This tutorial will give you a clear idea about Stellar Lumens Price Prediction in the future. Also, explore the history, features, risks, etc of Stellar Lumens:
Stellar Lumens or XLM is a cryptocurrency that mainly facilitates corporate cross-border transactions in areas like banking, payments, etc. at a low transaction cost and near-instant manner. Stellar blockchain on which Lumens are built utilizes Stellar Consensus Protocol or SCP, which is different from the Proof of Work algorithm.
As such, it cannot be mined the way Bitcoin and Ethereum are.
Stellar Lumens are used to facilitate peer-to-peer or corporation-based payments. For instance, if you send a USD payment to someone in Mexico using the blockchain, the network converts the USD to XLM and sends it in that form. It then converts the XLM into pesos on the other end. The transaction is instantaneous and at a low transaction cost.
This tutorial discusses Stellar Lumens’ price value and predictions for the future.
What You Will Learn:
- XLM Price Predictions
- Price Prediction Table
- Stellar Lumens Data
- Features of Stellar Lumens That Could Affect Its Pricing
- Risks and Disadvantages of Stellar That Could Lessen Its Price Prospects
- How Stellar Lumens Works
- History of Stellar Lumens and How It Has Affected Its Price/Value
- Price History for Stellar Lumens
- Stellar Lumens XLM Price Predictions
- Stellar XLM Technical Analysis
- XLM Forecasts by Different Analysts Up to 203o
- Stellar Lumens Price Prediction
- Frequently Asked Questions
XLM Price Predictions
Price Prediction Table
|Year||Prediction||Minimum Price||Maximum Price|
- Stellar Lumens cryptocurrency manages a 24-hour transactional volume of around $100 million across 97+ exchanges and apps. We can exchange it with 202 other cryptocurrencies. Trading volume is down 30% from July 2021 to July 2022. Stellar can be traded against USD, Euro, and other fiat or national currencies across 36 exchanges.
- Most trading volume (80%) involves Stellar Lumens being exchanged for stablecoins like USDC and USDT. 11% is XLM against fiat or national currencies like USD and Euros, 7% against BTC, and 1% against Ethereum.
- Stellar Lumens’ total supply of 50 billion tokens impedes XLM crypto price growth, and the network has just 50 validators and is thus highly centralized. These validators are vetted.
- We can derive stellar Lumens price predictions from technical analysis and analytics tools for short-term prediction. Anyone can do such an analysis. However, for XLM long-term price prediction on any crypto or financial asset lasting for years, Steller price prediction models derived from advanced machine learning algorithms (or mathematical functions) and artificial intelligence are advisable.
- Crypto price forecasts for Lumens differ from one analyst to another. These Stellar Lumens predictions range anywhere from $0.2 in 2022 to $7 per coin in 2030. Most analysts agree Stellar Lumens may not see a $1 per coin until 2027.
- Stellar Lumens is not a suitable cryptocurrency for long-term holding, given its slow pace of price growth. There are way too many other cryptocurrencies that are more suitable for speculative traders.
- Stellar Lumens applies for organizations, corporations, and companies that need to carry out cross-border payments and transactions at a very low cost and a high speed (instantaneous). Companies can build wallets and apps on the blockchain while general users can rely on existing dApps to do transactions and payments.
- Stellar XLM price predictions are reliable for investors but should be used alongside other information, data, and financial advice when one is deciding to invest in XLM. All Stellar crypto price predictions provide a general guide to the future outlook for purposes of trading and investing, but are far from being perfect.
Stellar Lumens Data
Stellar Lumens data and price chart:
- Market Capitalization: $2.5 billion+
- Supply Limit: 50 billion.
- Amount in Circulation: 25.11 Billion tokens. The rest is with Stellar Development Foundation and will be released to the public in time.
- Developer: Stellar Development Foundation.
- Original Authors: Jed McCaleb, Joyce Kim.
- Validator Nodes: 66 including Stellar Development Foundation’s 3 nodes and 21 other organizations.
- Network Fees: 0.00001 XLM.
- Minimum balance for each account holder: 1 Lumen.
- Stellar Lumens facilitates cross-border transactions and financial transactions for ordinary citizens and corporations like banks, etc. It is very similar to the XRP in the application.
- Stellar Lumens cannot be mined like Bitcoin or Ethereum, but there are other ways of earning income by investing in it – they include the Grayscale Stellar Lumens Trust fund and staking derivative tokens issued by projects built on the network.
