• Stellar (XLM) boasts consistent positive performance, surging nearly 100% this year.
• Stellar’s role in micropayments and remittances, institutional partnerships, and the influence of market sentiment all point to a promising future.

Despite a momentary period of stability within the cryptocurrency market, Stellar (XLM) has consistently achieved positive results across its various charts. Its value has surged by almost 100% since the beginning of the year, raising optimism that it might surpass its previous highest point and reach the $1 mark.

We’ve examined the primary elements that could drive this cryptocurrency closer to reaching the psychologically significant threshold of $1, and presented below is a comprehensive compilation.

Revolutionizing Micropayments

With an increase in usage for micropayments, which commonly involve transactions of less than a dollar, there is a prevalent need to facilitate payments for online content, subscriptions, and gaming. However, established payment platforms like PayPal (NASDAQ: PYPL) and Western Union (NYSE: WU) impose substantial fees on such transactions, rendering their utilization impractical for these purposes.

Due to its minimal fees and rapid transaction processing, the Stellar network emerges as an optimal solution for micropayments, positioning itself as a potential contender against the aforementioned conventional payment providers. As it gains further traction within this market segment, the potential for XLM’s value to experience an upward trajectory exists.

Market Mood

The prevailing vibe within the cryptocurrency domain holds significant sway over individual digital currencies. Indeed, when the overall sentiment surrounding the crypto market is upbeat, the inclination to channel investments into cryptocurrencies like Stellar tends to rise.

Especially noteworthy is the impact of favorable news and advancements within the crypto sector, which can set off a wave of bullish sentiment. As traders embrace an optimistic outlook on crypto assets, their enthusiasm often translates into allocating a slice of their portfolio to these assets. Such an uplifting climate can equally apply to XLM, prompting increased interest and investment.

Expansion of the Remittance Market

Given the fact that the remittance sector constitutes a multi-billion dollar enterprise, with expatriate workers serving as a crucial financial backbone for numerous nations across the world, Stellar finds itself in a highly advantageous stance to secure a substantial share of this market due to its exceptional speed, scalability, and cost-effectiveness.

Undoubtedly, the sum of funds transferred by migrants to their respective families and acquaintances in their countries of origin is experiencing rapid expansion. This growth is especially pronounced given the immense count of international migrants, a figure projected to escalate further in the forthcoming years.

Fear of Missing Out (FOMO)

Within the cryptocurrency sphere, the phenomenon known as ‘FOMO’ wields considerable influence, eliciting a sense of urgency among investors. This psychological force could significantly impact the price dynamics of XLM. More specifically, as the value of Stellar’s cryptocurrency gradually appreciates, it can draw in a greater number of prospective buyers gripped by the fear of missing out on potential profits. Consequently, this surge in demand propels both the demand and price of XLM.

For instance, the ‘FOMO’ sentiment might take hold with Stellar due to its established reputation as a renowned digital asset, boasting an extensive user community. This prominence potentially positions it to attract a broader audience than some of its competitors. Furthermore, its diverse range of practical applications in real-world scenarios, such as remittances and micropayments, can also trigger this apprehension and generate heightened purchasing pressure for XLM.

Heightened Institutional Acceptance

Apart from its applicability to micropayments, Stellar’s aforementioned attributes in facilitating cross-border transactions have positioned it as a favored option among banks and other financial entities looking to embrace blockchain technology.

Stellar has forged partnerships with prominent banking establishments, including the Central Bank of Brazil, Western Union, International Business Machines Corp (NYSE: IBM), and Stripe. Sustained efforts in this direction can potentially augment the demand for XLM and consequently contribute to an upward trajectory in its value.

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