Stellar lumen price predictions: Will XLM reach the stars?
This year, Stellar Lumen price predictions seem to be missing the mark. The crypto market is still falling right now, taking the XLM price down. Does this mean the end for Stellar, or is it prepping to skyrocket soon?
Let’s start with the basics of the Stellar network and its Lumen cryptocurrency. Then, we will go through their various applications. More importantly, we’ll see if you should purchase XLM tokens this year or not.
The best investments are the ones that have long-term uses in the real world. In that case, things should look good for XLM price predictions, right? Find out as we explore the many reasons to be bullish or bearish for Stellar Lumens.
What is Stellar?
We're setting a new global payment standard with near-instant settlement and transaction fees of fractions of a cent. @DenelleDixon highlights how in this article for @Gemini Cryptopedia. https://t.co/Vk8YbDSm0v
— Stellar (@StellarOrg) May 3, 2021
Bitcoin is the first cryptocurrency. Since its launch in 2009, many coins have followed in its footsteps. Numerous developers wanted to improve on bitcoin’s potential.
Some took a step further by creating their separate digital coin. Ripple (XRP) was one of those that took a different path. Jed McCaleb and his other colleagues owned its company Ripplepay.
But then, McCaleb diverged from Ripple too. This led to him creating the Stellar blockchain under the OpenChain company. Meanwhile, Ripplepay shortened its name to Ripple.
Stellar and Ripple have the same purpose though. They want to make banking easier. Our current system takes too long and costs too much. This is worse for overseas transactions!
Specifically, Stellar aims to tokenize fiat currencies. In other words, it turns regular money into digital tokens. You might think this isn’t a big deal. After all, we often buy online nowadays.
Yet, this makes cross-border payment easier. The physical money behind them doesn’t have to leave the bank. You’ll save yourself the hassle of dealing with financial institutions.
What’s more, this helps people buy and sell stuff from other countries. Wherever you are, Stellar makes sure a dollar is worth a dollar. You won’t have to manage exchange rates.
What are Stellar Lumens (XLM)?
The Stellar system may seem too convenient. Someone could reduce it to a mere database. Worse, others might spam it with nonsense. This is why Stellar made lumens or XLM.
Lumens serve as a utility token for Stellar. Every user must have 1 XLM token. All transactions will cost a minimum of 0.00001 lumens.
It’s large enough to stop bad behavior in the Stellar network. Yet, the lumen fee is small enough to remain user-friendly for everyone.
Lumens also make sure the network doesn’t have a bias for certain currencies. As a result, this crypto resists the effects of factors that usually affect fiat money.
What’s more, it has another positive use that Lumen’s creators didn’t intend. It made exchanges even more convenient. Everyone must have XLM, so they can use it to transfer illiquid assets.
You could mine most cryptos, but not lumens. There are 100 billion XLM coins, and all are “pre-mined.” Five years after its release, the network increases the supply by 1% every year.
Stellar’s galaxy of possibilities
Businesses and nations see the potential of tokenization. That’s why you could see it applied to numerous fields nowadays. Stellar is one of the cryptos that could grow from this.
People could use XLM coins in numerous ways. These applications could branch out into even more potential use-cases. Here are some examples:
- Stellar lets you make assets yourself – The network lets you represent almost anything with digital ones. If you want, you could create tokens from lemons to bullion coins. This lets you place them in the Stellar network.
- It lets businesses do more – You may customize your tokens in many ways. For example, you may control them with multi-signature accounts.
- Ease of transfer between different currencies – Let’s say an American company will send a dollar payment to the Philippines. Stellar finds the best price and locks it. Then, the Filipino receives the funds as peso tokens. Both sides don’t have to convert their money themselves.
- Boost overseas remittances – Some economies gain from foreign funds sent by their citizens abroad. For example, remittances make up 10% of the Philippines’ GDP. Stellar could allow more Filipinos in other countries to send money back to the Philippines.
Is 2021 a star-studded year for the XLM price?
It’s easy to see why Stellar could look appealing. With all the amazing things it can do, there’s no way it wouldn’t go to the moon, right? Well, the price at the time of writing proves otherwise.
On June 22, the XLM price was around $0.2485. Stellar price forecasts see it may decline further. At the time of writing, the price of XLM is roughly $0.2583.
When you look at some Stellar lumen price predictions, you’ll often hear of technical analysis. They’ll tell you the current resistance or support levels that have been reached.
What they don’t usually mention is the state of the entire market right now. Bitcoin has crashed to 28k after China closed its bitcoin mining farms. This has a huge effect on every altcoin.
The big BTC is the top 1 crypto. When the bitcoin price is climbing, altcoin prices bump up a bit. However, a bitcoin crash can cut them almost by half.
The current one could be keeping XLM down. What’s more, numerous altcoins work similarly to Stellar. Here are some of the cryptos that facilitate transactions:
Investors may prefer these or many others over XLM. Along with the recent Bitcoin crash, 2021 might not be Stellar’s year to shine. We may take until 2022 before it hits an all-time high.
Final thoughts
The optimistic could still be right, though. Perhaps the crash will soon end. Cryptocurrency prices are well-known to change frequently and suddenly.
This is why you should learn all about the crypto market before investing. Understand terms such as trading volume and market cap. See how prices move short-term and long-term.
That way, you could gauge the market by yourself. Still listen to investment advice, though. Take them with a grain of salt, but see if it has clues to future market movements.
Learn more about Stellar lumen price predictions (2021)
Is Stellar a good investment in 2021?
It might not be a good investment this year. You may pick better cryptos that work similarly to XLM. Also, the recent crypto crash could further pull the price down.
Do Stellar Lumens have a future?
Perhaps we’ll see the price of XLM skyrocket in the future. After all, many companies are using it already, such as IBM. Its current World Wire project runs on the Stellar network.
Will Stellar make me rich?
Like most cryptos, buying Stellar could make you rich in the future. It has long-term uses that could boost its price. Remember that investing in anything has risk, even XLM coins.
Disclaimer: This article is the author’s personal opinion, which may differ from the “official” statements or facts. All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by Inquirer.net constitutes an investment recommendation, nor should any data or content published by Inquirer.net be relied upon for any investment activities.
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