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Features of Stellar Lumens That Could Affect Its Pricing
The image below shows the top 8 perpetual futures markets for Stellar Lumens:
- Comprises multiple projects built or developed on Stellar blockchain. These include payment apps, etc., and performing functions such as moving money, exchanging money, facilitating the transfer of value, etc. These include MoneyGram, which facilitates anyone to exchange any cash currency for USDC crypto stablecoin.
- Third-party apps and dApps act as network anchors to facilitate usability and transactions. Companies use blockchain to build wallets, own apps, and even their own tokens.
- Stellar blockchain is also being utilized for NFT and smart contract mining.
- The blockchain cryptocurrency works with any currency and money, as such it can be utilized to transfer any kind of value with ease.
- Ultra Stellar products built on the Stellar blockchain allow users to earn or generate passive income. Though it does not support staking, yXLM, yUSC, yBTC, and yETH are stake-able tokens issued on Ultra Stellar and which can be staked to earn passive interest.
- Binance Futures allows trading of Stellar Lumens futures products. It can be traded on 25+ futures markets.
Risks and Disadvantages of Stellar That Could Lessen Its Price Prospects
- Centralization is a characteristic of the Stellar blockchain network with Stellar Development Foundation holding $30 billion tokens yet to be released to the public. This could lessen the price growth prospects directly.
- There are only about 50 verified validators on the network. This is a factor that boosts centralization because it increases the chances of node collusion and leaves room for attacks on its processing capabilities.
- Account holders must hold 1 XLM in their balance and this means it is not free to create or maintain the account. The requirement to hold 1 XLM was implemented to prevent bad actors and spammy transactions.
- Highly volatile meaning it varies greatly or by a huge margin even within a very short duration.
How Stellar Lumens Works
- Stellar runs a system of decentralized servers, each of which runs a decentralized ledger that is in turn updated every 2 to 5 seconds. The ledger is used to track all transactions and store account balances. All balances and transactions are broadcast across all network participants.
- The transactions are only validated by computers running the core Stellar software, also called nodes. Nodes are also used to verify transactions in all the blockchains. Transactions are confirmed within five seconds.
- Stellar consensus protocol uses the Federated Byzantine Agreement (FBA) algorithm that uses a portion of the network to approve or validate transactions on the network.
- A node will choose another set of trustworthy nodes and, when a transaction is approved by all the nodes within the set, it is considered approved. The process facilitates around 1,000 network transactions per second.
- Its instantaneous, simultaneous validation across all accounts makes it more suitable for cross-border validation, unlike the Nostro-Vostro process used by fiat bank systems for cross-border transactions (which requires lengthy conversion and reconciliation).
- Stellar Lumens blockchain is now used by prominent organizations like Deloitte and IBM.
History of Stellar Lumens and How It Has Affected Its Price/Value
- The cryptocurrency was founded in 2014 by the founder of Mt. Gox and Ripple co-founder Jed McCaleb and former lawyer Joyce Kim.
- Mercado Bitcoin, the first Brazilian crypto exchange, became the first to use the Stellar network in August 2014.
- Stellar Blockchain was updated in November 2015 to use the Stellar Consensus Protocol, in which accredited and vetted validators are chosen among the network participants to verify and approve transactions.
- Stellar’s for-profit entity Lightyear.io was launched in May 2017. An award of $2 million worth of Lumens was launched to boost project development on the network/blockchain.
- Integration with Vumi happened in 2015, with Oradian in 2015, with Deloitte in 2016; and then with Coin.ph, Tempo Money Transfer, and Flutterwave in 2016.
- IBM and SureRemit partnerships took place in 2017. Ukraine Ministry of Digital Transformation also partnered with Stellar in the development of Ukraine’s digital infrastructure. The value of Stellar increased by 40% after the latter partnership.
- In February 2021, Stellar Lumens announced integration with USDC, which means its users will transact USDC on Stellar.
Price History for Stellar Lumens
XLM Lumens price history movement:
- Stellar Lumens started trading at $0.001 in 2014 when Brazilian Bitcoin exchange Mercado started utilizing the Stellar blockchain. Stellar’s lowest price was $0.001227 in November 2014.
- In January 2015, the price was $0.003 and its market capitalization touches $15 million. In April, the price remained the same.
- In July 2016, Stellar price was $0.001 as Deloitte. In May 2017, Lightyear commercial arm of Stellar was launched, and the price jumped to $0.04. The $2 million development grant program was launched in September 2017. The Stellar price was $0.02. IBM and KlickEX partnerships came in October 2017 and the price was $0.03.
