Is Stellar Lumen a Good Investment?
Stellar Lumen (XLM) has returned a staggering 187.08% Year-To-Date after succumbing to the pressures of the COVID-19 pandemic in March 2020 when the whole financial markets were in a freefall.
XLM has seen institutional interest, partnerships and integrations in the past one year but does it have what it takes to be a competing cryptocurrency and a blockchain of choice for several developers and investors?
With competing altcoins such as Cardano (ADA), Tron (TRX) and Ethereum (ETH) providing smart contracts and aiming to colonize the web of decentralized finance (DeFi), can Stellar Lumen compete for the greatest share of the DeFi market?
Ripple (XRP) through its company (Ripple Labs) is currently going through a civil case with the Security and Exchanges Commission (SEC), will Stellar Lumens (XLM) take advantage of XRPs slight mishap in management and become a mainstay cryptocurrency and blockchain of choice in the area of providing on-demand cross-border payment solutions to several business organizations?
On 2nd March 2021, it was announced on Stellar Lumens (XLM) Turkish Twitter handle @StellarXLMTR that “Grayscale is buying and buying more $XLM, the growth of institutional interest”.
Grayscale is the leading digital asset manager in the world and has more than $36.1 billion in assets under management. Grayscale purchased a total of 35,855,625 XLM over the past month which is equivalent to $15,283,080 in fiat currency before the announcement.
Grayscale purchased 6,568,516 XLM which is the equivalent of $2,799,760 in the last 24 hours after the announcement. With this, the company has added a new trust to its ever-increasing assets called Stellar Lumens Trust.
XLM has increased by 23.37% from a trading price of $0.3398 on the 1st day of February 2021 to $0.4192 on the 1st day of March 2021 signalling an increment in the price of XLM after the investments made by Grayscale.
This institutional interest is in line with XLMs roadmap for 2021 where it aims to extend the popularity of the cryptocurrency in terms of credibility as well as make it the first option of choice for business leaders, consultants, regulators and policymakers.
According to the Chief Executive Officer (CEO) of Grayscale Michael Sonnenshein, “Digital currencies have reached an inflection point. Investor demand has never been higher, and every day we are seeing new entrants to what has surely become a bona fide asset class”.
Such investor demand is what Crypto Rating has taken into perspective as to the long term potential of XLM.
Experts at the rating agency forecast XLM to surpass performances of the past where it reached an all-time high of $0.9381 on 4th January 2018 and reach a price target of $0.69 in the next five years (2026).
Crypto Ground has opined that among all the cryptocurrency projects which have been running currently, the project which has the most support and validation from crypto enthusiasts is XLM as a result of its roadmap targets which are normally achieved annually.
Such a strong factor has made the online portal that provides blockchain and cryptocurrency news and updates to predict the altcoin to cross the $0.74 price in the long-term.
Experts at Prime XBT support the long-term potential of the crypto asset and sees XLM as a speculative asset which is still trading in the market to try and discover its real price.
With this, the award-winning trading platform which allows you to trade global markets sees a run towards $4.40 by the end of 2023 for XLM and another price milestone of $10 as at the year’s end of 2025 for the digital asset.
There are several assets that do not have a roadmap on how its future is going to be, fortunately, XLM has one. With an average transaction fee of $0.000004 and a network that is capable of running 1,000 up to 5,000 transactions per second (TPS), Stellar Lumens’ transactions per second are 50 to 250 times faster than Ethereum (ETH) and 100 to 500 times better than parent crypto, Bitcoin (BTC).
Trading at a price of $0.3777 having experienced a 3.72% drop in value, with a market capitalization of $9.14 billion and trade volume of $786,117,545 in the last 24 hours, Stellar Lumens is gradually flirting with the $10 billion asset price valuation which would categorize it as a large-cap digital asset.
Such valuation means there is investor interest in the cryptocurrency and its network. Stellar Lumens (XLM) is a crypto asset that has a huge potential in the market according to experts and can be considered by any investor on their portfolio of investments.
Stellar Lumens: What is it?
Stellar Lumen stands for a blockchain network and a cryptocurrency. Stellar is the blockchain and Lumen which is represented by the ticker symbol (XLM) is the network’s native token (digital currency).
Stellar is a blockchain network which serves as an open-source distributed payment infrastructure which facilitates transactions between individuals, payment services and banks.
Stellar is a bit different from BTC and its forks, Litecoin (LTC) and Dash (DASH) and employs a federated byzantine agreement algorithm (Stellar Consensus Protocol) instead of proof-of-work (POW) and its related algorithms which require mining for transaction validation.
Who Created Stellar Lumens?
Founder of Ripple Labs (blockchain-based payment system), Bitcoin exchange Mt. Gox and a longtime cryptocurrency entrepreneur, Jed McCaleb is widely credited as the founder of Stellar Lumen (XLM).
There is another person called Joyce Kim (who is a close associate of Jed McCaleb) who also played an invaluable role in the decentralized asset’s creation.
By being an integral member of the crypto and blockchain space, Jed was able to liaison with industry experts and the Stellar project received funding from payment company STRIPE. Other organizations which donated to the project’s cause are Google, FastForward and BlackRock.
