The parabolic growth of major cryptocurrencies like Bitcoin and Ethereum has inspired the emergence of smaller altcoins looking to disrupt the financial industry. Stellar Lumen (XLM) is one of those cryptocurrencies that are expected to spike this year after joining the market-wide bull run that started in December 2020 and January 2021.
While the XLM token is currently in a consolidation mode, it is expected to have a major uptrend that will take it through multiple all-time highs this year.
Most Stellar Lumens price predictions hint towards a positive outlook, with most speculators predicting that it might close or surpass the $1 mark by the end of 2021.
The coin is currently trading at the $0.5 mark, having picked up another momentum in April that salvaged it from the March 2021 consolidation. With a market cap of $53.34 billion and a daily volume averaging $3.28 billion, we can safely assume that XLM is on a record-breaking trend that might once again take it to the top of the list by the end of this year.
In this guide, we will be going through the latest Stellar Lumen price predictions in an attempt to gauge whether it will be skyrocketing again or whether the current consolidation is merely a calm before the storm.
Let’s start with understanding what exactly Stellar Lumens are and whether it is a good investment.
What are Stellar Lumens?
Stellar Lumen is an altcoin that is developed and used by the Stellar Network. The coin came into the limelight during the 2017 ICO craze that saw many coins joining the then blooming cryptocurrency bandwagon. It is now ranked as the 14th largest cryptocurrency by market capitalization.
Like most altcoins, Stellar Lumens was created to enable reliable, transparent, and fast cross-border transactions that cannot be achieved with mainstream banks. The Stellar Lumens digital currency is very similar to Ripple, having been created by the same person; Jed McCaleb. Both coins hope to eliminate the bottleneck in current international transactions by making sending and receiving cross-border money faster. In fact, some people believe XLM is an XRP fork.
However, the coins are very different in the way they achieve their goals. While Ripple plans to achieve faster transactions by leveraging financial institutions like banks, Stellar Lumens uses the bottom-up approach by directly helping the unbanked populace enjoy faster international transactions. This makes XLM more of a decentralized digital asset than Ripple’s XRP.
The Stellar Network is a decentralized peer-to-peer framework, with XLM being its native cryptocurrency. It was launched in 2014 and has significantly grown to be a big player in the blockchain technology market. The network has worked over the years to develop a system that will enable its users to send payments almost instantly by using XLM.
While cryptocurrencies like Bitcoin can still do this in about 10 minutes, XLM and other altcoins like XRP think this is too long for the modern era and want to bring the number down to seconds. Although XLM has dropped from its previous all-time high of $0.8756, it is quickly picking up an uptrend momentum and might soon reclaim its former position in the top 10 list of the most popular cryptocurrencies.
Stellar Lumens are not like other coins like Bitcoin, which are mined or awarded to miners. Instead, the 50 billion XLM coins in existence right now were minted during the initial launch of the Stellar Network. This supply was initially 100 billion and set to rise by 1% every year. However, the inflation mechanism was later voted out by the Stellar Lumens Community in October 2019.
The supply was then cut by 50% and capped at 50 billion with no new coins to be added. This created a sense of scarcity that saw the Stellar Lumens price surge. About 30 billion of these coins are used by the Stellar Network to push for the coin’s mainstream adoption, while the remaining 20 billion is traded in various cryptocurrency exchanges and trading platforms.
Like most new coins, Stellar Lumens struggled over the years and only gained some fresh energy at the start of this year when the cryptocurrency market became favourable for all players. If the current uptrend holds, the coin might surpass its current all-time high to hit $1 this year or next year.
Let’s have a quick overview of how Stellar Lumens is performing so far this year.
Stellar Lumens in 2021: Everything You Should Know So Far
Stellar Lumens has resurrected from a humbling low price and now headed towards breaking its former record. Already, the coin has shown a lot of promise this year, and most speculators believe it will end the year on a bullish note.
The Stellar Lumens foundation is doing a lot to increase the value of its token and realize faster adoption. Most of the strategies are outlined in the 2021 Roadmap that was released by the Stellar Development Foundation towards the end of January 2021.
The roadmap outlines three strategic pillars that are expected to make XLM more alluring in the eyes of investors. These pillars are:
- Supporting the growth and usability of XLM
- Developing XLM into a trustworthy project
- Developing sustainable user cases
While the three pillars have different end goals, they are aimed at working holistically to help XLM grow more this year.
The Stellar Network has put a keen focus on transparency to help boost its credibility as a reliable payment framework. After the release of the roadmap, the price of XLM began to rise, with more people betting on its promise.
Apart from the strategies outlined in the roadmap, the coin also hopes to close a number of partnerships, including integration with USD Coin (USDC).
There is also the recent release of Horizon 2.0, a new piece of technology to allow organizations and small developers to deploy Horizon more flexibly and with fewer resources and constraints.
The end goal is to make XLM easier to work with for both developers, partner organizations, and investors. With the Horizon 2.0 technology, Stellar Lumens allows developers to create decentralized applications based on its core technology and further boost its demand going forward.
