Buying Onyxcoin (XCN) Could Be Better Than Stellar (XLM): Here’s Why
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Which has better profit potential, Onyxvcoin or Stellar? Here’s what Lee the Captain, a crypto YouTuber, has to say.
The analyst made a strong case for why investors might want to consider Onyxcoin (XCN) over the more established Stellar (XLM). The analysis, shared on his channel in a video offers an interesting perspective on the potential growth opportunities in the cryptocurrency market.
Market Cap Comparison and Growth Potential
According to Lee the Captain, the mathematics of market capitalization plays a crucial role in his preference for XCN. He points out that if XCN were to reach $0.25, it would represent a 61x return from current prices, resulting in a market cap of approximately $8 billion. To put this in perspective, this would only be about 10% of Dogecoin’s all-time high market cap, making it a reasonably achievable target.
In contrast, Lee highlights that for XLM to achieve a similar 61x growth, its price would need to reach around $31, pushing its market cap to nearly $950 billion. This scenario, he argues, seems highly unlikely in the short to medium term, given the current market dynamics and historical precedents in the cryptocurrency space.
For investors interested in XCN’s potential, Lee suggests that the current market conditions present an opportune time to consider entry positions. The token can be purchased through various cryptocurrency exchanges that have listed XCN, though investors should always conduct their own research and consider their risk tolerance before making any investment decisions.
Fundamental Analysis: XLM vs XCN
While acknowledging XLM’s strong fundamentals, Lee the Captain presents a balanced view of both cryptocurrencies. He emphasizes that the Stellar blockchain has established an impressive reputation and achieved significant adoption in the financial sector. However, he argues that focusing solely on fundamentals might lead investors to miss out on potentially higher returns from emerging projects.
The analysis draws attention to XCN’s role as the native token of the Onyx protocol, which shares similar goals with Stellar in improving financial services through blockchain technology. Lee suggests that both projects target similar markets, but XCN’s smaller size provides more room for growth.
Lee the Captain points out that while fundamentals are important, they shouldn’t be the only consideration. He draws a parallel with Bitcoin, noting that if fundamentals were the only criterion, everyone would simply invest in BTC, despite its limited potential for exponential growth in the current market conditions.
For those looking to invest in XCN, Lee recommends starting with well-established cryptocurrency exchanges that have listed the token, ensuring proper security measures are in place, and considering a dollar-cost averaging strategy to manage risk effectively.
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Growth Trajectory and Market Opportunity
A key point in Lee’s analysis is XCN’s current market position. Despite recent positive price movements, the project’s market cap hasn’t reached $200 million, making it significantly smaller than established players like XLM. This smaller size, Lee argues, is precisely what makes XCN an attractive investment opportunity.
The analysis delves into the broader market potential, with Lee highlighting the projected growth of the global trade and finance market to $5 trillion by 2028. Given the massive size of the payments market, currently valued at over $2 trillion, he sees significant opportunity for XCN to capture market share and grow substantially.
Lee the Captain emphasizes that while XCN is neither a micro-cap project nor an established giant, this middle-ground position could be ideal for investors seeking significant returns. He suggests that this sweet spot in market capitalization provides a balance between risk and potential reward.
For investors considering XCN, Lee recommends focusing on reputable exchanges, implementing proper security measures, and developing a clear investment strategy. He suggests starting with a small position and gradually increasing exposure based on market conditions and personal risk tolerance.
Investment Strategy and Future Outlook for XLM and XCN Prices
Lee the Captain concludes his analysis by addressing the common arguments from XLM and XRP supporters. He challenges the notion that investors should only focus on established cryptocurrencies, arguing that the essence of crypto investing is identifying promising projects before they achieve mainstream success.
Looking at the next 6-12 months, Lee maintains his bullish stance on XCN’s potential performance compared to XLM. While he’s careful to note that this isn’t financial advice, his analysis suggests that XCN’s smaller market cap and similar use case to XLM could provide better percentage returns for investors willing to take on additional risk.
Read Also: Can Ripple (XRP) Dominate the Next Altcoin Season?
The comparison particularly focuses on the realistic growth potential of both tokens, with Lee emphasizing that while XLM is a solid project, XCN’s current market position offers more upside potential. He suggests that investors consider their investment timeline and risk tolerance when making decisions.
For those interested in investing in XCN, Lee advises thorough research into various cryptocurrency exchanges, emphasizing the importance of choosing platforms with strong security measures and sufficient liquidity. He recommends starting with a small position and gradually building it up through dollar-cost averaging while maintaining a long-term perspective.
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