In 13 years of existence, the cryptocurrency universe is almost rubbing shoulders with the stock market in terms of popularity. The market capitalization may still be too far from that of conventional securities, but no one can deny that many people (especially the young) favour the cryptocurrency market over the stock market.
It is also exciting to know that the cryptocurrency market has become a serious wealth creator in such a little time of existence. Though the market has several shortcomings, it can still market willing investors rich. One of the secrets of making money on the market is knowing the right token to back.
Stellar is one of the top cryptocurrencies in the world today. Like others, it is available on major exchanges and can be purchased by anyone who is willing to trade or invest. But can Stellar make you rich in ten years? In order words, is it a good long-term investment?
We can provide a straightforward answer to this important question. We respect individuals’ rights to make a decision about investment options. To help, we provide everyone with the information they need to make an informed decision.
In this post, we are going to discuss the most important things you need to know about Stellar as a platform and Stellar (XLM) as a crypto token. If you are really interested in investing in Stellar and want to decide whether it is a good long-term investment, we’ll encourage you to read every part of this post carefully to get the information you need to make the right decision.
What Is Stellar?
Stellar is a decentralized network that allows users to create, send, and trade different cryptocurrencies. In addition to being an effective open-source distributed payment network, it is a cryptocurrency platform with a native coin that has become an acceptable digital asset that can be traded in other cryptocurrency exchanges.
Stellar is one of the many platforms that support cross-border payments. The impressive thing about the network is that it supports fast payments – cross-border payments can be completed at lightning speed without hitches or security issues.
Like most other cryptocurrency networks, Stellar is based on the now-popular blockchain technology. This means it is a decentralized system spread across multiple servers. To facilitate smooth and less expensive cross-border transactions, Stellar has a native currency, which is called Lumens. This is the asset you will buy when you decide to invest in Stellar.
It is important to note here that the Stellar token was called Stellars when the platform was launched. It took a while for the platform to change the currency’s name to Lumen. It is still okay to refer to the token as Stellars, Stellar Lumens, Lumens, or XLM. We can use any of these terms to address the asset.
More About Stellar
If you are familiar with the workings of the cryptocurrency universe, you will notice that Stellar is very similar to Ripples. This is because the two platforms share something in common. Stellar was founded in 2014 by one of Ripple's co-founders, Jed McCaleb.
After playing a prominent role in developing Ripples, McCaleb felt the project was not moving in the direction he wanted. He decided to create a platform and cryptocurrency that will be ideal for everyday users. He worked with Joyce Kim, a former lawyer, to launch the new platform called Stellar.
The launch of Stellar can be described as very successful. Even before the official launch of the cryptocurrency, the founders collaborated with Stripe’s CEO, Patrick Collison, to create the nonprofit Stellar Development Foundation.
Stellar has grown significantly over the years. While there have been challenges, the cryptocurrency platform, and its native coin/currency has seen several growth spurts. It was able to garner almost three million user accounts in just under a year. Mercado Bitcoin was one of the first big players to announce its use of the platform.
Stellar is gaining ground in the cryptocurrency universe steadily. Through the ingenuity of the founders and the performance of the platform and its native coin, Stellar has been able to attract significant partnerships. Some notable partners include IBM, KickEx, Flutterwave, and ICICI Bank in India.
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What Are Stellar Lumens?
Stellar Lumens (XLM) is the native currency of the Stellar network. It is the foundation of the network and the asset that facilitates transactions on the network. The Stellar platform is open to all representations of money and crypto assets, but the Lumens is the original currency that fuels transactions in the network.
Again, the Stellar Lumens (XLM) is the asset you will get when you invest in the network. The majority of people who interact with the network for investment purposes are primarily concerned about the price of the coin, though the value the platform offers is also of extreme importance.
Just like what obtains in Ripples, Lumens are mostly used to pay transaction fees on the Stellar network. It also acts as an intermediary token to make the execution of transactions on the network faster and affordable.
When transacting on the Stellar network, you don’t necessarily need to convert your crypto asset or fiat currency before making a payment. The system has a built-in protocol that automatically converts money or assets sent through the network to Lumens and then to the desired asset for the recipient.
