Stellar Free Airdrop Incoming as XLM Price Continues to Correct

Initially, the announced airdrop worked wonders for Stellar lumens as the altcoin slowly but surely passed Bitcoin Cash (BCH) in total market capitalization. The price of XLM rose past previous resistance levels but has since hit what looks to be the ceiling. On the chart below, you can see the three metrics: market cap, USD price, and BTC price. At the time of this writing, only the BTC price has been positively affected by the news of the airdrop. However, even the BTC price is trending downwards, as the positive BTC price movement observed in the chart has more to do with the recent value losses that BTC and the rest of the cryptocurrency markets experienced. In other words, it may be a mirage. While increasing adoption is important and the airdrop itself is not a bad thing at all, it seems that this move may end up hurting Stellar. The inflationary expectations have already shaken the market foundation, and the airdrop distribution hasn’t even started yet. Once it does, we can reasonably expect another sharp drop similar to the one that happened on Nov 20 as newfound XLM holders dump their coins on the market.

Your XLM is on its way and we have even more to give! Spread the love — give someone their first cryptocurrency via https://t.co/XyETX72QBk today 🚀 pic.twitter.com/6tdxQ4vldM

— Blockchain.com (@blockchain) November 23, 2018

In the short-term, the decision to distribute $125 million dollars to five million people will most likely negatively impact the price of XLM. In the long-term, the efforts to increase cryptocurrency adoption may be successful and also provide Stellar lumens with an increased level of ‘brand’ awareness for years to come. At the time of distribution, how many coins will comprise $25 worth of XLM? Let us know your predictions in the comments below!