Is Stellar Lumens (XLM) A Good Buy?

Last Updated January 13th 2022

10 Min Read

Is Stellar Lumens a good investment? If so, what makes a good investment? It would suffice to say that the crypto community is convinced that the value of Stellar Lumens will continue soaring moving forward, effectively making it a must-have for any long-term speculative investor.

After battling a bearish crypto market rally and plummeting prices, crypto experts are convinced that Stellar Lumens is out of the woods and that the altcoin is just starting its recovery journey.

Analysis reports by some of the most reputable price prediction websites have also concluded that if current market conditions persist, Stellar Lumens may rebound to its pre-market crisis and end the year trading at between $0.7 and $2. Others have taken this a step further and are confident that XLM Coin prices will reach $10 in the next five years.

But are there possible explanations to support this supposed price jump? Particularly when you hinge Stellar Lumens' appeal as a good and viable investment on speculative future prices.

We have identified a few that most investors and crypto experts have relied on heavily when making positive price predictions about Stellar Lumens prices.

And we will be highlighting them hereinbelow to support the theory of why XLM coins are a good buy today. We will also tell you how high up these experts expect Stellar Lumens prices to reach and guide you in figuring out how much you should invest in XLM.

First, though, we get a better understanding of Stellar Lumens and its price history.

What Is Stellar Lumens (XLM)?

Stellar Lumens is a first-generation cryptocurrency and the native digital currency for the Stellar Blockchain. Its design borrows heavily from Ripple blockchain and cryptocurrency, as they were both created by Jed McCaleb to revolutionise the global financial system.

The slight difference between the two is that while Ripple focuses on cash transfers between institutions, Stellar takes a bottom-up approach to cash transfer challenges. It is dedicated to eliminating the bureaucracies and expensive fees rigging the transfer of cash between individuals.

Today, Stellar Lumens are trading at $0.28 and are ranked 28th on the CoinMarketCap list of largest cryptocurrencies with a live market capitalisation of $7 Billion.

And looking at Stellar Lumens' potential for growth, the potential use case for its blockchain, and past price performances, you will be right to assume that XLM Coins are grossly undervalued.

In the past, most experts would associate Stellar Lumens' incredibly low prices with its maximum supply of a whooping 100 Billion XLM Coins. But this supply has since been reduced by half, and XLM prices are yet to double their prices, which means that it possibly is just a matter of time before the coin prices catch up with the value of a reduced coin supply.

Now that you are caught up with stellar Lumens mission and current price level, it's time to understand if it is a good investment.

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

Is Stellar Lumens (XLM) A Good Investment?

Despite falling out off the list of most popular cryptocurrencies, Stellar Lumens is still regarded as one of the most promising cryptocurrencies. Further, XLM Coin price predictions - informed by fundamental and technical analysis - are positively bullish about Stellar Lumens' future prices. The long-term trader sentiments towards the cryptocurrency are also a strong buy.

And it would be such a huge coincidence if all these indicators turned out to be wrong.

Some of the fundamental features that experts believe make Stellar Lumens a good buy include:

Positive ROI: Stellar Lumens has always maintained a net-positive return on investment. Launched in 2014 with a listing price of $0.00236, the altcoin currently has an ROI of 6,072.64%+ with 125% accumulated in 2021. And with claims of Stellar Lumens being undervalued growing louder, the coin’s gains more appeal as a viable long term investment.

Increased use case: There is no limit to the number of financial services that the Stellar Network can solve today. For instance, it is being used to facilitate cash transfers in 100+ countries, IBM is using it to create a double pegged stable coin, Ukraine is using it to create a national digital currency, and Saldo is helping migrant workers send help to their families across the world through the rapid transfer and currency conversion services. Put simply, there is an infinite number of things that individuals and companies can do on the Stellar Network. And the addition of each service ups the value of Stellar Lumens coins.