- In January 2018, Stellar Lumens reached $0.9381, and this serves as its all-time-high price. However, it returned to trading at $0.2 at the end of the year. The cryptocurrency spent the better part of the year at $0.1.
- In January 2021, Ukraine’s partnership with Stellar made it gain a significant increase in value and the price surged 40% to $0.29.
- In April 2021, the crypto made huge gains to trade at $0.6898 per coin. A month earlier, it had attained a price point of $0.5295. On May 16, the coin was trading at $0.7965, and on May 19, $0.6563. The coin was hit hard by a crypto crash to close the month at $0.4034.
- After a substantial recovery to $0.4403, the cryptocurrency returned to trading at $0.25 on December 19.
- The price was $0.1073 in July 2022.
Stellar Lumens XLM Price Predictions
Stellar Lumens increased as much as 143% in 2021 amidst an overall bull run in crypto markets. It traded as much as 32.3 cents per token on June 16, 2021. In November 2021, the coin was trading for as much as $0.44 but fell to $0.2726 at the end of the year.
Anyone can use technical analysis for short-term price prediction, but XLM long-term price predictions running for several years may require expertise tools based on advanced algorithms like machine learning and AI.
Developers, experts, and analysts used these tools to predict XLM crypto prices as well as prices for other cryptos and tokens including Bitcoin, Ethereum, and others.
Let us now focus on Stellar coin price predictions by different analysts and experts.
Stellar XLM Technical Analysis
The cryptocurrency is still in price discovery mode, as it is relatively new to the market (6 years of operation) compared to most cryptocurrencies.
This can cause hefty swings that may tend to discourage investors. It has better prospects than quite a number of cryptocurrencies, as it is being utilized by many companies in the corporate world, such as in the supply chain and logistics industry.
However, its centralization may be its greatest impediment to price traction. It only has 66 nodes and these are corporates that must be verified to use the network due to trust issues. Such centralization may influence the price to ensure that the transaction costs remain low for the corporates using it for settlement and other purposes.
XLM Forecasts by Different Analysts Up to 203o
- The Coin Price Forecast puts an XLM price prediction of $0.15 for 2022, $0.16 in 2023, $0.19 by the end of 2024, and $0.28 by end of 2025. It could trade at between $0.5 and $0.53 by mid to end of 2030.
- Wallet Investor provides a more bullish XLM price prediction stating that the cryptocurrency could trade at $0.17 by 2022, between $0.24 in the middle of 2023 and $0.18 at the end of the year, $0.24 on average in 2024, and between $0.30 and $0.37 in 2025.
- The Economy Forecast Agency (EFA) expects the cryptocurrency to trade at $0.07 at the end of 2022, between $0.05 and $0.07 in 2023 and 2024, and then starts at $0.08 in 2025. The price could fall to $0.04 in mid-2025 according to this XLM price prediction long-term.
- Tech News Leader projects the crypto could be trading at between $2.51 and $3.44 from the start to the end of 2030.
- Cryptocurrency Price Prediction places an XLM prediction of $3.24 per coin at the start of 2030 and $4.25 per coin by the end of the year.
Stellar Lumens Price Prediction
Stellar Lumens is projected to trade at an average price of $0.16 but the price could fluctuate between $0.16 and $0.18 this year. This has been the most reasonable price forecast for Stellar Lumens so far. Other analysts projected the coin to reach a price of as high as $0.30.
Analysts from DigitalCoinPrice firm, for instance, predicted that the coin would reach $0.28 by 2022. They said it could trade at $0.24 lowest and $0.27 on average. WalletInvestor made a much more bullish XLM prediction for Stellar Lumens saying the price could reach a maximum of $0.407.
TradingBeasts predicted the price could reach an average of $0.254 and go as high as $0.67. PrimeXbt projected the coin to trade between $1.2 and $2.5 between 2022 and 2023, while a prediction by CryptoNewsZ put the XLM price prediction at between $0.26 and $0.30.
Government Capital has placed an XLM price prediction of $0.5 for XLM in 2022. Hence, appropriate predictions could be taken anywhere between $0.16 and $0.3, otherwise, they are too optimistic.
XLM crypto is expected to break the $0.21 price barrier in 2023 and take a significant upside turn. If it fails to break this barrier, it will probably trade at between $0.17 minimum and $0.21 maximum and an average of $0.21. However, this is likely a much more pessimistic outlook for the XLM crypto price.
The price is assumed to rise between $0.23 on the minimum and $0.27 on the maximum. This means the average price will be $0.24. Other experts expect the cryptocurrency to trade at between $0.28 and $0.34.
