Stellar’s Lumen (XLM) had a rather wild February, with its price jumping back and forth in the range of $0.06 – $0.086.
Based on the latest reports, the project is persistently trying to expand its market share. As announced by the head of partnerships for the Stellar Foundation, Lisa Nestor, Stellar is now working in many countries worldwide to boost its ecosystem, the case uses and strategic partnerships.
Their efforts seem to succeed as there are already a few big names associated with its network, including IBM (IBM), Deloitte, Stripe, Tempo, SatoshiPay, Saldo and Wirex. Even Binance, the world’s largest crypto exchange, started providing support for the Stellar crypto, proving the project’s worth and high potential.
Only a few days ago, a famous Senegalese-American recording artist Akon announced that he has chosen the Stellar blockchain for launching his Akoin cryptocurrency ecosystem.
And while the value of Stellar’s Lumens is now 94 per cent down from its record highs, a few crypto experts argue that XLM will surely double its price in the foreseeable future.
Do you want to invest in Stellar coin but not sure how it is set to perform over the next few years? We have you covered. In this article, we recap the project’s fundamentals, review its recent price performance and check out what the latest Stellar Lumens price prediction for 2020 and beyond looks like.
What makes Stellar valuable for the industry?
Developed in 2014, Stellar is a distributed hybrid blockchain platform. It is primarily focused on integrating distributed ledger technology (DLT) into existing financial infrastructure, serving as a bridge between the opposite worlds of traditional, centralised fiat currencies and decentralised cryptocurrencies. The project’s main intention is to be an open financial system that gives people of all income levels access to low-cost financial services.
Apart from everyday users, Stellar also offers many advantages to banks, financial institutions and large organisations. It allows those to utilise its network to manage micropayments, reduce the transaction and remittance costs and increase the reach through mobile branches.
Lumen (XLM) is the native cryptocurrency of the Stellar network. It is one of the altcoins that were not designed based on the Bitcoin’s source code. The XLM coin is very versatile, known to be appropriate for different types of transactions. It can be used for micropayments, process remittances without the issues of forex exchange and make payments almost instantly.
XLM can effectively handle 1,000 transactions per second at less than a penny each. Moreover, the coin is tradable anywhere in the world in less than five seconds, which makes it a great fit for cross-border transactions.
The coin also provides the Horizon API, a solution that offers the usage of the Stellar technologies to build new applications.
XLM price analysis: a story of a “stellar” fall?
For almost three years after the platform’s launch, the price of one XLM coin wobbled around $0.002 – $0.003.
The first significant hike in the XLM’s value happened in May 2017, when its price came close to being a little over $0.05 per coin. However, the coin quickly dropped back to trade at $0.01.
In November 2017, Stellar crypto finally gained a strong upside momentum that translated into the next year. 2018 treated XLM better than many other cryptocurrency. With the coin being often considered the main competitor of Ripple (XRP), investors actively responded to new developments offered by the project team. The announcement of cooperation with IBM and the addition of Stellar to the list of trading pairs on the OKEx exchange boosted market sentiment. The ascending price trend peaked at the all-time high of $0.938 on January 4, 2018.
After hitting its record valuation, the XLM price has mainly been on a downtrend. By March 2018, the coin lost most of its gains, falling as low as $0.17.
Nevertheless, unlike many of its counterparts, Lumen still had some significant growth spurts. Against the background of several resonant news, including listing on Coinbase and obtaining Sharia certification from the Bank of Bahrain, traders saw great opportunities that would come with investment in Stellar. In May 2018, the coin hit $0.46.
Positive news was not enough to support the currency, and the downtrend continued in 2019. The coin started the year at $0.11 to only fall as low as $0.044 by the end of December. There was one short-lived price hike in May, when XLM gained 40 per cent to trade at $0.16 amid the positive news about Wirex, a UK FCA-regulated global digital payment platform, releasing 26 stablecoins on Stellar’s blockchain for its 2 million users and 5,000 business clients
At the start of 2020, the multi-year bear market saw XLM hitting a low of $0.042, a price level not seen since late November 2017. During the first two months of this year, the price of XLM fluctuated in the range of $0.045 – $0.085. At the time of writing, March 3, 2020, one coin traded at $0.058.
XLM price prediction for 2020 and beyond: does it stand a chance for a bright future?
With its growing list of partnerships, as well as its quickly developing ecosystem, many believe that Stellar has the potential to be a very reputable player in the crypto arena. The services it provides are rather straightforward and offer practical real-world applications.
But is it enough for the cryptocurrency to be a good investment in 2020?
The crypto market moves at a rapid pace, making it rather difficult to predict its future movements. To bring some clarity, we have decided to gather a number of the latest Stellar Lumens price prediction for 2020 and beyond from various sources.
According to CoinSwitch, Stellar has a potential to grow out to be one of the best performing cryptocurrencies in the next five years. Their analysts believe XLM will likely touch the $1 mark in 2025, citing that through IBM’s partnership with the Australian government, Stellar could be one of the eminent partners that might gain huge success.
A popular crypto forecast website, TradingBeasts.com, also provides its own prognosis that is based on technical analysis. Its XLM price prediction suggests that the coin will trade around $0.069 by the end of this year; and will remain at the same level throughout 2021. By December 2023, Lumen is expected to rise to an average of $0.109.
The most bullish XLM price prediction is offered by Cryptoground.com. Based on an internal deep learning algorithm, the website states that the coin will likely reach $0.105 in one year, gaining almost 82 per cent. The growth is expected to continue, with XLM hitting a $0.7422 valuation in five years.
However, not everyone has an optimistic XLM forecast. Known for its pragmatic forecasts, Walletinvestor.com refers to Lumen as a “bad, high-risk one-year investment option.” Based on their technical analysis, the coin is expected to drop in value significantly, with its price plummeting as low as $0.005 by the end of 2020. The website also prognoses the coin to start 2025 at a disappointing rate of $0.001.
According to another online service Longforecast.com, the Stellar price prediction for the end of December 2020 is $0.024. Regarding the longer term, they suggest the cryptocurrency will have a moderate growth, trading at $0.054 by April 2024.
The bottom line: is XLM a good investment?
Like with any other asset, there is no definite answer to this question. In fact, it is very difficult to predict what the price of XLM could be in a few hours; and even harder to give long-term estimates. Moreover, according to the projections mentioned above, the analysts have also split in two.
Over the past few years, the crypto market has experienced multiple ups and downs. While all the talks continue to revolve around a bright future of digital money, there are still many questions to answer. For that, when choosing what cryptocurrency to invest in, it is always crucial to consider the latest news, market trends, expert opinion and technical analysis.
We always recommend you to arm yourself with as much knowledge as possible.
If you think you are not ready to make long-term investment commitments, but still want to try to profit from the coin’s volatility, you can do so through contracts for difference (CFD).
You can learn more about CFD trading with free online courses and find out how to trade Stellar CFDs by reading our comprehensive guide. Always stay on top of the latest XLM coin news with Capital.com.
So, what do you think about the future of this digital coin? Is your Stellar price forecast bullish or bearish?
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