM volumes have drastically dropped since they topped $1.5 in January.
That’s a problem for this great project. It’ll surely be argued that the strength of Stellar’s technology should ultimately elevate it above the rest.
Well, that’s right, but in the current crypto atmosphere, the overwhelming majority of would-be investors and supporters do not care about the tech, let alone trying to understand it. For the ordinary person, the best cryptocurrency isn’t about the technology and all the other jargon, but characteristically leans more towards the publicity-driven hype and potential returns on investments. These are always implied by the extensive and calculated marketing we see in cryptosphere. It’s a sad affair, but that is the reality on the ground. Publicity is good, calculated and strategic marketing is even greater.
I’d say that maybe Bitcoin, Ethereum, and Litecoin do not need publicity as it comes to them due to the level of interest and attention they command. The rest need a bit of strategy to get their projects out there. Stellar may have a team in place for this, but a lot still needs to be done to make people notice it.
Comparing the top 10 coins in terms of daily trading volumes, one quickly notices one thing: XLM is the least traded on the market. For instance, XLM currently has $67 million worth of its lumens traded. The next lowest traded volume is that of IOTA (MIOTA) which $205 million worth of its coins have been traded.
Are partnerships enough?
Stellar (XLM) has a clear strategy regarding the use of their technology and the XLM coin. Then it could be that the team isn’t worried about being run under by one of the mediocre coins that end up doing great on the marketing front. In IBM, they also have one of the best partners that could help in the eventual push for mass adoption. But the thing remains that the current atmosphere needs an aggressive approach to get the technology known and understood.
Most people out here still don’t know what Stellar is. Important as it is for the team to concentrate on polishing the XLM product, it’s paramount that the public is let in on the progress. A good way is to engage the community and let it do the rest in pushing the platform agenda. Yet someone at Stellar thought it fit to cancel a scheduled AMA, with no sufficient explanation.
So, the view that its technology “speaks for itself” may not help the project short term. And that’s not saying that long-term is guaranteed. The very nature of cryptocurrency is so unpredictable that good projects may find themselves swept away with the rest of the 99% of projects that will fail. The simple reason for Stellar supporters to worry is that the tech without a care for investors may be counterproductive in the current landscape.
Getting the public engagement is one great way to promote the project and attract more partnerships for future adoption of the technology. Having a presence in the public forum is definitely one avenue through which XLM demand could be driven. The increased demand will help push value high, attract more partners, major exchanges, and ultimately lead towards mass adoption. So, when we say Stellar (XLM) has a problem, we don’t necessarily mean that they need to spend fortunes on marketing. No, it means to increase awareness and let that be seen in the demand.