Research by Coinjournal puts the prediction at $0.48. This, according to the research, may be contributed by the Stellar network and blockchain becoming a top network for interoperability between modern and traditional financial infrastructure by 2023.
This could be more accurate if there is an improvement in the transactional volume. We can use this as a more reasonable forecast for consideration of the network potential.
However, according to last year’s analysis given by a Coinmonk analyst, the cryptocurrency could reach $1.91 by the end of 2023, which seems too optimistic.
$0.24 maximum price is a more pessimistic prediction for XLM but very possible given its coin metrics. Some experts expect it to trade at a minimum of $0.16 and an average of $0.20.
A more reasonable prediction forecast is that XLM could trade at between $0.33 and $0.40 with the average price being $0.34 based on more optimistic price outlooks for the cryptocurrency. Another probable XLM prediction is that it could trade at between $0.26 and $0.34.
More careful XLM predictions state that the price will hardly break the $0.3 price point in 2025. The predictions expect the price to be $0.24 on average. This estimate can be taken as based on a less optimistic outlook of the cryptocurrency.
However, based on more optimistic XLM.price predictions, XLM could trade at between $0.36 and $0.44 in the year 2025. The introduction of dApps on the Stellar network could still boost usability, and this could make the price spike as high as $2.81, according to an analysis by trading education.
DigitalCoinPrice forecasted the price to reach $0.41 by end of 2025, TradingBeasts $0.431 by end of 2025, and PrimeXbt between $1.75 and $7.75 from 2024 to 2025. CryptoNewsZ predicted the crypto to trade at around $0.48.
A price point of between $0.21 and $0.26 would still be possible for XLM in a bear market but it is very highly likely as posited by other crypto experts that the price could range between $0.73 and $0.85 on the maximum, and on average at $0.75 in 2026.
Stellar Lumens could trade for as low as $0.25 and as high as $0.31 in 2017, based on some XLM Stellar price predictions. We can take this as much less optimistic. More probable predictions say the crypto could trade at an average price of $1.06, with the minimum being $1.02 and a maximum of $1.25. Breaking the $1 barrier could be very significant for XLM.
XLM future forecasts show that the cryptocurrency could trade between $1.51 and $1.81 in 2028. This means the average cost will be $1.57. A much less optimistic and likely improbable XLM crypto price prediction puts the possible price at between $0.38 and $0.44 and an average of $0.44.
Stellar Lumens is expected to trade at between $2.19 and $2.56, with the average price being $2.26. This is highly likely. A more pessimistic price outlook for the cryptocurrency posits that the coin could trade at between $0.51 and $0.56, with the average price being $0.54.
- Price Predictions gave a $5.15 price point as the 2030 XLM coin price prediction for XLM cryptocurrency. It could trade at $5.73 highest according to this analysis. We can regard this as the most appropriate if at all the current expected XLM token growth is going to be sustainable over the years.
- trading education analysts posit that the cryptocurrency and blockchain could give Internet payment giants like PayPal a run for their money and one XLM could trade for as high as $7.78 by 2030.
- However, Coin Price Forecasts put the price prediction by mid-2030 at just $0.50. Cryptocurrency Price Prediction puts its XLM forecast in 2030 at $3.24 per coin. The coin would strengthen its position to $4.25 by the end of the year according to the prediction.
- Tech News Leader also puts a forecast of $2.51 per coin at the beginning of 2030, $2.94 in mid-2030, and $3.44 by December 2030.
The price of XLM is projected to be between $4.47 and $5.25 with the average being $4.63.
What could lead to XLM price growth? Will XLM go up 250?
- Growth in the number of dApps or apps on the Stellar Lumens network. This will most likely occur after the project listed USDC for use and asset exchange on the network. Currently, anyone can exchange any national currency with XLM.
- Adoption by more users. This could lead to high transactional usability for the cryptocurrency.
- Increase in derivatives products and other ways to invest in XLM. The Grayscale Stellar Lumens Trust is another way of investing in Stellar cryptocurrency without having to buy or store the cryptocurrency.
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Where and How to Buy Stellar Lumens
Stellar Lumens crypto exchange and trading platforms/apps:
- Lobstr is a native Lumens exchange that lets people buy Lumens on the network, using Visa and MasterCard. It is a decentralized exchange for the network. It also acts as a decentralized Lumens wallet. Lobstr also acts as a portfolio tracking tool. Lobstr is a mobile Android and iOS app.
- Other exchanges on which you can buy XLM include Coinbase, Binance, and 100+ others. These exchanges and apps would require you to sign up, verify your account, deposit fiat or other crypto, and use the latter to buy Lumens.