These new developments will help Stellar Lumens heal from its past losses and grow with more tenacity this year. Before we can predict where the coin is headed, let’s quickly go over its price history.
Stellar Lumens Price History
Stellar Lumens struggled in its early days, much like most of the altcoins that came after Bitcoin. Even Bitcoin itself, being the first cryptocurrency, had a hard time coming into the limelight. However, with this struggle comes growth that is born from doing things differently.
For Stellar Lumens, this difference meant making cross-border transactions for individuals faster, efficient, and transparent. The coin started with a low price of less than $0.2 and went below $0.037 at some point.
XLM has also experienced the volatility that is common in the cryptocurrency market, making it hard to predict its price action. The coin didn’t have much going on until around mid-2018, when it crossed $0.2. It fluctuated between $0.18 and $0.3 for several months, where it struggled to go over $0.3 with no success.
Towards the end of November 2018, XLM dropped to $0.14 then further to $0.11 in early December. It then started 2019 at this point then dropped again to about $0.09 in February. For the rest of February 2019, the price bounced between $0.07 and $0.09 before hopping back to $0.1 in March.
The price played slightly above $0.1 for the most part of April and May 2019. It then started dropping then bottomed out at $0.05 in September before growing again to hit $0.7 by November. Another drop followed that saw the price settle at $0.04 in January 2020 before starting another climb to $0.08 in February. This was again followed by another drop to about $0.03 towards the end of March 2020.
Between April and July, XLM danced back and forth at the $0.4 to $0.9 range, then went back to $0.1 in August 2020. It dropped again and traded between $0.7 and $0.9 until towards the end of November, when it went back to $1, where it stayed for the rest of December 2020.
In January 2021, Stellar Lumens started at a low price of $0.133, then suddenly surged to $0.54 by mid-February 2021. This was in response to the market-wide uptrend that was witnessed at the start of 2021 and partly due to the unveiling of the XLM 2021 roadmap. The price dropped again to about $0.4 towards the end of March before going back up to $0.5 in April, where it currently trades.
Read Also: How to Trade Stellar: A Step-by-Step Guide
Stellar Lumens Price Predictions in 2021
There is already a positive outlook for Stellar in 2021. A lot of industry experts think the price of XLM will shoot this year to cross its current all-time high and maybe attain $1 by the end of the year.
For the most part, Stellar Lumen’s blockchain payment network has been met with plenty of positive sentiments in regard to its efficiency, especially when compared to XRP.
When XRP was sued by the SEC for putting up unregistered security for sale, XLM grabbed the opportunity to show its face and potentially attract eager investors. This, coupled with the 2021 roadmap, has shaped a good future for XLM and make it one of the most promising cryptocurrencies in 2021.
While some speculators believe that Stellar Lumens will struggle to reach $0.7 this year, some think the coin is in a good position to cross $1. As usual, these predictions differ widely and should be taken with a pinch of salt.
CoinSwitch believes that the current bull market with continue until the end of the year and probably next year.
According to CoinSwitch, the price of XLM might reach $0.77 by December 2021 for the short term. For the long term, the platform believes Stellar Lumens will hit $5 by 2025.
While this seems a bit too bullish, the price can be reached if XLM does not slow down the momentum that it picked up at the start of the year.
Wallet Investor has a less bullish forecast and predicts that XLM will finish the year at around $0.632. This price might, however, be achieved in the next few months if Stellar Lumens get a catalyst to push it out of the current price stagnation.
At the current price, Stellar XLM will only need a slight bump to hit $0.6. Wallet Investor also gives a yearly high of about $0.743 by the end of 2021, which is close to CoinSwitch’s average price for the same period.
Long Forecast gives an optimistic and rather interesting prediction for XLM in 2021.
The platform is the only in this list to predict that Stellar Lumens will cross $1 in 2021. According to the price analysis site, XLM might be trading at around $1.02 by August this year.
Stellar Token might surpass its current ATH and trade at $0.88 in July, then go to $1.02 in August before dropping again to $0.86 in September 2021. Long Forecast predicts that XLM will then trade above the $1 mark in October and November before dropping to $0.9 in December 2021.
Long Forecast’s predictions might have seemed overly bullish six months ago but now look perfectly feasible. However, if you are trading or looking to invest, we don’t recommend betting your stakes on the higher end of price predictions. We might have to wait for a few more months before it is clear whether the XLM coin will reach $1 this year.
Stellar Lumens Price Predictions for 2022-2023
Being a highly volatile asset, the price of XLM in the two years can only be a wild guess. A number of industry experts and price analysts have come out to give their guesses for 2022 and 2023.
Let’s start with Long Forecast, which gives the most optimistic prediction for this time frame. The site predicts that XLM will hit $1 as early as August 2021. By 2022, the coin will mostly be selling between $0.8 and $1.2 per token. October will be the lowest month, with the price trading at $0.81. In November and December, it will be at $0.85. Then in January, July, and September 2022, the price will be bouncing around the $0.9 mark.
