In mid-July, Binance announced support for both Stellar (XLM) staking and airdrop rewards. Despite Binance planning to distribute some 9,500,000 XLM tomorrow, the price of XLM has plummeted some -52% since the announcement.
Despite the long-awaited Stellar airdrop on Binance happening tomorrow, things are not looking good for Stellar by any metric. In fact, among all the leading cryptocurrencies, Stellar posted the worst losses in 2019 thus far. Two weeks ago, we reported that XLM was down -38.11% since the start of the year. Since then, this has only gotten worse. From the Binance announcement in July to now, the cryptocurrency is down some -52%.
A Surprise Stellar Drop
In mid-July, XLM was trading at around the $0.125 mark. Now, at the time of writing, it is oscillating around the $0.06 price point. This spectacular decline has happened in just over a month.
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Many were hoping that the Binance announcement would provide one of the leading cryptocurrencies with some relief. The exchange announced then that it would be supporting Stellar staking on its platform, meaning that users could store their XLM on Binance for monthly rewards. Moreover, the exchange would also be airdropping all of the rewards it has earned, with some 9,500,000 XLM set to be distributed to those holding at least 10 XLM in their wallet. However, this $589,000 airdrop did not seem to convince the market, as the price continues to tumble.
Stellar’s New Approach
The thought was that Binance staking the asset along with its airdrop would apply positive price pressure from July through August. It was intended to incentivize holders. However, with Bitcoin on shaky indicators, XLM has taken the worst hit in the top 20 cryptocurrencies. Last week, Stellar also tried to reorganize its marketing strategy with the launch of a new website. However, the market seemed to not respond and the response was lukewarm at best.
It seems that Stellar will have to further realize adoption and actual use-case if it wishes to retain its spot as a leading cryptocurrency. For now, investors are left burned and wondering if they will have a suitable exit in the near future.
Why do you believe XLM is performing so exceptionally poorly in this market? Let us know your thoughts below in the comments.
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