When Did Stellar Lumens Start Trading?
Stellar Lumens (XLM) started trading on 4th September 2014 with a price of $0.0021 as per data retrieved from CoinTelegraph.
Why Was Stellar Lumens (XLMs) Created?
Stellar Lumens was created with a primary goal of addressing the scalability issue associated with blockchain technology and connecting financial institutions via the blockchain to make it relatively lower in terms of transaction fees and faster with regards to processing speeds, especially, for developing economies.
Where Was Stellar Lumens Created?
The idea of XLMs and its network was conceived and executed in the United States of America. A non-profit corporation Stellar Development Foundation (SDF) supports the cryptocurrency and its network and can be found in Delaware.
How Many Stellar Lumens (XLM) Are In Supply?
There are currently 24.20B XLM in circulation on a total supply of 50,001,806,812 XLM.
What Are the Pros and Cons of Stellar Lumens (XLM)?
There are several pros and cons of using XLM which can have a great impact on its adoption and real-world use cases.
Pros of Stellar Lumens
✅ The cost of an XLM transfer is relatively cheaper when compared to other cryptocurrencies.
XLM transaction costs are near zero ($0.000004). The same cannot be said for Ethereum (ETH) whose gas fees ($16.01) are pushing users to other networks of altcoins Tron (TRX), Cardano (ADA) and cross-chain platform, Polkadot (DOT). Bitcoin (BTC) also has a relatively higher price and floats up and down daily around $21.11.
✅ The processing Speed of Stellar is one of the best in the whole cryptocurrency and blockchain technology space which makes it extremely efficient.
This is possible because the transfer of lumens (XLM) does not require any approval from miners which helps provide a relatively quicker transaction time. Stellar’s Network is capable of running 1,000 up to 5,000 transactions per second (TPS). As a result, XLMs transactions per second are 100 to 500 times better than parent crypto, Bitcoin (BTC) and 50 to 250 times faster than the kind of decentralized finance (DeFi), Ethereum.
✅ Accessibility is one of the primed features of all cryptocurrencies. XLM can be accessed in any part of the world so long as the user has access to an internet connection.
✅ Decentralization is an essential part of the whole crypto finance space.
Stellar has its development foundation which promotes its usage and adoption as well as make upgrades to the network but authentication and validation of transactions are done by a group of select nodes (community). Proof of all the transactions are then stored on a blockchain which shows full transparency of operations.
✅ There is an Ease of Currency Exchange.
For traders and investors, finding currency pairs is extremely difficult, but XLM is listed on several cryptocurrency exchanges and brokerages which make it easy to trade. It is extremely easy to send as well since numerous currency converters list XLM making it easy for transactions to go through in an easy and secure way.
Cons of Stellar Lumens
❌ No mining rewards
Unlike Bitcoin (BTC) and other cryptocurrencies which are mined and has resulted in several millionaires in the process, Stellar Lumens (XLM) does not offer that service because it does not use Proof-of-Work or its related algorithms.
❌ Focused on growing its network (Stellar) and not cryptocurrency (XLM)
The cryptocurrency (XLM) does not thrive on the forces of demand and supply but on the performance of BTC and positive market sentiments for all cryptocurrencies. It thrives on the adoption of its blockchain network (technology) by well-established institutions to increase in price. As a result, XLMs have not been adopted by major retailers like Bitcoin (BTC), Bitcoin Cash (BCH), Dash (DASH) and Dogecoin (DOGE) have.
Stellar Lumens (XLM): Will It Be a Good Investment in 2021?
As an investor, in order to understand whether XLM will be a good investment for a particular year, you must do a thorough assessment of the asset’s performance in the previous years.
As per data retrieved from CoinTelegraph, on the 1st day of January 2018, XLM had a price of $0.5560, went through a bearish period and closed the 2nd quarter of the year (June 2018) with a price of $0.1998 and eventually closed 2018 on December 31, with a price per coin of $0.1157.
In the process, XLM shed 79% of its closing price on the 1st day of 2018 which brought up several questions as to whether Stellar Lumens will collapse on the market in the long term as a result of the bearish outlook for Bitcoin (BTC) which dropped more than 70% in value and the whole crypto finance space.
On the 1st day of January 2019, XLM had a price of $0.1195 and dropped further to a trading price of $0.1056 to close the 2nd quarter of the year (June 2019) and eventually closed 2019 by slipping further to a price of $0.0452 on December 31. In the process, XLM plunged by 62.18% following a bearish trend from the previous year.
As analyst Mike McGlone of Bloomberg indicated, “The best way to describe the market in 2019 is its retracing of last year’s (2018) bear market. It’s in no hurry to take out the old highs—there’s a hangover of residual selling from the parabolic rally in 2017. There’s just a lot of people who bought cryptocurrencies, got way too overextended, who will be responsive sellers”.
On the 1st day of January 2020, XLM had a price of $0.0436, made gains by closing at $0.0684 on June 30 (2nd quarter) and eventually ended 2020 with a huge leap in price to $0.1324 on December 31. In the process, XLM made gains of 203.67% which made up for the losses suffered by growth investors who remained bullish and held the digital asset for the long term.