The rest of the months will be above $1.
Long Forecast predicts a drastic drop in 2023 as XLM falls out of favour with most investors. Probably by this time, there will be better crypto platforms offering the same service as XLM, which will cause its price to fall. However, for some reason, Long Forecast thinks many cryptos, including XLM’s close competitor XRP, will drop in 2023.
The coin will start 2023 at $0.71 then drop gradually to reach $0.36 by the end of the year.
Wallet Investor still doesn’t think Stellar Lumens will reach $1 in 2022. Not even in its yearly highs. The site predicts that XLM will play between $0.6 and $0.8 for the rest of the year, with very few fluctuations along the way.
In 2023, the price of XLM will jump back and forth between $0.8 and $0.9 before crossing over to $1 towards the end of December, where it will fish the year at $1.032 or as high as $1.298.
On the bright side, the $1 might be achieved as early as January 2023 if Wall Investor’s high XLM price points are anything to go by.
There is a conspicuous difference between how Wallet Investor and Long Forecast think Stellar Lumens will end 2023. While Long Forecast believes the price of Stellar will generally flop after hitting $1 in 2022, Wallet Investor believes it will continue on an uptrend that might finally take it to $1 when 2023 comes to an end.
Stellar Lumens Price Predictions for 2024-2025
As we already mentioned, predictions that go this far should only be taken with a grain of salt. If you have noticed, most price analysts keep revising their predictions. This is because of the volatility and unpredictable nature of cryptocurrencies.
So, it is possible that the price predictions we mention here will have been changed in a few months. Despite this, we pick up the general idea that Stellar Lumens will be worth much more than it is right now.
Long Forecasts believes that the drop that began in 2023 will continue in 2024, with the price plunging lower than it is right now.
According to the site, XLM might trade at the same price it did in July 2018 at the start of 2024. That is around $0.39. The price will keep plummeting, going down as far as $0.23, then finish the year at around $0.32.
Wallet Investor’s predictions go in the opposite direction with the belief that the XLM will go higher in 2024.
In fact, Wallet Investor predicts that Stellar Lumens will trade above the $1 mark for the rest of 2024. However, it will not reach $2 until around 2027.
Long Forecast changes the tune at the start of 2025, with the price looking up again. It will start the year at around $0.37, and by mid-year, it will be going for $0.57.
According to Wallet Investor, XLM will most likely dance between $1.2 and $1.3 but won’t reach $1.4 until late December 2025. It might also go above $2 if their maximum price prediction comes to pass.
What Factors Affect The Price Of Stellar Lumens?
Stellar Lumens is much more decentralized compared to its close competitor XRP. For this reason, there are a few fundamental factors that directly inform its price directions. Having said that, there are still several internal and external factors that might help in predicting the XLM price movement in the future.
By understanding how these factors play out, we will be able to predict Stellar Lumens’ growth and possibly make a good investment decision.
Supply and Demand
Supply and demand are directly responsible for the price movement of every cryptocurrency. XLM is no exception. The reason why Bitcoin is booming right now is that it is considered a scarce asset. Mostly, its demand is always greater than the supply.
Now, if more people suddenly decide to buy Stellar Lumens, the demand will be higher than the supply causing the price to shoot up. The opposite is also true. That is, if there are more people selling than buying, the demand will be lower than the supply, and thus the price will go down.
Rise of Decentralized Apps (dApps)
Any cryptocurrency network that supports decentralized finance will subsequently be affected by the growth of decentralized applications. Currently, there is a growing demand for dApps as more people finally begin to appreciate their roles in the financial industry.
And since the Stellar Network allows the development of these applications on its platform, its growth will be partly dependent on them. The network has already partnered with institutions such as IBM to facilitate the growth of decentralized finance based on its blockchain.
As more of these dApps see the light of the day, Stellar Lumens will be much more valuable. Probably, partnering with big companies like IBM will bolster faster mainstream adoption of Stellar’s lumens and significantly boost its price.
Conclusion: Will the Price of Stellar Lumens Keep Rising?
Like is the case with most cryptocurrencies, Stellar Lumens price predictions from different experts differ widely. Some like Wallet Investor believe the price of XLM will rise and achieve new milestones in the coming years. On the other hand, sites like Long Forecast believe the price might fall and struggle to break its previous records again.
Here are XLM Potential price predictions based on the coin’s price history, current trends, and likely price change inspired by the factors discussed above.
Stellar Lumens Price Predictions For 2021-2025:
Generally, the Stellar Network is working effortlessly against any storms on its path. This is demonstrated by the recent release of the roadmap that is supposed to guide the company to stardom this year.
So, will the Price of Stellar's Lumens go up?
Stellar XLM token could increase significantly if the Stellar Network closes more partnerships with high-profile institutions, it will help catalyze its growth and bring it closer to dethroning Ripple as the preferred option for efficient cross-border transactions.
The network should also push for the development of more dApps on its platform to help with future growth. It is currently supporting a few applications compared to Ripple, and this might be a hindrance to its growth.
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