Is Stellar Lumens (XLM) Worth Buying In 2022?

Last Updated January 13th 2022
8 Min Read

Should you be investing in Stellar Lumens in 2022? Even more importantly, what makes Stellar Lumens worth buying? Well, to long-term investors, it could be the practicability and burgeoning use case of its blockchain technology, which ensures the coin continues appreciating in value. Short-term traders are, on the other hand, probably drawn by its volatility that ensures they keep profiting from its unpredictable prices.  

But the fact that you are here says that you are still looking for more convincing reasons as to why you should consider adding XLM to your crypto portfolio.

Read on, and we will tell you everything you need to know about buying stellar Lumens (XLM) in 2022.

We will tell you why Stellar Lumens is such a hot topic right now, go over such factors as whether and why you should buy Stellar Lumens today, and also highlight key risks that come with owning Stellar lumens.

By the end of the guide, you should be able to tell if Stellar Lumens coins are a good addition to your crypto portfolio or not.

Let us start by understanding what Stellar Lumens is.

What Is Stellar Lumens (XLM)?

Stellar Lumens (XLM) is a first-generation cryptocurrency. It launched in July 2014 and is specially designed to provide the unbanked and underbanked with access to financial systems and facilitate seamless cross-border payments.

The creation for the Stellar Blockchain had, however, started in 2013, spearheaded by Jed McCaleb - the Mt. Gox exchange founder and Ripple blockchain co-founder.

According to Jed, Stellar is dedicated to eliminating the bureaucracy and the often high costs associated with modern money transfer systems. It was among the earliest cryptocurrency projects ever built, and this, as well as the reputation of its founding team, has given it a first-mover advantage, especially in the field of cross-border transaction processing.

According to Jed, modern monetary transactions are often tied down by many bureaucratic procedures. And this has the net effect of not just pushing 0. up cash transaction costs but also locking a significant portion of the citizenry out of the global financial system. The stellar blockchain network is dedicated to eliminating this bureaucracy and keeping the transaction costs at a minimum.

Since its launch, the company has attracted a lot of support from different finance industry players, technology companies, and even governments from across the world. Some have already launched cash transfer programs on their Stellar network, and most are in the process of building or testing their Stellar blockchain-hosted programs.

But what draws these parties and cryptocurrency investors into Stellar blockchain and Stellar Foundation?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Why Is Stellar Lumens (XLM) So Popular Right Now?

What makes Stellar Lumens popular? From an institutional point of view, it has to be the practicability of its vision, the ready market for products developed on the Stellar Blockchain, and the ease with which they can create and launch successful financial services from Stellar Network.

From an investor’s point of view, it has to be a huge potential for the growth of its products and their relatively low price today, which makes investors question if they may be undervalued.

In the close to eight years that Stellar Lumens has been around, it has had some of the biggest financial and technological behemoths either building or thinking about building on its network. These include IBM, TechCrunch, ICICI Bank of India, Flutterwave, Deloitte, and Oridian Bank of Nigeria. Importantly, Stellar is working alongside the Ukrainian government towards developing a national digital currency.

Despite the many and often savagely violent price volatilities and market shocks that have visited Stellar Lumens it has been able to maintain an uptrending graph line for its prices. At the current price of $0.28, Stellar Lumens (XLM) is up by more than 23,465.57% from its all-time low - with as much as 125% gained by the end of 2021.

Are these convincing enough to ensure you make you invest in Stellar Lumens?

Check Out: Could Stellar Be A Millionaire-Maker Coin?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Should I Buy Stellar Lumens?

When deciding whether or not to invest in Stellar Lumens, consider your crypto investment goals, risk tolerance, and investment capital at hand.

Remember that all cryptocurrencies, Stellar Lumens included, are hugely volatile and their prices unpredictable. You must, therefore, be certain that you can stomach steep price drops and uninspiring price action.

The cryptocurrency, for instance, dropped from an all-time high of $0.938 in January 2018 to trade at $0.18 in less than four months and traded within this price range for more than two years. In fact, it was not until February 2020 that Stellar Lumens traded above $0.5.

This tells you that buying XLM coins certainly is not a get-rich-quick kind of investment. But the fact that it is always up trending and it always rises (no matter how long the depressed price action takes), says it can also turn you into a super-rich crypto hodler - if you time your purchase right (buy at the dip) and hold on to these coins long enough.

Does this make Stellar Lumens worth buying in 2022?

So, Is Stellar Lumens (XLM) Worth Buying In 2022?

The quick answer to this is that Stellar Lumens (XLM) is worth buying in 2022 for long-term investors. Note that while the coin is still popular, the growth of the biggest XLM price influencer - the Stellar blockchain network - is gradual, implying that its coin prices will most likely grow at an equally slower pace.

And, different price prediction experts and technical analysis reports agree with this assessment.  

For instance, a technical analysis report of Stellar Lumens' future price by CoinPriceForecast indicates that the coin value may grow to $0.27 by the end of the year and by more than 262% over the next four years to reach $0.66 by the end of the year 2026.

A similar report by CryptocurrecyPricePrediction website is more optimistic and expects Stellar Lumens to reach $3.83 within the next two years.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Why You Should Buy Stellar Lumens

Still, looking for reasons why you should consider investing in Stellar Lumens (XLM)? Here are our top three:

It is practical: In coming up with the Stellar blockchain and Lumens coins (XLM), Stellar Foundation was looking to address real issues affecting the global finance industry. Its popularity, from whence the XLM coins derive much of their value, can thus be said to be derived from the practicability of its blockchain - just like Bitcoin.

It is expanding fast: As we have pointed out hereinabove, the list of finance and tech industry players have bought into Stellar Blockchain’s dream of revolutionizing the global finance system and reaching the unbanked and underbanked is ever-growing. And by joining the Stellar blockchain, these companies give it credence, which in turn, makes it valuable in the eyes of an investor.

It is always up-trending: You may also want to invest in Stellar Lumens coins because it is always uptrending. This assures you that as much as the value of XLM coins may ‘tank’ and seemingly post depressing price action for extended periods, they will always rise.

Read Also: 9 Reasons Why You Should Invest in Stellar (XLM) Today

Risks Associated With Stellar Lumens Investment

But a Stellar Lumens investment isn’t risk-free, and here the threats that we believe have the greatest impact on the value of Lumens coins:

Volatile and unpredictable prices: Like all other cryptocurrencies, Stellar Lumens’ prices are volatile and unpredictable. They are informed by highly speculative instruments that are hard to read for even the most experienced investors and price prediction tools.

Government interference: Governments have maintained control over how cash is created and distributed in an economy, typically through treasury departments and central banks. Stellar Lumens threatens to disrupt this age-old tradition. It, therefore, is highly unlikely that these governments will surrender control of the banking industry without a fight.

Conclusion

There you go! We hope that this gives a better perspective on Stellar Lumens and helps you decide if the coins are worth buying today.

But before you go. Reread the piece, conduct personal research, and consider working with a crypto expert in making the all-important decision. If, after these three steps, you are still convinced that Stellar Lumens are a good investment, go ahead and place your buy order. 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Read More:

Pros and Cons of Investing in Stellar Lumens

Stellar (XLM) Price Prediction for 2025 and 2030

Will Stellar Lumens (XLM) Make Me Rich?

Should You Buy Stellar XLM?