XLM started the 1st day of January 2021 with a trading price of $0.1276 and the crypto coin is currently trading at $0.3777.
Stellar Lumens (XLM) has returned 187.08% Year-To-Date which shows a pattern of long term growth for investors.
Such consistent performance in terms of an increment in the valuation of the cryptocurrency has made several experts forecast positive price patterns for XLM.
Analyst Rayne Harris of Ripple Coin News has opined that XLM will stay above its opening price for the year and trade between $0.35 and $0.50 in 2021.
The analyst forecasts long-term growth potential for the asset in case BTC continues to perform smoothly like it has in 2021 which has had a tremendous impact on the price of other altcoins.
He sees XLM reach at least $5 by the end of 2025, so any investment made in 2021 will surely result in long-term gains.
Mega Crypto World as a result of XLMs performance in 2021 remains optimistic about its price prospects for the remainder of the year.
The online portal which provides cryptocurrency news, forecasts XLM to have a trading price of $5.10 by the end of 2021.
It attributes such huge expectation to consistency in the performance of all cryptocurrencies and a boom of investor interest in the decentralized world of finance.
Crypto Rating, however, has been a bit modest in its approach of XLMs trading price in 2021. The rating agency believes the crypto coin will maintain its price range and end the year with a price of $0.46.
Experts at Prime XBT see a growth potential for the digital asset in 2021 and beyond. In its prediction of XLM, it gave out some technical analysis.
Prime XBT “Has seen the trading pair, XLM/USD breakout aggressive of an inverse head and shoulders pattern as well as a falling wedge pattern. The two bullish reversal patterns combined have resulted in a rapid rise from low back to all-time highs”.
The award-winning trading platform which allows you to trade global markets which includes cryptos believes the “high” in the technical analysis could be for 2021.
The online trading platform sees XLM re-testing its all-time high of $0.9381 which could see the digital asset surge towards the $1 price milestone to end the year.
Analyst Arslan Butt of FX Leaders sees bullishness sweeping over XLM in 2021. He has opined strongly that by the end of the 2nd quarter (June), XLM will trade per coin in the price range of $0.6065 and $0.8105 based on drivers, a weak dollar and a symmetrical triangle.
The analyst who writes for the online portal which is the home of forex traders (provides best forex signals, trading news and marketing analysis) foresees XLM trading in the price range of $0.8105 and $1.2609 to close out December 31.
He attributed these positive forecasts to Moving Average Convergence Divergence (MACD) and Exponential Moving Average (EMA) which will cross above its signal line.
Analyst Tortsten Hartmann of Captain Altcoin sees XLM relying on positive market sentiments for the whole crypto space primarily the performance of Bitcoin (BTC) and investor interest in the new world of decentralized finance (DeFi) which will see it trade below $0.50 at the end of 2021.
In the long-term, the analyst sees XLM having great potential if it accomplishes all its roadmaps particularly partnerships and integrations which results in extensive real-world use cases and making a run towards at least $6 before 2030.
The Long Forecast has joined the discussion as to whether XLM will be a good investment in 2021 and has joined other experts on confirming the positive price pattern for the cryptocurrency.
As per its long-term forecasting valuation model, it projects XLM to grow and reach at least $0.49 at the end of 2021.
Monetize Info sees a rally in the coming months and feels Stellar Lumen (XLM) would trade between $2 and $3 in 2021 if one of the key elements in its roadmap for the year “growth of the number of entities building on Stellar” (partnerships) is achieved.
Positive market sentiment for the cryptocurrency space in the financial markets is significant in the price patterns of all coins.
As per the statistics and analysis (fundamental and technical) given by experts, XLM is poised to increase in 2021 and it’s a great investment any trader or investor may consider having on their portfolios for the long term.
Don't Miss: Stellar Price Prediction Forecast
What Are the Drivers of Stellar Lumens (XLM) Price?
As a trader or investor, one of the significant factors Trading Education as an e-learning organization would like you to consider as a driver of a crypto asset’s price is primarily the performance of parent crypto, Bitcoin (BTC).
This is because a positive price pattern in Bitcoin (BTC) increases the valuation of the digital gold to a range that cannot be met by novice or expert investors with small cap in terms of investment funds.
As a result, as Senior Producer for 9news in Australia, Stuart Marsh puts it “There are several investors who missed out on the last crypto surge and are looking for the next Bitcoin (BTC). As Bitcoin surges, cryptocurrency investors are looking for the next golden goose”.
This golden goose comprises altcoins such as Stellar Lumens (XLM).
Evidently, as per detailed information retrieved from Coin Telegraph and Coin Market Cap, Bitcoin (BTC) started the 1st day of 2017 with a trading price of $1,017 and closed the year with a trading price of $13,445. In the process, BTC returned gains of 1,222.03%.
Stellar Lumens (XLM) started the 1st day of 2017 with a trading price of $0.0025 and closed the year with a trading price of $0.4840. In the process, XLM returned gains of 19,260% for investors.
Bitcoin (BTC) started the 1st day of 2018 with a trading price of $14,754 and closed the year with a trading price of $3,880. In the process, BTC saw a 73.702% decrease in price.
