Stellar’s XLM Price Can Increase Due To Rising Adoption

XLM Price Prediction: Is $100 Possible? 

Last Updated January 13th 2022
6 Min Read

Stellar blockchain network's native cryptocurrency, Lumen (XLM), is one of the hottest coins in the market currently. The token is trading at $0.28, pulled by bullish sentiment across the market. Since XLM bottomed out in July last year, it has gained more than 84%. Experts predict that this is only the beginning as the coin is slated for more gains in the future.

XLM price can continue to increase due to rising adoption and popularity. So if you are considering investing in XLM, go on and learn more about this emerging crypto platform.

What is Stellar? How Does It Work?

Learn more about one of the best-performing cryptocurrencies in the market.

Stellar is an open-source payments network that serves as a distributed intermediary blockchain for global financial systems and circulates a native asset, Stellar Lumens (XLM). The Stellar blockchain allows anyone to issue new crypto assets in the network and exchange for other assets via built-in asset exchange features. 

Tokens on Stellar are issued and redeemed by anchors, trusted entities that dispense digital credits on the Stellar network in exchange for asset deposits with the trusted entity. 

Anchors enable the exchange of real-world assets on Stellar by leveraging a distributed platform that maintains an order book for every asset pair. The Stellar network supports the issuance of various assets, including stocks, currencies, crypto assets, and more. 

Thanks to its impressive market cap, Stellar Lumens has managed to remain in the top 30 cryptocurrencies. Buying XLM now could help you realize significant profits in the long run.

A Brief History of Stellar 

With strong fundamentals in place, XLM is a must-have cryptocurrency in an investment portfolio.

Stellar is operated by the Stellar Development Foundation, a nonprofit organization founded by Jed McCaleb. The project received initial funding from the payments startup Stripe. It also collected donations from BlackRock, Google, and FastForward, etc. 

In 2018, Stellar signed a deal with TransferTo for cross-border payments to more than 70 nations. It also became the first distributed technology ledger to obtain a Shariah-compliance certificate for payments and asset tokenization. IBM also selected Stellar as a partner for a double-pegged stablecoin project.

Thanks to its solid fundamentals, XLM makes a stellar investment choice as the platform still has a lot of room to grow.

Check Out: How To Make (or Lose) Money With Stellar Lumens (XLM)

Future of Stellar: What Is Happening to the Price of XLM?

Based on its price movements, XLM is headed towards a bright future, making now a good time to buy XLM.

Stellar’s primary focus is on remittances and bank loans to those who are outside of the scope of the banking services. The platform does not charge individuals or institutions for using the network.

The platform supports a distributed exchange mode, where users can send payments in specific currencies even though they may hold credits in another. Meanwhile, the network automatically performs the forex conversion. The receiver can withdraw their currency equivalent through a partner institute like a bank.

As a cross-border transfer and payment system that connects financial entities, Stellar aims to reduce transaction costs and time lags. While Stellar works just like technologies like Bitcoin, its key distinguishing feature is its consensus protocol. 

The present-day Stellar is a result of a 2014 fork that created the Stellar Consensus Protocol (SCP). Following that, Stellar became an open-source system. Under this protocol, the transaction authentication process is confined to a select set of trustworthy nodes rather than being left open to the whole network of nodes.

Each node on the network selects a set of trustworthy nodes, and a transaction is considered approved once authenticated by all nodes that are part of this select group. This shortened approval cycle allows the Stellar network to process transactions faster and keep transaction costs lower.

XLM returned over 125% in 2021. However, the token has seen some decline over the past few weeks. Mainly, this is due to the broader sell-off in the crypto space due to the market drop that started in December 2021. 

Notably, it is rebounding with the rest of the crypto market. XLM has gained about 47% since July 19th 2021. There are two major reasons for the rebound. First is the general optimism about cryptocurrencies. Most of the smaller cryptos take price cues from Bitcoin. Since Bitcoin has been rising lately, so are altcoins. 

Secondly, the SDF (Stellar Development Foundation) is said to be in talks with Moneygram International about a potential acquisition. This might also have led some investors towards XLM. Investing in Stellar now could help you diversify your portfolio and increase the chances of making immense returns in the future.

Stellar Price Predictions 

WalletInvestor sees XLM going from the current price of $0.28 to $0.51 in one year, a gain of around 82.14%. Digital Coin Price also predicts a target price of $0.37 for XLM by the end of 2022. This suggests an upside of about 32.14% for the token. After that, however, the firm sees a gradual rise in XLM price and expects it to grow by nearly 103.57% to reach $0.57 by 2025.

Long Forecast does not foresee significant gains but instead expects XLM to drop in prices. It sees a decline of 10.71% for XLM and expects it to reach $0.25 by the end of 2022.

Don't Miss: What Will Stellar Lumens (XLM) Be Worth In 2030?

Will XLM Reach $10?

The Stellar lumens projection from Coin Price Forecast is more cautious. It puts the price at $0.34 by the end of 2022, $0.50 by 2025, and $0.81 by 2030.

The Stellar crypto forecast from algorithm-based site Wallet Investor predicts that the XLM price will reach $1.29 by the end of 2025. 

Based on these estimations, XLM reaching $10 in 2022 seems unlikely. However, the chances of Stellar hitting $10 over the next few years are very high. This makes XLM an excellent candidate for long-term investment.

Will XLM Reach $100?

With the recent momentum in the crypto space and SDF’s potential acquisition talks with Moneygram, it is common for investors to want to know if XLM can reach $100 in the future. 

To reach $100, XLM will have to rise by nearly 30,000%. While it is still a possibility, these kinds of gains are not typical for established crypto projects. Doing incremental improvements and partnerships results in a gradual price increase.

Is XLM a Good Investment?

XLM is still a good investment as its adoption rises due to its speed and lower cost in cross-border remittance. However, it is important to keep in mind that crypto markets are volatile, making it difficult to predict future price movements accurately. 

Investors are advised to perform their own research, consider the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decisions. And never invest more than you can afford to lose.

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