Valuable partnerships/collaborations: Strategic partnerships between Stellar Network and big-name technology and financial giants have also given it credibility. These include Stripe that contributed seed capital to Stellar Blockchain’s creation and launch, and IBM that became the most reputable builder on its network. Google, BlackRock, and Fast Forward were also among the first to believe in its vision and donate towards its creation and launch. Recently, Stellar Lumens received the certification as the first Shariah-compliant blockchain. There is no telling the possibilities that all these open for Stellar Network or the impact they have on Stellar Lumens prices.

Looming upward price correction: Interestingly, even after all these partnerships and the creation of multiple products and services on the Stellar Network, XLM Coins prices haven’t quite reflected the improved value and credibility of the Stellar Foundation. This convinces crypto market watchers that Stellar Lumens (XLM) prices can only go up from here.

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

How Much Should I Invest In Stellar Lumens (XLM)?

The answer to how much you should invest in Stellar Lumens XLM is relative and influenced by such factors as your investment goals, crypto investment experience, and the amount of disposable income at hand.

When you have sufficient crypto trading experience and a deep understanding of how to interpret different market news and events, you can afford to commit significant amounts of your capital to Stellar Lumens. Long-term investors confident that XLM Coins ROI will continue uptrending and posting positive ROI can also afford to invest heavily in Stellar Lumens at the current Stellar Lumens price dip.

Regardless of the amount of disposable cash at hand, however, we advise that you start small and increase your XLM investment amounts gradually as you understand the crypto markets.

Bottom line. Do not invest more than you can afford/are willing to lose.

How Much Could Stellar Lumens (XLM) Be Worth?

At the height of the early 2021 crypto market rally, Stellar Lumens was trading for as high as $0.79. Were it not for the disruption that came later, experts were confident that Stellar Lumens would reach $1 by the end of this month and proceed to hit $10 within the next five years.

Pre-market crisis technical analysis by PrimeXBT, for instance, had indicated that XLM coins might end the year valued at $1, reach $4 by 2023, and rise to $10 by the end of 2025.

Today, PrimeXBT has adjusted its analysis report and is confident that XLM Coin’s rebound will be fast and between 2022 and 2023, the analysis suggests Stellar Lumens prices could shoot to $13 before correcting and settling at around $6 by the end of 2025.

A similar analysis by Wallet Investor aligns with the projected $0.513 XLM coin price by the end of the year. But it differs significantly with PrimeXBT’s assumption of rapid growth and can only see the coin reaching $1.60 by the end of 2026.

Don't Miss: Stellar (XLM) Price Prediction for 2025 and 2030

Should You Invest In Stellar Lumens (XLM)?

Stellar Lumens has all the characteristics of promising crypto investment. It is grossly undervalued, it was developed by some of the sharpest minds in the industry, it has attracted recognition and partnership with some of the biggest names in finance and tech industries, and is constantly expanding its network’s use case.

All factors held constant. Stellar Lumens prices will inevitably go up, which makes XLM the perfect long-term investment.

But there is the slight problem of regulation where investors are worried that the technology may face a lot of push back from governments - similar to Ripple. Moreover, the Stellar network is not unique - in that it is similar to Ripple and its greatest competition yet, Facebook Diem, is still insisting on joining the crypto market.

It is up to you to decide if Stellar Lumens coins promise of growth outweighs potential threats posed by possible regulation and competition. This should be enough to help you decide if XLM coins are a valuable addition to your crypto investment portfolio.

Check Out: Is Stellar A Good Investment And Should I Invest In XLM?

Key Points:

Most investors believe that Stellar Lumens coins are grossly undervalued and will continue uptrending in the foreseeable future.
Analysts predict that XLM coins will recover, reach the pre-market crisis price levels, and possibly break above $2 within the next five years.
Stellar Lumens coins derive the most value from their network’s association and collaborations with big-name finance and technology companies worldwide.
The primary threats facing Stellar Lumens coins future price action is a possible pushback from governmental agencies and competition from such other crypto projects as Facebook Diem (should it ever launch).
The most optimistic Stellar Lumens price prediction is provided by the CryptocurrencyPricePrediction website, whose technical analysis indicates that XLM will trade above $20 in the next 5 years.