Stellar Lumens (XLM) started the 1st day of 2018 with a trading price of $0.5560 and closed the year with a trading price of $0.1157. In the process, XLM saw a 79.1906% decrease in price.
Bitcoin (BTC) started the 1st day of 2020 with a trading price of $6,966 and closed the year on December 31 with a price per coin for $29,389. In the process, BTC returned gains of 321.892% increase in price for investors.
Stellar Lumens (XLM) started the 1st day of 2018 with a trading price of $0.0436 and closed the year on December 31 with a price per coin for $0.1324. In the process, XLM saw a 203.67% increase in price for investors.
Bitcoin (BTC) has so far returned 100.50% gains Year-to-Date while Stellar Lumens (XLM) has so far returned 238.43% gains Year-To-Date for investors.
Over the last five years, with the exception of 2019, where the cryptocurrencies went in opposite directions with BTC bringing gains and XLM registering losses for investors, Stellar Lumens most often follow the positive and negative price patterns of the parent crypto.
Looking at the data presented, BTC's surge has been invaluable to XLM's surge in 2021 and as a trader or investor, do all you can to monitor the two (2) assets as you make moves in the financial market.
Such a connection is what has made Prime XBT forecast a potential low trading price of $2.35 and potential high trading price of $10 for XLM between 2023 and 2025.
Image: Prime XBT
Another factor you should consider is crypto assets SCALABILITY. One of the most unique aspects of the Stellar Network is its incredible speed.
As one of its primed objectives and one of the issues associated with the adoption of blockchain technology, Stellar (XLM) aims to see a reduction in the time and transaction costs of the decentralized world on its network.
Bitcoin (BTC) has its longstanding SHA-256 proof-of-work algorithm, Ethereum 1.0 employed the same algorithm but has made a change on its Ethereum (ETH) 2.0 platform which employs a proof-of-stake algorithm, Cardano (ADA) employs an Ouroboros algorithm, Litecoin (LTC) and Dogecoin (DOGE) uses SCRYPT but Stellar since its founding in 2014 employs the Stellar Consensus Protocol (SCP).
The SCP helped make XLM an open-source system and under this protocol, a select set of trustworthy nodes is tasked with the process of transaction authentication.
This system is extremely different from protocols of other cryptocurrencies where transaction authentication is left open to the whole network of nodes.
A set of trustworthy nodes is at the disposal of each node in terms of selection. Once all nodes which are part of the select group (trustworthy nodes) are authenticated, transactions can be considered as approved.
According to Will Kenton of Investopedia, “This shortened approval cycle allows the Stellar network to process transactions faster and keep transaction costs lower”.
The Stellar Network can settle cross-border payments in a matter of seconds - transactions which on the traditional level take from a few days to a week to approve.
This is because it has to pass through clearing houses, insurance companies or banking institutions (intermediaries).
With an average transaction fee of $0.000004 and a network which is capable of running 1000 up to 5000 transactions per second (TPS), Stellar Lumens (XLM) transactions per second is 50 to 250 times faster than Ethereum (ETH) and 100 to 500 times better than parent crypto, Bitcoin (BTC).
Such on-demand transactions will lead to more adoptions by business organizations and other central governments since the new world is gradually warming up to the idea of cryptocurrencies and blockchain technology.
Wallet Investor has opined strongly that Stellar Lumens (XLM) is poised to increase by 67.37% in a year’s time and sees XLM trading in the price range of $0.392 and $0.631 by the end of 2021.
Image: Wallet Investor
Wallet Investor also sees XLM as more of a long term investment with long term benefits and pegs its five (5) year price at $1.147.
XLM is also STORE OF VALUE. Like Bitcoin (BTC), there is a finite supply of XLMs which is currently capped at 50,000,000,000.
These XLMs cannot be mined or awarded by the cryptocurrency.
As a result, holding loads of XLMs in the near future when it becomes scarce means sellers can offer it for any price buyers are willing to pay.
Moreover, Stellar Lumens (XLM) has a RANGE OF PARTNERSHIPS driving its price.
One of such partnerships is with TransferTo (a cross-border mobile payments network which serves emerging markets and interconnects digital financial service providers with financial institutions globally.
The main purpose of this partnership is to employ Stellar’s technology to effectively enhance the way through which money is sent and received across borders. Stellar’s innovation will help users of the TransferTo service to send and receive money to more than 70 countries.
Speaking of this partnership, TransferTo’s Chief Customer Officer (CCO), Aik-Boon Tan said “We always aim to be at the forefront of the payments industry, and by partnering with Stellar, our goal is to trial the blockchain technology and scale our cross-border payment service to better serve our partners and reduce costs”.
Director of Partnerships at Stellar.org, Lisa Nestor opined of this partnership, “We are thrilled to be partnering with TransferTo to offer an expanded network for our current and future partners, as well as continue to drive greater financial inclusion for the under-banked”.
TransferTo currently links more than 4 billion mobile users across more than 400 mobile operators and that gives Stellar Lumens (XLM) leverage over other cryptocurrencies, particularly, Ripple (XRP) which also operates by providing software solutions for effective and efficient cross-border payments.
This real-world case usage certifies the authenticity and scalability of the asset and more well-established business organizations will opt for XLMs technology which would improve the overall valuation of the cryptocurrency in the long-term.
