Stellar Lumens (XLM) is the native cryptocurrency of the Stellar network, a blockchain platform that allows the exchange of digital to fiat currency.
Servers around the world record and store all transactions on the Stellar network. The network's capability of international transactions involving any two currencies has investors closely following every new XLM price prediction.
On the user side, the Stellar network and XLM are especially popular among those without access to traditional banking. Through Stellar, the unbanked are able to store wealth and make transfers at extremely low costs.
Investors are often attracted to penny cryptocurrencies such as XLM because they offer an inexpensive way for new investors to get started investing in crypto, while at the same time offering potentially huge profits to experienced traders who can anticipate the next big upward swing and properly time their investment.
In order to maximize profits on any cryptocurrency, it is important to know how and why the coin was developed, the coin's price history, and what makes it stand out in the crowded field of alt coins.
Today, we're looking at the allure of Stellar Lumens and why it could be a worthwhile addition to your portfolio.
What Is XLM?
According to the World Bank, 31.5% of the world's population is without access to a bank.
The main goal of the Stellar network is to provide access to financial services to people across the globe, regardless of their income level. Powered by blockchain, the platform is able to offer a decentralized service without any owner that is a faster and less expensive way of sending and receiving money.
At the launch of the Stellar network, its native crypto was known as Stellar, but the name was later changed to Lumens (XLM).
Stellar Lumens' price prediction has been a popular discussion since the network debuted in 2014, especially among those who see Stellar as an opportunity to make a big impact on the almost one-third of the global population that otherwise is shut off from traditional financial services.
In addition to its appeal to impoverished people without bank access, Stellar has caught the eye of financial institutions, banks, and larger enterprises. The network's ability to easily handle micropayments (transactions involving small amounts of money made online), access to mobile banking, and low remittance and transaction costs have all generated such interest.
XLM investors see a future of further adoption by financial institutions and big banks as the Stellar network extends its reach into more developing countries, pushing the coin's value higher.
XLM Price History
On Sept. 15, 2014, shortly after its initial coin offering (ICO), XLM was valued at $0.003. A few months later, in November, XLM dipped to its all-time low of $0.001227. Over the following three years, XLM fluctuated between $0.001 and $0.003.
In May of 2017, XLM briefly reached what was then an all-time high of $0.05 before retracing to $0.01. However, big things were in store for XLM - and crypto in general - over the remainder of the year...
Bitcoin broke $10,000 for the first time by December, and altcoins followed the upward trajectory, including XLM, which at one point gained more than 50% overnight. On Jan. 4, 2018, XLM reached its all-time high of $0.938144.
XLM began 2020 valued at $0.0451 and spent the early part of the year fluctuating between $0.05 and $0.06 before starting an upward trend in July. Eventually, the coin reached $0.118987 in mid-August before settling around $0.08 in early September.
Smart investors who keep up to date on news and fluctuations to make an accurate XLM price prediction can stand to make big profits. Those who bought at the beginning of 2020 could have doubled their money by the end of the year, while those who bought at the ICO would have seen a 2,615% return.
Reasons to Consider Investing in XLM
There are a lot of cryptocurrencies to choose from for those looking to invest. So, before buying, it is important for investors to take into account what makes a coin unique and what could lead to its further adoption. When looking at Stellar Lumens, there are a few factors that could be enticing to crypto investors.
One of the biggest draws to XLM in its early days was the fact that it was founded by an influential crypto pioneer, Jed McCaleb, who first rose to prominence in the cryptocurrency sphere as the founder of Mt. Gox - one of the earliest Bitcoin exchanges, which at one point handled as much as 70% of the world's Bitcoin transactions.
In addition to founding Mt. Gox, McCaleb was also a co-founder of Ripple. XRP, the native coin of the Ripple network, is the third largest cryptocurrency in terms of market capitalization.
Stellar Lumens' connections to Ripple don't end there; XLM has been compared favorably to XRP by some investors due to the fact that they both offer similar services but Stellar is more decentralized than Ripple. Further decentralization is currently a hot trend in cryptocurrency.
Another reason for optimism when it comes to a Stellar Lumens price prediction is the platform's ambition and partnerships that hint at further expansion...
While Stellar's primary goal is to appeal to the unbanked and democratize access to financial services, it also is appealing to traditional banks and companies. This can be seen in banks such as Bank of America and RBC using the technology as well as enterprises such as IBM, Deloitte, SatoshiPay, and others being associated with the network.
Of particular note is the association with IBM, which has a $1 billion AUD technology contract with the Australian government. Should cryptocurrency adoption grow in Australia, IBM's contract could give XLM a boost.
What is known for sure is that XLM is affordable and fast. The network can handle 1,000 transactions per second at less than $0.01 each. This is significantly quicker and less expensive than most major cryptocurrencies, increasing the chances that it could achieve widespread use.
Add on the fact that XLM can be traded anywhere on the planet in less than five seconds, and you have a coin with great reach and great potential.
Interesting XLM Price Predictions
Investors hoping to earn a passive income with cryptocurrency need to stay on top of the latest Stellar Lumens price predictions, as well as those of other coins, to know where to allocate their money and when to buy and sell. Below we'll look at some of the more noteworthy recent XLM price predictions.
Crypto Rating looks at trading volume and shifts in supply and demand to assess future returns. The site notes XLM's standing as 18th in market capitalization (with a current price of $0.07 and market cap of $1.48 billion), as well as its significant increase over the past year to issue a prediction of $0.46 in 2021 and $0.69 by 2025.
A particularly bullish XLM prediction from CoinSwitch sees the coin reaching $1 as soon as 2025. The reason cited for the potential 1,328% increase is Stellar's association with IBM and, in turn, its partnership with the government of Australia.
CryptoGround, which uses a deep learning neural network to predict price trends, sees XLM breaking $0.20 in mid-2021 and continuing an upward trajectory over the next five years. Although it doesn't foresee quite the same highs as CoinSwitch, it does see XLM hitting $0.74 by 2025. That's a potential increase of 957%.
Crypto investors who truly have their finger on the pulse of the market are able to successfully anticipate price fluctuations and can score big returns by swing trading. On the other hand, some are willing to buy early and hold, looking for the price to rise year after year.
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