The cryptocurrency arena has been hit hard by the coronavirus pandemic over the past few weeks, but it seems to be coming back in full force. Currencies like Stellar Lumens (XLM) appear to have regained much of their March losses.
Stellar Is Surging Like Nobody’s Business
Earlier today, Live Bitcoin News reported that BTC – the world’s number one cryptocurrency by market cap – had surged past the $8,000 range for the first time in nearly two months. The currency is easily leading the market’s growth, but other (smaller) altcoins are also making a serious impression, and one happens to be Stellar.
Thus far, XLM is up more than 75 percent since the beginning of the year and currently stands as one of the biggest moneymakers in the top 20. The currency has also doubled its price from where it sat in early March. Bitcoin has also added about 70 percent since it first began taking major tumbles.
Coronavirus fear that surged in April as countries and states began invoking lockdown measures appear to be slowing down, and people aren’t as afraid anymore. The entire cryptocurrency arena is growing like nobody’s business, and for an industry that was battered and bruised when the pandemic first took hold, it has shown extraordinary resilience and strength during this time of economic turmoil.
While the reason for XLM’s sudden rise isn’t quite clear at press time, some have attributed all-around positive news floating throughout the crypto space as the primary reason for the coin’s gains. Santiment – a cryptocurrency analytics platform – explained on Twitter:
Stellar has continued its phenomenal month of April with social dominance and social volume continuing to surge as the crowd figures out whether its run can continue.
Many analysts believe that the global economy is about to grow to unprecedented levels. They also suggest that cryptocurrencies are going to come out on top and will potentially prove themselves once and for all as assets that should be taken seriously and be ranked with more established assets like gold and precious metals.
Alex Kuptsikevich – senior financial analyst at FX Pro – explained in an interview:
Cryptocurrencies will likely be just as vulnerable to global threats as other assets of any kind. However, the difference may lie in the future. After all, some assets may lose their buyers forever, while others will build a new structure on the ruins. In the new economy, there will be a much larger space for purely digital projects.
Some May Not Last
These words do give rise to a small strain of concern, however. The idea that some coins could potentially lose buyers forever doesn’t sit well with die-hard crypto fans, and without buyers, these coins could certainly disappear quickly off the market.
But while some smaller coins aren’t likely to last anyway, it’s good to know that assets like BTC will be around for some time.