The conversions are done so fast that users are mostly unaware of it. It can be completed in a matter of seconds, which is a lot better than what obtains with Bitcoin and most other cryptocurrencies. The network and its currency make it easy for anyone to send and receive money from anywhere in the world. As hinted earlier, it makes such transactions far cheaper than what is obtainable with banks and other financial institutions.
Is Stellar A Good Investment?
Looking at what Stellar has achieved and its ambitions, it is safe to say that it is a wonderful platform. Already, it has made a remarkable impact in the financial sector. But does that mean investing in Stellar is a great idea?
When it comes to making online investments, sentiment should be the last thing that should guide your decision. You have to choose an asset that can yield you profit. If you are considering a long-term investment, you will need to look at the past, the presence, and the possible future of the asset you want to buy.
To help you make the right decision with Stellar, we are going to discuss the price history of the coin, its current position and performance, as well as predictions from different sources. In the end, you should have the information you need to make a decision about the coin.
Price History of Stellar Lumens
When Stellar was launched in 2014, the price of the cryptocurrency was $0.0021 per token. One of its major growth spurts happened when the CEO of Mercado Bitcoin, one of the biggest digital currency operations in Latin America, announced a partnership with the platform.
The partnership was favourable to all parties. The price of Lumens improved steadily, even as the trade volume jumped to about $4,000 from a paltry $0.06 when it debuted. It reached an all-time low of $0.001227 on November 18th. It improved, however, and eventually finished the year at $0.0054.
2015 was also a good year for Stellar as a platform and Lumens as a digital currency. The platform gained popularity in East and Southeast Asia. Before the platform celebrated its first anniversary, it had approximately three million user accounts. The major attractions were the speed of straightforward transactions and low transaction fees.
The price of XLM didn’t jump as high as much as many expected. In fact, the price dropped in early January from $0.055 to $0.0041. The platform recorded more successes in terms of collaborations and partnerships. But the price of the coin plummeted further, reaching $0.0034 by the end of the second quarter of the year. The coin lost more value and finished 2015 at a disappointing $0.0017 per token.
2016 was also a good year for Stellar as Deloitte, among other corporations, announced a partnership with the network. The price of the coin started improving slowly from $0.0018 on January 1st to $0.0021 by June 30th. It was able to finish 2016 at $0.0024 per token.
2017 was also a very good year for the platform in terms of partnerships and growth opportunities. Lumens (XLM) also gained significantly. The coin opened the year at $0.0025 and increased to $0.0239 by the end of the first quarter. The rest of the year was even better as the coin gained and closed the year at $0.4840. It was an impressive 19260% growth for the coin, all thanks to the resistance demonstrated by the decentralized finance market.
2018 started well for XLM. It reached an all-time high of $0.9381 on January 4th, 2018. But the bearish market affected the coin like other digital currencies. It dropped significantly and sold for just $0.1993 by the end of June. It plummeted further to close the year at $0.1157.
2019 didn’t prove to be better for Stellar Lumens in any way. It opened the year at $0.1195 and closed at $0.0452. With the coronavirus affecting almost every industry, Lumens didn’t have any magic up its sleeves. All the same, the coin improved throughout the year. It opened at $0.0436 and closed the year at $0.1324. That was a 203.67% improvement in price, which we can consider a success.
Current Performance Of The Stellar Token
At the time of writing this piece, Lumens is trading at $0.28, according to Coin Market Cap. In the last 24-hours, it has recorded a low price of $0.2691 and a high of $0.2905. There is a big margin, stressing the volatility of the coin.
The coin currently has a market capitalization of $7 billion at the time of writing, making it the 28th ranked cryptocurrency in the world.
Stellar has 24.77B XLM in circulation. The total supply of the coin is expected to reach 50,001,803,090 XLM, while the maximum supply will be 50,001,806,812 XLM. The coin is traded on major exchanges, including Binance, Huobi Global, OKEx, CoinTiger, FTX, and more.
