Stellar Lumens (XLM) was created to help users break free of the boundaries inherent, at the time, to international transactions. These boundaries included lengthy transaction times and pricey fees. The developers of Stellar Lumens wanted to solve these obstacles by providing a quick and cheap way to send and receive money across the world. However, it’s worth noting that the cryptocurrency itself was created by the Stellar network to operate within its system.
The question is, though: with so many forms of cryptocurrency out there, will it stand the test of time? And what events will affect XLM price in the future? Should you invest in Stellar Lumens? Keep reading this article to find out the most realistic predictions!
- Overview of Stellar (XLM)
- Stellar Price Today (XLM/USD) – Price Fluctuations
- A Retrospective Study – The Rush or the Crush
- Stellar Lumens Price Prediction According to Top Market Analysts
- Our Verdict on Stellar Price Prediction
- Month-by-Month XLM Prediction 2020
- Our Stellar Price Prediction for 2021
- Stellar Long-Term Price Forecast 2025
- Our Stellar Forecast 2020 – Is It Time to Buy?
- Bottom Line: What Does the Future of Stellar Depend On?
Overview of Stellar (XLM)
Stellar is a peer-to-peer, decentralized exchange area, whereas Lumen (XLM) is the coin that’s used on the platform. The Stellar platform was launched in 2014 – and, since then, Lumen has made a spot for itself in the top 20 most popular cryptocurrencies as of September 2020.
XLM’s developers understood that there are many areas of the world in which people don’t have convenient access to financial services – and, even if they do have access, such services may be too costly. That’s why XLM’s team is dedicated to making financial services accessible, as long as they have Internet access and simple hardware.
The current value of 1 unit of XLM is $0.076019 (as of 07.09.2020 on CoinGecko). XLM’s value reached an all-time high in early 2018, shooting up to $0.8755. The spike was brief, and the value soon returned back to normal – it has been fairly stable throughout 2020. The numbers don’t nearly compare to what it was worth in 2018-2019, but it is still significantly more valuable than in the first couple years of its existence.
Advantages of XLM
- Speed – When you use XLM to transfer money to somebody, the process is incredibly efficient. The transaction only takes 3-5 seconds in most cases. The recipient will receive funds much faster than if you had sent a wire transfer, especially if it is an international payment.
- Cost – As aforementioned, an XLM transfer is impressively affordable, making it a competitive way to send money when compared to other methods.
- Easy currency exchange – With certain types of currency, it can be difficult to find a working currency pair. However, when you use XLM, all of this is done seamlessly by the sender.
- Accessible – You don’t need much to get started with XLM. You just need an internet connection and access to an online platform or a crypto wallet.
- Decentralization – Stellar is a decentralized platform, meaning that nobody is in control of the coin’s actions. The community authorizes the transactions, and proof of fulfillment for each transaction is stored on the blockchain – thus, providing full transparency.
Disadvantages of XLM
- No mining – Unlike BTC, XLM is unable to be mined since it doesn’t use Proof-of-Work.
- Not widely accepted as a payment method – Nowadays, you can use BTC to pay for many goods and services. XLM, however, is not as widely accepted by retailers.
Stellar Price Today (XLM/USD) – Price Fluctuations
As mentioned earlier, the price of Stellar has fluctuated since its creation in 2014. Over the last year, specifically, there has been a significant amount of fluctuation, as seen in the chart below:
What Happened to Stellar Lumens in 2019?
XLM experienced some heavy changes throughout 2019 and early 2020. In Q3 of 2019, in particular, XLM suffered. BTC was floundering in the market, and other cryptos suffered as well. XLM opened Q3 of 2019 at $0.10 – and for most of the quarter, the price was in the red. However, come September at the very end of Q3, XLM experienced a 40% run from $0.058 up to $0.083. Throughout the entire quarter, this was the greatest opportunity for speculators.
Once Q4 of 2019 began, XLM clocked in at just above $0.061, and it stayed pretty constant for the first couple weeks of October. In the second half of October, BTC jumped from $7,500 per coin to $9,600, and XLM followed suit a couple of weeks later.
From October 31 to November 5, its price increased by 31% ($0.064 to $0.084). That was the last part of 2019 in which traders had the opportunity to make simple games. Mid-November, the XLM market experienced a slow decline and closed out 2019 at $0.045. Still, this was a significant improvement from where it had opened at the beginning of Q3.
Now we’d like to give you a little context for what was going on in the XLM markets, besides just raw numbers. In Q4, the Stellar Foundation pledged to airdrop an incredible 2 billion XLM tokens for Keybase users. This airdrop was supposed to last the span of twenty months; however, the giveaway was abandoned after only three months. The Stellar Foundation only ended up dropping 300 million XLM – worth about $16 million. The Foundation claimed that the cancellation was due to spammers taking advantage of the system.