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Frequently Asked Questions
Q #1) Can XLM reach $5?
Answer: XLM is expected to reach a price of $5 by 2027. Token supply has been a huge limiting factor to its bullish trends. For instance, with a 30 billion circulating supply, it would have to attain a $120 billion+ valuation to attain the price of $5. Indeed, some analysts see it as never reaching that price point any time soon.
Q #2) Do Stellar Lumens have a future?
Answer: Stellar Lumens price has been increasing slowly since its inception, from $0.001 in 2014, $0.29 in 2021, and $0.10692 in July 2022. It started with a maximum supply of 100 billion tokens but has since destroyed half of that supply.
The cryptocurrency is projected to attain a price of $1.5 by or in 2027. The cryptocurrency may then rise to $5. This means it has a future, though not as bright as for other cryptocurrencies with better or more viable tokenomics.
Q #3) Should you invest in Stellar Lumens?
Answer: Stellar Lumens is way much similar to XRP in usability or application. It has very slow price growth, which will certainly be sustainable because it will become rarer with time.
Furthermore, the cryptocurrency still works for many corporations using it for cross-border transactions and other financial utility. This will likely boost its value over a very long time.
Q #4) Should I buy XRP or Stellar Lumens?
Answer: Stellar Lumens is not only much more accessible than XRP but also more directed to general users than Ripple which is more applicable for banking institutions. However, from a speculation point of view for holders and day traders, XRP is much preferable. XRP also has a more accelerated price growth over time compared to Stellar Lumens or XLM.
In fact, XRP could grow to as much as $10 by 2030, going by multiple predictions made about its price, while XLM will stay below $5. In 2021 alone, it increased by 143%.
Q #5) Why is Stellar Lumens XLM so cheap?
Answer: One of the factors making it so cheap is the slow uptake of its blockchain. Another could be stiff competition from similar blockchains like Ripple, but since others still face the same competition, Stellar’s tokenomics could be the problem.
The crypto project started issuing 100 billion Stellar coins and later reduced the supply cap to 50 billion tokens. This high supply means a huge market capitalization should be reached for the price growth rate to accelerate significantly.
Q #6) Is Stellar better than Ethereum?
Answer: Sure, it is better than Ethereum in terms of its blockchain algorithm not requiring energy-intensive mining of coins. Plus, its price point and transactional costs could be other advantages for Stellar Lumens. Many companies may prefer it to move value across borders because of lower transactional costs.
However, the Ethereum blockchain is much more usable for developers looking for a more viable ecosystem. It has thousands of dApps already built on it, manages a very huge transactional volume and liquidity, and has a higher price potential.
Q #7) Can Stellar Lumens Reach $10?
Answer: Stellar Lumens does not have prospects to reach $10 in the near term. We expect such a price point probably after the short term in the range of 2040 and beyond. Very bullish results indicate it can reach about $3 in 2027 or after 2030.
Therefore, it may not be a great asset-holding investment in the short term. Its price prospects are further limited by the fact it is more of a centralized cryptocurrency.
Q #8) How high can Stellar Lumens Go?
Answer: Stellar Lumens has the potential to reach only around $1 in 2025 and $3 in 2027 or beyond. We could see a $5 beyond 2030 if the current crypto economic situation is sustained. We still could see the price reaching $10, but way beyond 2050 and beyond.
This tutorial discussed the price forecast for XLM Stellar Lumens cryptocurrency. A price of $1 won’t be too much of an asking for XLM even by the year 2025, since we have seen it record an all-time-high price of $0.9 in 2017 during a general crypto bull run.
The greatest challenge for XLM in accelerating its price growth rate is its tokenomics. For instance, it has a total supply of 50 billion tokens. The other is its drawback in Ukraine following the Russia-Ukraine war, which happened after a partnership with the ministry of information.
This may be negated by accelerated development of dApps and third-party projects on the platform. Another boost could be last year’s listing of USDC on Stellar to facilitate transactions between any national currency with the stablecoin on the network.
We, however, did not see it attain such a price during the 2021 bull run when Bitcoin was at $68,000 per coin in November. Instead, the cryptocurrency remained under $0.4 for the better part of November and October 2021, since hitting $0.7 on May 16, 2021, when Bitcoin was $46,393 per coin.
We expect that the year 2022 may not be the year the cryptocurrency crosses the $0.3 mark. The coin will probably hit $0.5 by 2024 and $1 by 2027. A $2 per coin is a huge possibility by 2030.
Time taken to research and write this tutorial: 24 hours.