Stellar has also partnered with ICICI Bank. ICICI Bank is a leading private sector bank in India, which offers net banking services and personal banking services like Accounts & Deposits, Cards, Loans and Insurance through a variety of delivery channels and its group of companies.
ICICI Bank partnered with Stellar to use its blockchain network to power and support both domestic and international money transfer. The outcome of this union is ICICI Bank launched a Stellar-based cross-border payment channel minus the conventional wire transfer fees.
Stellar’s near zero fees on its blockchain has been invaluable in winning several partnerships. The sheer interest of a traditional banking institution migrating from the old technological system to here-and-now technological solutions provided by Stellar improves the credibility and operational capacity of the blockchain. This would spur on the adoption process and see more real-world use cases.
Other partnerships include a Philippines-based mobile financial services provider, Coins.ph, a French remittance service provider (Tempo Money Transfer) and a pan-African financial platform called Flutterwave.
Another real-world use case which is an integral partnership of Stellar is its association with International Business Machines Corporation (IBM) which has existed since October 2017.
IBM approached Stellar with an open-source mindset and one of the features of this partnership is the use of Stellar’s Lumens (XLM) along with the blockchain technology in the South Pacific.
IBM always looked forward to working with several banks in the South Pacific region to help facilitate cross-border transactions processed over its blockchain network in real-time.
Stellar Lumens (XLM) comes in to serve as an intermediary between sender and receiver and in doing so; it helps with the improvement of cash flow inefficiencies between payers and payees.
In 2016, Deloitte (one of the best accounting firms globally) which has done extensive research about the potential of blockchains and how its full functionality can be invaluable to the efficiency and effectiveness of business organizations in terms of scalability, announced a venture into blockchain technology.
The Stellar Development Foundation was mentioned as one of the blockchains they were going to employ for their services as it provides new technological capabilities to its global financial institution client base.
These partnerships have contributed extensively to XLMs performance over the years and Digital Coin Price sees a great potential for the crypto asset in 2021 and the years ahead.
The online portal which provides cryptocurrency price chart and prediction foresees an increment in the price of XLM to $0.5274 by the end of 2021 and a bullish run to $1.85 in the long term as at the year’s end in 2028.
Check Out: What Will Drive The Stellar Price in 2021?
Will Stellar Lumens (XLM) Continue to Soar?
As per the price forecasts of Previsioni Bitcoin, XLM could continue to soar. The online portal which provides cryptocurrency news and prediction sees XLM soaring to a price of $0.77 by the end of the 3rd quarter and crossing the $1 price milestone to a close on 31st December 2021 with $1.05 trading price.
In the last six months, Stellar Lumens has gotten some new partnerships that would boost its growth and see it soar proportionately in the long term.
On Monday, January 4, 2021, it was announced that the Ministry of Digital Transformation of Ukraine and the Stellar Development Foundation (SDF) is in a partnership that will see the cryptocurrency company help Ukraine build a national digital currency.
A memorandum of understanding (MOU) was signed to formalize the whole process.
In a statement, Olesksandr Bornyakov, Digital Transformation and Information Technology Deputy Minister said of this partnership “The Ministry of Digital Transformation is working on creating the legal environment for the development of virtual assets in Ukraine. We believe our cooperation with the Stellar Development Foundation will contribute to the development of a virtual asset industry and its integration into the global financial ecosystem”.
Denelle Dixon who serves as the Chief Executive Officer of Stellar Development Foundation said of the partnership “We’ve been in conversations with governments and institutions all over the world about the key considerations for issuing central bank digital currency (CBDC). It’s important to remember many, if not all, of these organizations weren’t designed to be technology companies and that they have many audiences that they are supporting. That makes a public-private partnership so essential to getting this right.”
What won this partnership for Stellar was its unique feature algorithm which is called Stellar Consensus Protocol (SCP).
As per the words of the Chief Operations Officer of Stellar, Jason Chlipala, SCP provides unique certainties to issuers they would not find in other blockchains.
Evidently, from the time of the announcement on January 4 which saw XLM close at $0.1935 to its current trading price of $0.4005, there has been a 106.977% increase in price of the digital asset.
Another partnership which has made waves in the crypto finance space is Stellar’s partnership with Bankhaus von der Heydt and Bitbond.
On 9th December, 2020, it was announced on the social media handle (Twitter) of Stellar, @StellarOrg, “We are thrilled to announce that @Bitbond and Bankhaus von der Heydt are now issuing Euro Stablecoin (EURB), the first stablecoin issued directly by a banking institution on Stellar”.
Bankhaus von der Heydt (BVDH) is one of the oldest banks in the European Union having been in operation since 1754 while Bitbond is one of Germany’s leading tokenization and digital asset custody technology providers.
This partnership helps customers of BVDH as well as third party developers of financial applications to leverage EURB to help settle on-chain digital asset transfers.
EURB is now live on Stellar and Bitbond has integrated it into the platform it built for BVDH to use the stablecoin (EURB) for securitization which includes several mechanisms for minting and burning the token.
With this, any individual or business organization in the European Zone which wants to connect to Stellar can do so with the EURO fiat currency.