In November of 2019, Stellar’s developers announced that they would destroy 55 billion XLM – this was an enormous amount of over half of the total supply. This permanently reduced the amount of XLM on the market, thus causing a 14% push in early November.
XLM in Early 2020
Now, let’s fast-forward to early 2020. This has been a unique year due to the ongoing pandemic and economic crisis. Typically, we only take a look at the previous year during our historical market analyses, but we’re making an exception for 2020.
On April 11, 2020, the Stellar Lumens Foundation released its report for Q1 2020, showing excellent ecosystem growth. What’s more, the total usage and transaction volumes had increased in comparison to Q4 of 2019. Interestingly enough, though, the total number of registered Stellar accounts decreased by 1.79% between Q4 2019 and Q1 2020. When you take the 8% increase of trading volume into account, this means that the increased activity was due to existing users. Stellar’s daily operations also managed to increase by an incredible 113% throughout Q1 2020.
What developments are new for Stellar in 2020? Well, the developers recently convinced CoinQvest to use its network to process international payments. Because of this, Stellar can now move millions of USD in just a couple of seconds – and at the price of just a few pennies. This is incredibly cost-effective for when the sender and the recipient are thousands of miles apart.
The Stellar devs have also been continuing to work on their own e-wallet, which was slated to be released in Summer 2020. However, it is a little behind schedule and has not yet been released – this is likely due to the worldwide slowdown caused by COVID-19.
A Retrospective Study – The Rush or the Crush
Our technical analysis takes the post-COVID crash into account. Over the last couple of years, XLM has lost its position in the list of the top 10 cryptocurrencies due to its poor performance in the cryptocurrency bear market.
However, after studying XLM’s market trends of 2020 (and the context behind fluctuations), we predict that Stellar Lumens will increase in value to some degree, reaching $1-$2 in total by the end of Q4 2020. Its current price is underestimated when compared to BTC price growth since the beginning of 2020, making it a good time to enter.
Stellar Lumens Price Prediction According to Top Market Analysts
Cryptoground has a very bullish price prediction for XLM – based on their algorithm, they predict that:
WalletInvestor, on the other hand, has a totally different outlook. The analysts on their team are known for making very programmatic forecasts – and, in this case, they believe that:
Another online analysis service, DigtalCoinPrice has predicted that:
Crypto-Rating has an even more favorable outlook on XLM than Cryptoground does. According to their forecast:
5. Kevin Cage
On July 15, 2020, Kevin Cage (a famous crypto investor) posted his price predictions for various altcoins, including XLM.
He predicts that, in the short-term, XLM will rise to $0.20.
BNB – $54; ETH – $450; ZIL – $0.07; XLM – $0.20; XPR – $0.60; BAT – $0.65; QNT – $22
Stay Positive.Kevin Cage
Our Verdict on Stellar Price Prediction
Month-by-Month XLM Prediction 2020
Here is our monthly forecast for the rest of 2020:
|Month||Min. Price||Max. Price||Average Price||Change|
|November 2020||$0.0906431||$0.1332987||$0.1066390||24.02 %|
|December 2020||$0.0902186||$0.1326744||$0.1061395||23.44 %|
Our Stellar Price Prediction for 2021
According to our estimation, in exactly one year (September-November 2021), the Stellar price will be, on average, $0.1014681. The maximum price expected is $0.1268351, whereas the potential minimum price is $0.0862479.
Stellar Long-Term Price Forecast 2025
In five years (November 2025), we predict that Stellar will have an average price of $0.991, a minimum of $0.84235, and a maximum of $1.13965.
Our Stellar Forecast 2020 – Is It Time to Buy?
According to our predictions – and that of the experts, too, Stellar is not likely to increase in value significantly over the next few years. It might be a decent cryptoasset to purchase now and hold for the long-term – for example, if you can hold it for decades.
This might take several decades to happen and it’s impossible to predict what will happen by then.
In 2030, the value of Stellar will be approximately $7.31 and could see it break the $10 mark in 2040.
Positive XLM Predictions
The majority of experts (and the writers at 3Commas) believe that XLM will continue to increase in value over the next several years. Some even make very bold claims, which we don’t quite agree with. For instance, Beincrypto predicted last year that Stellar would be worth between $35 and $45 by the end of 2020. As we are rapidly approaching Q4 of 2020, this seems highly unlikely.
Negative XLM Predictions
There are a few analysts who believe that XLM will either remain at a constant or that it will crash. For instance, Coinpredictor has forecasted that XLM will drop by 44% by the end of 2020.
The future of Stellar depends on if the developers are able to continue fostering the ecosystems by pairing with major exchanges. The good news is that they are already on the right track. We don’t anticipate that XLM will ever overtake BTC but, if the devs play their cards right (and avoid disastrous marketing events such as the canceled giveaway), then they will be able to grow their ecosystem even more. We predict that Stellar will regain its spot as one of the top 10 forms of cryptocurrency.
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