With 10 years of selling pressure from SDF and lack of demand, 2022 doesn’t look good for Stellar (XLM)
The Coin Bureau host announced her prediction for Stellar (XLM) the next year after its XRP competitor’s lackluster performance in 2021.
Source: Tradingview
In one Video The other day, analyst Guy said that although the price of XLM has doubled this year, the altcoin’s returns are “the peppercorn” when compared to the performance of other cryptocurrencies.
The poor price performance of XLM, according to Guy, is due to the main reason: selling pressure, particularly from the Stellar Development Foundation (SDF), a non-profit organization dedicated to developing and growing the Stellar network.
“The fund received only $ 3 million when it was set up. To the best of my knowledge, they have not received any further funding since then. This means the fund relies on XLM sales to pay the cost and finance the expansion of the Stellars ecosystem. This is not an unsubstantiated speculation. The fund’s XLM spending is clearly listed on the institution’s proxy page, and I appreciate their transparency.
The latest figures show that the fund has spent more than 5 billion of its 30 billion XLM to date, and about 3 billion of them last year.
In addition, a paragraph at the end of the credentials notes:
“As we said when we first announced this framework in November 2019, we plan to use or distribute the majority of XLM within 10 years and possibly sooner.”
Hence, the selling pressure won’t stop anytime soon.
Guy also said that apart from continued selling pressure, there doesn’t seem to be much demand for XLM. Institutional investors may be avoiding the asset due to regulatory uncertainty surrounding XRP, the analyst said.
However, Guy says a positive outcome from SDF’s partnership with MoneyGram could allow XLM to return to its January 3, 2018 record high of $ 0.87.
In October, the remittance giant announced the integration of the Stellar blockchain into its network, which enables cash and local currency payments to users with Stellar USD Coin (USDC).
“The only demand for XLM is coming from the organizations that the Stellar Development Foundation has partnered with, and these partnerships have only just begun to take shape. In terms of the outlook, that paints a pretty optimistic picture for XLM in 2022 and I could see XLM re-test its early 2018 highs if the partnership with MoneyGram delivers on its promise. Stellar also has no shortage of major milestones that could attract both institutional and retail interests. ”
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With 10 years of selling pressure from SDF and lack of demand, 2022 doesn’t look good for Stellar (XLM)
The Coin Bureau host announced her prediction for Stellar (XLM) the next year after its XRP competitor’s lackluster performance in 2021.
Source: Tradingview
In one Video The other day, analyst Guy said that although the price of XLM has doubled this year, the altcoin’s returns are “the peppercorn” when compared to the performance of other cryptocurrencies.
The poor price performance of XLM, according to Guy, is due to the main reason: selling pressure, particularly from the Stellar Development Foundation (SDF), a non-profit organization dedicated to developing and growing the Stellar network.
“The fund received only $ 3 million when it was set up. To the best of my knowledge, they have not received any further funding since then. This means the fund relies on XLM sales to pay the cost and finance the expansion of the Stellars ecosystem. This is not an unsubstantiated speculation. The fund’s XLM spending is clearly listed on the institution’s proxy page, and I appreciate their transparency.
The latest figures show that the fund has spent more than 5 billion of its 30 billion XLM to date, and about 3 billion of them last year.
In addition, a paragraph at the end of the credentials notes:
“As we said when we first announced this framework in November 2019, we plan to use or distribute the majority of XLM within 10 years and possibly sooner.”
Hence, the selling pressure won’t stop anytime soon.
Guy also said that apart from continued selling pressure, there doesn’t seem to be much demand for XLM. Institutional investors may be avoiding the asset due to regulatory uncertainty surrounding XRP, the analyst said.
However, Guy says a positive outcome from SDF’s partnership with MoneyGram could allow XLM to return to its January 3, 2018 record high of $ 0.87.
In October, the remittance giant announced the integration of the Stellar blockchain into its network, which enables cash and local currency payments to users with Stellar USD Coin (USDC).
“The only demand for XLM is coming from the organizations that the Stellar Development Foundation has partnered with, and these partnerships have only just begun to take shape. In terms of the outlook, that paints a pretty optimistic picture for XLM in 2022 and I could see XLM re-test its early 2018 highs if the partnership with MoneyGram delivers on its promise. Stellar also has no shortage of major milestones that could attract both institutional and retail interests. ”
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
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