Speaking of the partnership, the Managing Director of BVDH, Philipp Doppelhammer added that "We were drawn to Bitbond and Stellar due to the ease in which assets are issued and managed on the network”.
Chief Executive Officer (CEO) and Executive Director of the Stellar Development Foundation, Denelle Dixon added that “This is a testament to the ways that traditional banking and blockchain can work together, bringing together one of the oldest banks in Europe with a Financial Technology (FinTech) start-up to deliver exciting innovation in the digital currency space”.
By adding such a well-respected financial institution which has been operating for the last 260 years is extremely meaningful to the users and builders on the Stellar Network.
Such partnerships go a long way to power up a new wave of financial innovation in the whole digital finance space and bring up more business organizations to the feet of Stellar Lumens (XLM) to help them provide business solutions to their clients in a fast and low-cost manner.
Real-world adoption leads to new and improved use cases which reflect positively on the valuation of the asset.
Evidently, from the time of the announcement on December 9, where XLM was trading per coin for $0.1607 to its current trading price of $0.4005, there has been a 149.222% increase in the price of the cryptocurrency.
3commas has predicted a long term growth for XLM which is a plus for long-term investors.
The online platform which aims to make crypto trading easy foresees XLM trade for a coin at an average price of $0.991, a minimum of $0.84235 and a maximum of $1.13965 by the end of 2025.
So, Is Stellar Lumens (XLM) a Good Investment?
Analyst Sheldon McIntyre of FXStreet as per his analysis has seen Stellar Lumens meeting several resistances between $0.49 and $0.52 before breaking out to new price zones.
The analyst who writes for one of the great financial news outlets sees XLM as a good investment and “If all the resistance levels are overcome, XLM price should test the yearly high of $0.61 to close out 2021”.
As part of its roadmap which is released to the general public annually, Stellar Development Foundation would be making several updates.
One of the most important updates is called HORIZON 2.0 and this will utilize fewer resources which would not change the course of the current blockchain.
In the process, it would go a long way to boosting the efficiency of the Stellar Network as well as see several improvements in terms of flexibility.
Stellar is a great investment for the future as it keeps adding up more partners which expose the cryptocurrency to other categories of blockchain through FLARE.
On 25th February, 2021, Flare announced via social media platform (Twitter), @FlareNetworks that “Flare will be integrating $XLM as an F-Asset, bringing XLM to scalable smart contracts and a trustless gateway to #Stellar. Decentralization is far too important for maximalism. Ecosystems must be united, @stellarorg #UnlockingValue”.
Based on the Flare Consensus Protocol (FCP), Flare is a new blockchain network. Flare primarily acts as a bridge for cryptocurrencies which are not compatible with Ethereum.
This means that Stellar Lumens (XLM) will be exposed to decentralized finance (DeFi) projects like Uniswap (a decentralized exchange on Ethereum) since users will be able to create XLM-backed tokens and use those tokens on the Ethereum Network.
All this would be made possible through the Network of Flare where XLM will be used as an F-Asset since Flare’s Network allows all investors to transform selected cryptocurrencies into bridge tokens.
The main area of interest in the financial world with regards to the decentralized world is decentralized finance (DeFi).
With over $44 billion locked up in DeFi projects, XLMs exposure to decentralized products through Flare as a bridge will go a long way to improve its use cases.
Aside the Network scaling faster and being adopted by well-established institutions, seeing XLMs adoption on other Networks such as Ethereum which is labeled as the “king” of DeFi will in the long term increase the volume and capitalization of the cryptocurrency and bring gains to investors.
The exchanges which lists XLM coupled with its partnerships in 2021 which exposes it to DeFi as well as consistent updates on the Network will see Stellar hit $7.31 in 2030 and could break the $10 price milestone by 2040, are the prediction of 3Commas.
Price Prediction for Stellar Lumens (XLM) in 2021 and Beyond
CoinPedia sees a bullish trend for XLM which will close at most $1.35 by the end of 2021.
Digital Coin Price forecasts XLM to trade at $0.5274 in 2021, $0.7378 in 2022, $0.73108 in 2023 and $0.93056 in 2024.
Image: Digital Coin Price
The online news portal which provides accurate crypto market analysis and data sees XLM start 2025 at a price of $0.9634 and close the year with $1.19, increase slightly in the following years which stand at $1.47 in 2026, $1.47 in 2027 and $1.85 in 2028.
3Commas forecasts XLM to have maximum prices of $0.52 in 2022, $0.65 in 2023, $0.75 in 2024 and $0.95 in 2025.
Previsioni Bitcoin has opined that international acceptance of cryptocurrencies in general and adoption by several companies through XLMs numerous partnerships will see it close the year with a trading price of $0.67.
Coinliker is extremely bullish in its prediction of XLM and feels “As time goes on, if the Stellar Network evolves and there is a growth in adoption, XLM could be a great investment”.
The online portal which compares market prices of cryptocurrencies see an increment in the price of the crypto asset to $0.634958 by the year’s end of 2021, $1.11 by the end of 2024 and cross a price milestone of $3 and end 2026 with a trading price of $3.62.
