Will Stellar Lumens (XLM) Reach $1?

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Last Updated January 13th 2022
7 Min Read

Will Stellar Lumens reach $1? The general feeling among the crypto industry experts and Stellar Lumens investors is that the XLM altcoin will eventually reach and possibly surpass the $1 price target. Some are even confident that Stellar Lumens would be trading well above $1 were it not for the drop in price after reaching a yearly high in May last year.

These predictions have now been invalidated by circumstances, and most analysts don’t even expect the XLM coin to reach $1 before the end of the year. They contend that the market may take longer than expected to stabilise, which in turn means that it may take longer before Stellar Lumens gets back to its pre-market crisis price levels.

For instance, one of the most popular price prediction websites that uses technical analysis to forecast crypto prices - Wallet Investor - indicates that Stellar Lumens (XLM) will recover by this time next year, pierce above $0.70 sometime in 2023 and rise to $1.59 by 2026.

But how far up do these experts and technical analysis expect XLM prices to reach in the foreseeable future. For instance, will Lumens reach $5 and what will be their worth by the end of 2025? Importantly, what are some of the factors that experts believe will help Stellar Lumens hit these price milestones?

We answer all these questions here and look at some expert price predictions for the altcoin. But we start by looking at its price and past price action.

Stellar Lumens (XLM) Current Price

At the time of writing, Stellar Lumens is trading at $0.28 on Coindesk and has gained about 3.72% of its value in the last 24 hours. On Coinmarketcap, it is ranked position 28 on the list of the largest cryptocurrencies with a live market capitalisation of $7 Billion and has a circulating supply of 24.77 Billion XLM coins.

At the current price, Stellar Lumens has shed more than 64% of 2021’s peak prices of about $0.79 achieved in May. It also implies that the coin will need to more than double its current price if it hopes to reach $1 before the end of the year.

In the past Stellar has come so close to reaching this elusive price level, only for its momentum to be thwarted by abrupt market reversals - on both occasions.

The first happened during the 2017/18 crypto market run that saw Stellar Lumens prices rise steadily but miss the target by a whisker instead of settling for the current all-time high of $0.938. At the time, Stellar had even made to the list of the 10 largest cryptocurrencies by market cap.

After close to three years of depressed price performance and its fall off the list of most valuable digital currencies, XLM started rallying again in November 2020. The rally picked pace in early January and sustained the momentum until the crypto market run slid and started reversing. At the time, it was valued at $0.796.

But is the third time the charm for Stellar Lumens (XLM)? Does it even have what it takes to be at par with the US Dollar?

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

So, Will Stellar Lumens Reach $1?

The market is convinced that Stellar Network has what it takes to push the price of the XML coin above $1. The crypto community is convinced that Stellar Lumens represent and, therefore, extremely optimistic about its bullish future. The only thing the market cannot agree on is a prediction on when the XLM coin will reach $1.

Some believe it is possible for the coins to reach this price level before the end of the year, while others can only see Stellar Lumens reaching this price level in the next few years.

But why the optimism? What are some of the factors that these analysts believe will drive XLM prices up?

Mainstream adoption: Since its launch, Stellar has collaborated with multiple institutions, especially in the finance sector. And they are building payment facilitation programs on the Stellar Network - with some having been launched already. Some of these partners include IBM, Deloitte, Oradian Bank in Nigeria, Flutterwave, ICICI Bank of India, TechCrunch, and even the ministry of Digital Transformation in Ukraine. And they all have played a key role in pushing up its prices.

Perception: In the crypto industry, sentiments change fast. A cryptocurrency must, therefore, strive to maintain a positive perception of its coin and brand in the eyes of the crypto community and Stellar Lumens is no exception.

Legislations and policy changes: The recent crypto market run hit a snag when China emphasized its ban on cryptocurrencies. Bitcoin prices were the first to nosedive, and after them, the crypto market - Stellar Lumens included - came tumbling. This is enough testament to the impact that negative crypto policies may have on the XLM token.

Sharia compliance: In 2018, Stellar became the first decentralised protocol to obtain a Sharia compliance certificate. It has taken a pioneering role in wooing the Muslim world and bets on leveraging this first-mover advantage to dominate the Arab-world crypto markets in the near future.   

WILL Stellar Lumens Eventually Reach $5?

Predicting the future of a coin - as volatile and unpredictable as Stellar Lumens can be quite hard. But analysis points to a possible run towards $5 for the XLM token within the next five to ten years.

There, however, is a caveat. Most crypto experts believe it can only be possible if the market stabilises and XLM reaches $1 before the end of the year or next year.

What Will Stellar Lumens Be Worth in 2025?

Looking at different Stellar Lumens price predictions, one can tell that there is a consensus within the crypto community that XLM coin will have reached $1 by 2025. Some are even confident that they will have breached the enviable $5 mark.

Cryptocurrency experts at Coinpedia are, for instance, convinced that Stellar Lumens XLM will reach $5 before the end of 2025. But to get here, their analysis indicates that Stellar Lumens will first need to reach the highs of between $0.8 and $1.5 by the end of the year and $2 by 2022.

Prime XBT uses technical analysis to forecast prices for different crypto assets. Their most recent Stellar Lumens price prediction is overly-optimistic as the website expects XLM to fully recover and reach $0.75 by the end of the year before rising to $13 by 2023. The analysis also predicts another market dip between 2023 and 2025, which will wipe most of XLM coin gains and have it end year 2025 trading at around $6.

But not everyone is this optimistic about moves by Stellar Lumens' potential price moves in the next few years. Technical analysis by Digitalcoinprice, for instance, paints a gloomy picture of XLM coin’s price action for the next few years. Their analysis even suggests that Stellar prices will only reach $1 in early 2025, end that day trading at $1.19 and may not reach $2 until after 2028.

Check Out: Stellar (XLM) Price Prediction for 2025 and 2030

Conclusion

Stellar Lumens coins have the backing of one of the most successful cryptocurrency projects. The cryptocurrency and Stellar Foundation have also been received with a lot of grace by both the crypto and off-chain communities who are willing to invest in the coin and build on its network. These explain why it remains relevant seven years after its launch and, possibly, why it once made it to the list of 10 largest cryptocurrencies.

Moving forward, crypto market experts are convinced that the coin will continue with its gradual price growth. Their analysis and predictions suggest that Stellar Lumens (XLM) will eventually reach $1 and climb up to $5. How soon the coins hit these milestones will, however, be dependent on how fast it recovers from the current dip and such other factors as crypto regulations by governments. 

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

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