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.
XLM/USD isn’t a subject of high volatility. Its most significant fluctuations happened in 2017 and 2018. The pair touched the highest level of $0.9381 on January 4, 2018.
However, similar to other cryptocurrencies, its value declined fast, and the downtrend continued until the beginning of 2019. During 2019, the cryptocurrency moved sideways. However, 2020 changed the situation. The medium-term uptrend highlighted the end of 2020.
At the beginning of 2021, the price traded above $0.35. Yet, bulls have lost their strength, and the price declined. As of January 17, the XLM/USD pair has been forming a new uptrend. Will bulls have enough power to push the XLM above the previous top, near $0.35?
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. A Piece of Technical Analysis
- Stellar Lumens Price Prediction According to Top Market Analysts
- Our Verdict on Stellar Price Prediction
- Month-by-Month XLM Prediction 2021
- Our Stellar Price Prediction for 2021
- Stellar Long-Term Price Forecast
- Our Stellar Forecast 2021 – 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 you can see, the price has been moving sideways after a short-term decline in the first days of January 2021. The average price is $0.30. If the cryptocurrency breaks above the recent peak, it will confirm the uptrend. If the overall crypto trend is bearish, there is a risk the price will move to the lows of January 11, 2021.
Currently, the coin’s market capitalization is ranked 10th by CoinMarketCap, at ($6,738,875,698). The circulating supply is 22,095,601,011 XLM.
What Happened to Stellar Lumens in 2019-2020?
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.
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.
As for 2020, this has been a unique year due to the ongoing pandemic and economic crisis.
However, not only global events affected the value of the XLM: internal factors also played a part.
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.
The next event that supported the digital currency was CoinQvest’s usage of the company’s 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.
In July, the company announced cooperation with Samsung, so Stellar blockchain became available on Samsung Galaxy smartphones.
Jed McCaleb claimed a partnership with 30 banks and ventures, which contributed to the coin’s strength. XLM was trading within the $0.08-0.10 range until the middle of November.
At the end of the year, the price moved up and down. XLM/USD closed the year near $0.12.
2021 can be profitable for Stellar. During the first days of January, the price surged as traders moved from XRP to Stellar blockchain payment network. Ripple has been going through difficult times due to the SEC lawsuit.
Additionally, Stellar started cooperating with the Ukrainian government to digitize their national fiat currency.
A Retrospective Study – The Rush or the Crush. A Piece of Technical Analysis
Let’s consider what levels can serve as barriers to the XLM/USD pair’s upcoming price movement.
After the surge at the beginning of January, the pair declined. Currently, there is no strong trend as the price has been moving sideways. If bears prevail on the market, the price may fall to $0.27. In the case of the breakthrough, the pair may decline to $0.2080.
However, if the coin gets additional support, it may rise to $0.3450. The next level is placed at $0.40. Still, this resistance is approximate as there are no strong past thresholds above $0.3450.
The Awesome Oscillator is in the bullish area, above 0, which signals the odds of the uptrend.
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:
Let’s look at the workable and failed forecasts to define experts that can help us predict the most accurate future prices of the XLM.
On July 15, 2020, Kevin Cage (a famous crypto investor) posted his price predictions for various altcoins, including XLM. He forecast that, in the short-term, XLM will rise to $0.20. The coin reached this level in November 2020.
Crypto-Rating saw XLM at $0.1281 in October 2020. The projection didn’t work. Still, other forecasts may be more successful. By March 2021, the price is supposed to be at $0.1592. In the middle of 2021, XLM/USD is anticipated to trade near $0.1937.
Beincrypto forecast Stellar would be worth between $35 and $45 by the end of 2020. This prediction was over-optimistic and, of course, didn’t work.
Our Verdict on Stellar Price Prediction
Month-by-Month XLM Prediction 2021
Here is the monthly forecast for 2021.
Our Stellar Price Prediction for 2021
According to our estimation, by September 2021, the Stellar price will be, on average, $0.30. The maximum price expected is $0.45, whereas the potential minimum price is $0.2080.
Stellar Long-Term Price Forecast
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.
DigitalCoinPrice has a similar prediction. According to the website, the crypto asset will be near $0.98 in 2025. In 2028, the price will cross the $1 threshold, moving to $1.36.
WalletInvestor.com sees the average price of XLM at $0.33 in January 2025. By the end of the year, Stellar will fall below $0.30.
Tradingbeasts.com has a more optimistic outlook. By 2024, the average price of the XLM will fluctuate near $0.50.
Our Stellar Forecast 2021 – 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.
In 2030, the value of Stellar will be approximately $7.31 and could see it break the $10 mark in 2040.
This might take several decades to happen and it’s impossible to predict what will happen by then.
Positive XLM Predictions
The majority of experts (and the writers at 3Commas) believe that XLM will continue to increase in value over the upcoming years. Although the digital asset won’t surge above $1 in the near-term, trading activity near $0.50 is likely.
If the overall cryptocurrency sentiment is optimistic, XLM will get an additional boost.
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, Longforecast.com has one of the most pessimistic forecasts. During the year, the price of the cryptocurrency will be set near $0.20.
Still, traders should remember that any fall in a price is an opportunity to buy at lows. Stellar isn’t anticipated to disappear soon. The coin is still among the ten top cryptocurrencies. It’s a subject of limited volatility. Thus, even if the price declines, you can use this to buy more coins.
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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