Coin Switch views Stellar Lumens (XLM) as an asset with long term potential. The crypto news portal believes partnerships particularly with IBM (with IBM's new partnership with the government of Australia) will see more exposure for Stellar’s technology as well as its currency on a global level.
Coin Switch therefore predicted with certainty that “Whatever happens, Stellar will certainly touch the $1 mark by 2025, in fact, we are predicting XLM to reach $1.14 by the end of 2025”.
Analyst Arslan Butt of FX Leaders forecasts a trading price range of $0.8105 to $1.2609 for XLM in 2021 and will go through a bearish season and correct back to a trading price of $0.8105 in 2024 with price drivers (weaker dollar, bullish engulfing, symmetrical triangle breakout, MACD & EMA Support, 161.8% and 227.20% Fibonacci extension and overbought indication and bearish correction).
According to Trading Beasts, XLM will be trading at a minimum of $0.4519200 and a maximum of $0.6645882 by the end of 2021.
The online portal for financial news and price forecasts foresees XLM with an average trading price of $0.6104025 as at the year’s end of 2022; revert back to an average price of $0.5701452 by the end of 2023 and increase slightly above 2022’s trading price and close December 31, 2024 with a price of $0.6657355.
Is It Worth Buying Stellar Lumens (XLM)?
According to Digital Coin price, XLM is worth buying. The online portal for cryptocurrency news, guides and reviews believes Stellar Lumens will finish above its current trading level and close 2021 with a $0.52 trading price, $0.73 in 2022, $0.73 in 2023, $0.93 in 2024, and $1.19 in 2025.
Captain Altcoin sees gains for growth investors and predicts XLM to hit the $5 price milestone by the end of 2026.
In 2021, through its parent organization, the Stellar Development Foundation (SDF), there are several partnerships such as creating a cryptocurrency for the government of Ukraine to use as its official digital currency, liaison with Bankhaus von der Heydt and Bitbond (Germany’s powerhouses in the financial industry) and being exposed to the world of decentralized finance (DeFi), where XLM users will be able to convert their crypto coins into tokens using FLARE (a blockchain technology) as a bridge to explore DeFi products such as decentralized lending and exchanges.
Such partnerships bring mileage and a leverage to Stellar Lumens over other cryptocurrencies and networks and help cement its status as an open source network which aims to settle cross-border transactions in a fast manner which includes low costs.
All these associations, integrations and partnerships will in the long-term, increase the valuation of the digital asset. Coin Switch has joined Captain Altcoin in long term bullishness of the asset.
Coin Switch sees XLM touch $5 by 2025.
Should I Invest in Stellar Lumens (XLM)
Analyst and Editor, Rayne Harris of Ripple Coin News has opined that now is the time to invest in XLM in order to reap future rewards.
The analyst who reports for the online news portal which brings fresh news and content regarding cryptocurrency markets and the latest developments in the world of blockchain technology forecasts XLM to trade between $1 to $1.40 in 2023.
Rayne Harris sees a growth in the coin if there is positive market sentiment for cryptocurrencies, particularly, Bitcoin (BTC) which will lead to a growth in other altcoins which includes XLM and forecasts a trading price range of $2.45 and $2.70 in 2024 and $5 by the end of 2025.
One of the best accounting firms, Deloitte conducted a series of research with a primary focus on the adoption of blockchain technology and reached a conclusion of several business organizations finding flaws in the technology with regards to its scalability (speed of processing).
In the last four years, Deloitte adopted Stellar’s Network to be able to meet the demand of its 22,000 member firm partners and industry professionals in over 45 countries.
This signals Deloitte’s acceptance of Stellar as the network which can scale faster and process more transactions at a relatively lower cost.
Other well-established businesses such as IBM, TransferTo and Western Union use Stellar’s technology to be able to provide fast transactions to several parts of the world in a matter of seconds.
Thanks to Stellar Lumens (XLM), a process which could take days and was expensive and time-consuming is now inexpensive and fast.
Does Stellar Lumen (XLM) Have a Future?
There are several assets which do not have a roadmap on how its future is going to be; fortunately, Stellar Lumens (XLM) has one.
In 2021, Stellar Development Foundation (SDF), the core team behind the development and promotion of XLM released key milestones the cryptocurrency company aims to achieve before the end of the year. The milestones are:
- Support robustness and usability of Stellar. Under this, SDF looks forward to attracting and maintaining new stakeholders and high-quality validators to the network. Overall, it will ensure the usability, scalability, security and robustness of the network to give invaluable support to all existing and future use cases.
- Help Stellar be the blockchain people know and trust. SDP looks forward to participating in Financial Technology (FinTech) conferences and programs worldwide by pointing out appropriate solutions needed which would spark a growth in the adoption and eventually, overall valuation of Stellar.
- Foster and develop sustainable Stellar use cases for cross-border payments and securitized assets. “SDF looks forward to fostering user cases which have clear value for end users which can demonstrate a path to a viable business model”.
- Fostering a diverse, open and supportive culture at Stellar Development Foundation (SDF). SDF will welcome all ideas for improvements in the network and provide products and services which reflect the real needs and interests of the regions we seek to support.
These roadmaps have started being operational since several partnerships Stellar has formed in 2021 are ongoing.
