Stellar (XLM), also known as Lumens, stands as one of the widely recognized cryptocurrencies utilized across blockchain-focused communities and traditional enterprises. Known for its advanced transaction processing speed, this digital asset offers both customization and high accessibility.
In this analysis, we explore the potential price trajectory of Stellar (XLM) and evaluate its prospects as a digital investment.
Historical Performance of Stellar (XLM)
Stellar’s least successful year in terms of price performance was 2018, a challenging period for nearly every major cryptocurrency. Throughout that year, Stellar failed to demonstrate a positive trend. Starting from January 1, 2019, its value continued to decline, falling from approximately $0.11 to $0.07 per token—a decrease of around 37%.
However, by February 2019, analysts began predicting a recovery by mid-year. These predictions proved accurate. When Bitcoin began its rebound, XLM reached a peak price near $0.16 in May 2019.
What Is Stellar Lumens (XLM)?
Stellar is a unique digital token that is not built on Bitcoin’s source code. The Stellar platform functions as a foreign exchange transaction provider operating in real time through its native token, XLM. It was created in early 2014 by Jed McCaleb and Joyce Kim during their work on the Ripple system.
XLM was later re-established as an independent project powered by Stellar Lumens. Today, the Stellar Development Foundation oversees its development, providing support for maintenance and funding.
But Stellar is more than just a cryptocurrency. The project has built a variety of services on its platform, including token issuance, decentralized exchange, and desktop client support.
It also offers the Horizon API—a solution that enables developers to create new applications using Stellar’s technology. These technical capabilities enhance both the utility and price potential of XLM.
Use Cases and Adoption
Stellar’s technology supports a range of practical applications:
- Micropayments between businesses and private users
- Remittance transfers
- Mobile financial services
- Enhanced transaction security
- Automated currency conversion
Notably, companies such as Deloitte and the Parkway Project have integrated Stellar into their business processes. This enterprise-friendly approach is often cited as a reason for optimistic XLM price forecasts.
Recent Developments and Challenges
The Stellar Development Foundation (SDF), a nonprofit organization, decided to discontinue a planned 2 billion XLM distribution to Keybase Messenger users due to fake account registrations.
Neither SDF nor Keybase could effectively filter these fraudulent accounts. As a result, the airdrop was canceled.
Note: Historical XLM price charts often use a logarithmic scale, meaning peak differences are more significant than they appear.
Stellar Price History
In its early years, Stellar’s price remained relatively low, often appealing to bulk buyers and long-term investors. For nearly three years after launch, 1 XLM was valued at around $0.002.
The first major price surge occurred in May 2017, when the token’s value rose to just over $0.05—a 25-fold increase from previous levels.
Another significant rally began in November 2017, peaking on January 4, 2018, when XLM reached an all-time high of $0.85.
Since that peak, Stellar’s price has generally trended downward. However, unlike many cryptocurrencies that followed a similar path, XLM showed several periods of notable volatility and growth—particularly in April and July 2018.
By 2019, Stellar had dipped significantly from its all-time high. Still, the token saw a strong recovery in May 2019, climbing to around $0.16—a 40% increase—driven in part by positive news around Wirex, an FCA-regulated borderless payment platform that planned to issue 26 stablecoins on the Stellar blockchain.
Stellar (XLM) Price Predictions
Several analysts and automated services have offered forecasts for Stellar’s future price movements:
- BeInCrypto analyzed XLM’s price charts from January 2015 to March 2018 and projected that XLM could reach around $45 by December 2020.
- WalletInvestor, using trend and technical analysis, predicted a Q4 2020 price of $0.0165.
- Another automated forecasting service suggested a continued decline toward $0.028 by the end of 2020.
- AltPocket experts projected long-term growth, estimating $10 by 2020 and $30 by 2025.
- Crypto Rating forecasted a price between $0.46 and $0.69 between 2024 and 2025, based on 180-day historical volatility.
While predictions vary widely, many analysts remain optimistic about Stellar’s long-term potential, especially if the broader cryptocurrency market continues to grow.
Why Might Stellar (XLM) Rise in Value?
Several factors could contribute to XLM’s future appreciation:
- A strong project team led by Jed McCaleb, one of the co-founders of Ripple.
- Successful integrations and partnerships with companies like IBM, Microsoft, and Wirex.
- The current price appears undervalued relative to Bitcoin’s growth since the beginning of the year, suggesting a potential entry opportunity.
Those interested in the project are encouraged to review Stellar’s development roadmap, which may offer insights for current and future investors. Many believe XLM could reach $1 by the end of 2020 and between $3–5 by 2025.
Stellar is designed to support any type of currency and includes a built-in decentralized exchange for trading various currencies or assets.
How to Purchase Stellar (XLM)
XLM is available on many major cryptocurrency platforms. Those looking to purchase using credit cards (USD, EUR, GBP) anonymously can use services like Changelly.
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Should You Invest in Stellar Lumens?
Most experts agree that Stellar’s market value has the potential to rise periodically. This trend is closely tied to the growing adoption of cryptocurrencies. Users are increasingly recognizing the benefits of Stellar Lumens, considering it one of the most efficient systems available.
That said, due to the volatility of cryptocurrency markets, XLM could experience significant price swings. For the token to reach $100, the entire crypto market would need to grow substantially.
Tokenomics and Supply
Stellar Lumens was launched on July 31, 2014. The current circulating supply is 20,077,575,795 XLM.
Frequently Asked Questions
What is Stellar Lumens used for?
Stellar Lumens is used for fast and low-cost cross-border transactions, tokenization, and as a bridge currency for asset exchanges on the Stellar network.
Is Stellar a good long-term investment?
Many analysts are optimistic due to its strong technology, enterprise adoption, and active development. However, like all cryptocurrencies, it carries risk and volatility.
How does Stellar differ from Ripple?
While both aim to facilitate cross-border payments, Stellar focuses on individual users and low-income markets, whereas Ripple often targets large financial institutions.
Can Stellar reach $10?
Some predictions suggest it could reach double digits in the long term, but this would require widespread adoption and favorable market conditions.
Where can I store Stellar safely?
XLM can be stored in various wallets, including hardware wallets like Ledger, desktop wallets, and official Stellar wallets.
What factors influence Stellar’s price?
Key factors include market sentiment, technological developments, regulatory news, partnership announcements, and overall crypto market trends.
Disclaimer: This article is not financial advice. The cryptocurrency market is highly volatile and subject to sudden fluctuations. While price analysis can be informative, it should not be considered predictive of future performance. All investors should conduct their own research, consider multiple perspectives, and comply with local regulations before investing.