Stellar Lumens Price Predictions
Lumens may gain value in the near future if we are to believe the predictions of many reliable sources. Wallet Investor, for instance, predicts that the XLM can be worth $0.513 by the end of 2022. The site also predicts that the coin will be worth as much as $1.649 in five years' time (2027).
According to Trading Beast, Lumens can be worth $0.4476 by the end of 2022. They also believe that the coin will grow gradually and may reach $0.6810 in three years' time (2025).
Digital Coin Price is also positive about Lumens. According to their predictions, XLM can reach $0.37 in 2022. They also believe that the coin price will increase to $0.47, $0.55, and $0.57 in 2023, 2024, and 2025 respectively.
Coming to long-term predictions, Digital Coin Price believes XLM can be worth as much as $1.01 in 2028. They also believe that the lowest price of the coin in the future will be up to $0.8630, while the maximum price will be up to $1.08.
Coin Price Forecast is also optimistic about Stellar Lumens. It believes that the coin can reach be worth about $0.53 by mid-2026 and increase to $0.58 by the end of the year. In ten years’ time, they believe that Lumens can be worth as much as $0.95.
Where Will Stellar Lumens Be In The Next Ten Years?
It is very difficult to authoritatively state where a cryptocurrency will be in the next ten years. The industry is pretty young and evolving, and a lot can happen in the space of ten years.
However, from what we have seen about Stellar and its native currency, it is safe to predict that the platform will grow and the currency will improve in terms of value and price.
Most prediction sites believe that Lumens will be well worth over $1 in the next ten years, and we can agree with them. The network is great, and the crypto token has started to pick up after years of rising and falling.
The stellar network has secured a lot of partnerships that make it a more stable network than most others in the cryptocurrency universe. We expect that the platform will become a lot more useful in the future, and the coin can grow even higher than most experts have predicted.
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Why You May Want To Invest In Stellar
There are many reasons you may want to invest in Stellar. If you have followed this post seriously, you probably have your list of reasons already. For the sake of emphasis, here are some of the most important reasons you may want to invest in Stellar:
- Stellar has landed several important partnerships
- Stellar is relevant and solves real-life problems (lightning speed transaction time and low transaction fees)
- The stellar lumens is practical for use as a currency and has a world-class user experience
- Lumens has smart contracts capabilities as well as KYC functionalities
- Stellar has officially launched a stablecoin (USDC)
- XLM is considered a safer version of XRP, primarily because it is reasonably priced at the moment
- The platform and cryptocurrency have an incredible team behind it
- Stellar keeps upgrading its network and making giant strides in terms of projects and relevant partnerships.
Why You Should Think Twice Before Investing In Stellar
Though there are so many wonderful things about Stellar and Lumens XLM, you don't want to jump into making an investment in a cryptocurrency. The platform is great, and the currency is likely to perform better in the future, but here are some drawbacks you should consider before investing:
- Lumens is still a cryptocurrency and subject to volatility in the market
- The cryptocurrency universe may experience heavy regulation, and Lumen will not be immune
- The Stellar network is growing so much, but Lumens is not growing at the same rate in terms of adoption
- Lumens (XLM) faces strong competition from Ripples (XRP), which is an older and more trusted platform and cryptocurrency.
Should You Play The Long-Term Game With Stellar Lumens (XLM)
From what we have covered so far, it appears investing in Stellar Lumens is a great idea. But does it also mean that a long-term investment in the coin will make you rich?
XLM appears like a solid digital asset, but the value is unlikely to rise the way Bitcoin did. From what we have seen over the years, the price may continue to rise, but at a pace that will mostly appeal to patient investors. You can play the long-term game with the coin, but there is no guarantee that it will make you stupendously rich in ten years’ time.
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Important Tips for Investing In XLM
Investing in Lumens XLM is a brilliant idea, but remember that there are risks involved. Here are a few tips to consider when investing:
- You don’t have to invest your life-saving with the hope of becoming super-rich in the future
- You don’t necessarily have to wait for ten years before cashing in on your investment – it is always better to pay attention to the market and take advantage of opportunities
- Keep reading and learning to become a better trader and investor.