Stellar’s deal with the Ukraine government to help build a cryptocurrency for the country and financial institutions in Germany (Bitbond and Bankhaus von der Heydt) opting to use Stellar since its blockchain provided unique features of scalability and lower transactions fees which they could not find in other networks signifies dominance in the technological solutions space.
The cryptocurrency organization is determined to go length and breadth to achieve its goals and keep its technology in operation for the foreseeable future.
There are several crypto organizations which do not have any form of representation. Stellar has its development foundation which is a non-profit organization which was founded in 2014 and operates in Delaware, United States.
It plays a primary role of supporting the development and growth of the open-source Stellar Network.
In terms of trading, Wallet Investor sees Stellar Lumens with 439.79% earning potential in one year and a future price of $2.035 as of the year’s end in 2026.
Is Stellar Lumens (XLM) Dead 2021?
Stellar Lumens is NOT dead in 2021. XLMs are being traded live like all cryptocurrencies, 24 hours a day and 7 days a week on major cryptocurrency exchanges and brokers such as Binance, Huobi Global, OKEx and eToro.
The largest crypto asset management trust, Grayscale has made a $15 million investment in over 35,000,000 XLMs in 2021.
Aside from this, the government of Ukraine has employed the service of Stellar Development Foundation (SDF) which is the core team behind the cryptocurrency.
This partnership will see SDF create a national digital currency for the country to help process digital transactions in a relatively lower time.
With several partnerships with financial companies in Europe and several roadmaps which will see Stellar bring more users to its network and cryptocurrency, Lumens is alive and it’s poised to overtake Ripple (XRP) as the main protocol and asset of interest in the cross-border transaction space.
Wallet Investor predicts an increase in XLMs price from $0.631 to $0.875 in a one-year period.
Can Stellar Lumens (XLM) Reach $100?
Stellar Lumens could reach $100 in the long term if an investor decides to hold the digital asset for a foreseeable future.
Currently, there are no price forecasts from crypto market experts and gurus with regards to XLM reaching that price milestone.
With that said, due to the volatility of cryptocurrencies, anything can happen.
If someone said Bitcoin (BTC) will cross $35,000, $40,000, $45,000, $50,000, $55,000 and $60,000 even in the crypto boom period of 2017 and 2018, no expert would have believed it.
Today, the digital gold trades between $60,000 and $65,000 which is miles ahead of the current investment goals of skeptics and novice investors.
As a result, no one knows the true potential of XLM until a rally begins.
XLM is slightly like Bitcoin as it serves as a store of value. It cannot be mined or burned and currently there are only 48% in circulating supply which is represented by 24.20B XLM on a maximum supply of 50,001,802,659.
If the remaining 52% are purchased in the next years to come, the basic laws of economics will be triggered.
Considering Stellar Development Foundation achieves all its aims which see its network obtain 100% functionality which brings in more real world partnerships and usages, XLMs will become scarce.
In the process, buyers will have to purchase XLMs at prices set forth by sellers which could trigger an extensive bullish run to $100.
For the time being, as an investor, you can buy thousands or millions of XLMs and hope there would be a crypto boom in the near future or more institutional investments in the short-term which will trigger the price with what happened to Bitcoin (BTC) in keen perspective.
Is Stellar Lumens (XLM) a Millionaire Maker?
Prime XBT sees XLM trading at a potential high of $10 between 2023 and 2025. With an eye on this prediction, Stellar Lumens (XLM) COULD become a millionaire-maker depending on the number of XLMs you have in your wallet which will be multiplied by the asset’s trading price.
Remember, the stressed word here is “could” which under investment terms mean “it is possible”. Cryptocurrencies are highly unpredictable, read on to understand the permutations and conditions which need to be met for you to become a millionaire by investing in Stellar Lumens (XLM).
2021 is the year for cryptocurrencies and the world of DeFi since the industry has bounced back well after the whole financial markets fell to its knees during the March lows.
As at the time of writing, Stellar Lumens (XLM) was trading at $0.42 which makes it relatively cheaper when compared to Ethereum (ETH) and Bitcoin (ETH) - which may be out of reach for several investors as per their investment goals.
For you to become a millionaire, you must know that trading and investing in any form of assets deals with risk as the primary factor and simple mathematics.
At the current price, owning 500,000 XLMs with a view on the long term can see you become a millionaire if Stellar Lumens (XLM) increases to the trading price predicted by Prime XBT of $10.
500,000 XLMs multiplied by $0.42 will set you back $210,000.
At a new trading price of $10 in the future, your 500,000 XLMs will be multiplied by $10, which will result in $5,000,000, a return of 2,280.95% gains.
Should XLM increase to a trading price of $2, in the future with 500,000 XLMs purchased for $210,000, the returns will be 500,000 XLMs multiplied by $2, which will result in $1,000,000 (a return of 376.190%).
As a result of BTCs performance which led to Ethereum (ETH), Binance (BNB) and Tron (TRX) hitting new all-time highs in 2021, every investor is looking for the next golden goose.
According to experts XLMs price is going to be increased based on its partnerships and integrations. This is because many analysts see XLM as an asset with a long term potential that will bring long term rewards.
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Virtual currencies are highly volatile. Your capital is at risk.