On 10th September, Lightyear, a subsidiary of Stellar Development Foundation, a non-profit financial platform announced the purchase of Chain, a blockchain startup. Chain and Lightyear will no longer function as independent companies as they have been rebranded under a joint name called Interstellar.
Chain’s Co-Founder, Adam Ludwin has been appointed as CEO of Interstellar with Jed McCaleb, the creator of Stellar and Co-Founder of Ripple taking over as the Chief Technical Officer. Lightyear is an organization focused on the development of Stellar, an open source decentralized protocol for digital currencies.
According to the announcement, Interstellar is focused on helping organizations to build on the Stellar Network. The Stellar Development Foundation will function independently as before. Adam Ludwin stated:
“All of the clients that we have now, have effectively shifted from using a traditional database model to using a tokens model, issuing assets on a local environment. By partnering with Stellar you can fire an asset to another institution.”
Through the collaboration, Chain’s customer base and enterprise products will add to Stellar’s global public ledger effectively creating an end-to-end solution that will allow establishments to issue, exchange and manage assets on what Interstellar believes is a ‘highly-scalable public network’. Ludwin stated:
“Chain did not need to sell the company. This needed to be a great strategic move and a great return and it was both.”
Additionally, Chain’s cloud ledger service known as Sequence will enable organizations to track assets in a simple manner while they pass from the private ledgers to Stellar’s public network.
According to Ludwin, Chain’s current investors which include Visa, Nasdaq, and Citi Ventures are said to obtain a return on their investment. Current enterprise customers who use Chain’s core software for permissioned blockchain will now function under Interstellar.
A Redditor named Negahnpoc commented:
“Don’t forget Nasdaq also contributed to the funding for Chain.”
Another Redditor named Queenpro1 said:
“Much good news for XLM but sorry, this is the bear market.”
A Twitterati named commented:
“Congrats! It’s great to see partnerships like this that help propel blockchain and cryptocurrency forward – specifically at Stellar! I look forward to seeing what new developments come from this great combination.”
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Fall in Bitcoin’s market dominance may be correlated to the fortunes of the altcoin market
The trends set by virtual assets have always highlighted the cryptocurrency market’s inherent volatility and spontaneity. Prices lack symmetry and rarely exhibit consistent growth as different factors come into play to dictate an asset’s valuation.
At press time, the world’s largest crypto, Bitcoin, had stormed past the $11,000 mark and was consolidating to push for a surge over $12,000. The rest of the altcoin market however, apart from one or two minor hikes here and there, has been relatively quiet after collectively surging in the early part of the year.
At the beginning of 2019, a significant number of crypto-assets performed significantly well in a group, wherein most assets demonstrated a prominent hike in their values with little to minor price corrections.
A majority of tokens doubled their valuation until Bitcoin breached the $6,600 resistance. Subsequently, altcoins failed to keep pace as Bitcoin continued to test more resistance limits in the market.
At present time, Bitcoin enjoyed an unprecedented 62 percent dominance in the cryptocurrency market. As its dominance primes itself to climb over the 63 percent mark, many in the community speculate this could be red flags for the altcoin market.
Major cryptocurrency enthusiasts and analysts have stated that altcoins could significantly capitulate if it so happens. However, past events offer a sliver of hope for the altcoin market.
According to CoinMarketCap, the altcoin market has been significantly affected whenever BTC’s dominance has fallen. During the bull run of 2017, Bitcoin enjoyed a dominance of 65 percent and the global market cap hit a value of $402 billion. However, in January 2018, when BTC dominance plummeted, the global market cap peaked at around $710 billion. The dominance was down by half, whereas the global market cap had almost doubled.
A major reason for the same was money funneling into other altcoins after witnessing a shift in momentum from Bitcoin to the rest of the crypto-market. The present market situation may take a similar path once BTC’s dominance falls, opening the door for other virtual assets to take advantage of the scenario.
However, the present rise of BTC is backed by much more certainty than the bull run of 2017. Hence, a repeat of the January 2018 period may be unlikely, and will happen if and only the market sentiment shifts gears drastically towards altcoins.
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