The bitcoin price has been falling over the past couple weeks, potentially due to the much-hyped Alibaba IPO. Many altcoin prices–which tend to be tied to the bitcoin price–followed suit. However, a few altcoins defied the trend and continued to grow their market cap. One such altcoin, Stellar, the new project from Ripple co-founder Jed McCaleb, saw its price increase by more than 35% during a week when the bitcoin price fell by 15%.
On September 15, the stellar price was 611 satoshis. It slowly climbed over the next two days, reaching 680 satoshis on September 17. The uptrend increased its pace for the next two days. On September 19, the stellar price peaked at 995 satoshis–its highest mark since it reached its all-time high of 1,017 satoshis on August 10. The next day, the stellar price dipped back under 900 satoshis, but it quickly began moving upward again. At present, the stellar price is 994 satoshis, representing a ~$4.9 million market cap and a 14th-place market cap ranking (via CoinMarketCap).
CoinGecko ranks Stellar 9th according to its comprehensive metric algorithm. Its 54% score, though not ideal, ties it with Darkcoin and Monero. Like both those coins, Stellar has average liquidity (52%), and a low community score (31%) which is offset by an impressive developer score (77%). Stellar’s developer score is bolstered by the fact that its developers do not operate behind the shroud of anonymity. While having known developers does not guarantee a coin’s success, it demonstrates the developers are willing to stake their professional reputations for the project.
Stellar’s CoinGecko ranking is currently five spots higher than its market cap ranking, which could indicate that Stellar’s overall coin health is outperforming its market cap. This often indicates that a coin’s market cap (and thus price) is slated to rise–at least in the short term. However, investors should keep in mind that Stellar inflates at 1% per year. While 1% is a relatively low rate of inflation, it will still devalue already existent coins. Moreover, investors should remember that all altcoin investments carry great risk. As the recent surprise departure of Karma’s lead developer demonstrated, investors should not take anything for granted. Never invest more than you willing to lose.
Disclosure: The author has 10,400 stellars (~$40), which he received in the initial Stellar giveaway.
Images from Shutterstock.
Last modified (UTC): September 23, 2014 03:22