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 2022.
The coin is currently trading at the $0.27 mark. With a market cap of $6 billion, we can safely assume that XLM may go 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 2022: Everything You Should Know
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 2022 Roadmap that was released by the Stellar Development Foundation towards the end of January 2022.
The roadmap outlines three strategic pillars that are expected to make XLM more alluring in the eyes of investors. These pillars are:
- Building blocks to interoperability and inclusion
- Increasing scalability and network innovation
- Activating more network participation
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 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. Stellar went back to $0.37 in November to end 2021 trading at $0.2683.
Read Also: How to Trade Stellar: A Step-by-Step Guide
Stellar Lumens Price Predictions for 2022-2023
Being a highly volatile asset, the price of XLM in the coming year 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 least optimistic prediction for this time frame. In 2022, the coin will mostly be selling between $0.14 and $0.24 per token. February will be the highest month, with the price trading at $0.31. In November and December, it will be at $0.18.
Long Forecast predicts similar prices in 2023. This year Stellar's price will be around $0.17 and $0.26, briefly crossing the $0.28 mark.
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 $0.14 and $0.51 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 $0.24 and $0.60 before crossing over to $0.70 towards the end of December, when it'll end it at $0.713.
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 won't reach $1 any time soon, Wallet Investor believes it will continue on an uptrend that might finally take it to $1 when 2024 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 rise that began in 2023 won't continue in 2024, with the price plunging lower than it is right now.
According to the site, XLM might trade at $0.26 at the start of 2024. The price will keep plummeting, going down as far as $0.14, then finish the year at around $0.17.
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 by the end of 2024. However, it will not reach $2 until around 2027.
Long Forecast forecasts Stellar's price dropping even more in 2025. It will start the year at around $0.16, and by mid-year, it will be going for $0.09.
According to Wallet Investor, XLM will most likely dance between $1 and $1.19 but won’t reach $1.29 until late December 2025. .
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 2022-2025:
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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