Every cryptocurrency wants to be the first digital currency accepted worldwide. Stellar Lumens is already on its way after some landmark business deals with organizations in Ukraine, Bahrain, Germany, and more.
Pay attention, because more partnerships like these could push the Steller Lumens price to $6 by 2025. That's 1,478% from today's price.
You don't want to miss it.
Cryptocurrency took a significant dip in the last year, with the Bitcoin price falling as much as 42%, from an all-time high above $63,000 to $36,000. Stellar Lumens dropped about 50% in May as well.
Many crypto bears say it spells the end of cryptocurrency. But don't get all bent out of shape over those Elon Musk tweets. Crypto is here to stay. And there's still the matter of which coin will be king.
Stellar Lumens is one of those top coins vying for the throne. Today, we give you a Stellar Lumens price prediction that reflects that. It sounds outrageous, but it could make even more sense than a $1 million Bitcoin with what we're seeing...
One thing is certain about crypto right now - it's highly volatile. Stellar Lumens is no exception. But it also has significant catalysts that other coins don't. These have given Stellar the staying power to last the recent months of crypto downturn.
Before we show you this Stellar Lumens price prediction for the next five years, here's what you should know about the coin.
What Is Stellar Lumens?
Stellar Lumens is an open-source blockchain platform on which the Stellar Lumens cryptocurrency is traded. It was founded by Jed McCaleb, a co-founder of Ripple (XRP).
What separates Stellar Lumens from other cryptos is a combination of speed, security, and cost-effectiveness in transactions. Usually, if someone complains about a cryptocurrency, it's because it lacks one of these three things. That would make Stellar Lumens a must-buy on paper.
Stellar Lumens' market cap is just under $9 billion, which pales in comparison to Ethereum's (the biggest altcoin out there) $305 billion. However, that still puts it in the top 20 cryptocurrencies by market cap.
Comparing the trading volume of these coins, you get $900 million and $32 billion, respectively. And yet, Stellar Lumens still trades more hands than thousands of other cryptos out there. In fact, Stellar Lumens grew from 244,000 accounts to 4 million from 2018 to 2020, and it keeps growing.
Why Everyone Like Stellar Lumens
What makes Stellar Lumens so efficient is its "Stellar Consensus Protocol." It was one of the first cryptocurrencies to create a means of securing its network that did not use proof of work like Bitcoin and Ethereum. The protocol makes it so that nodes can quickly "vote" on what history on the blockchain is legitimate.
Because the Consensus Protocol is leaderless and virtually automated, it's cheaper and faster. It takes less than a second to perform a transaction, whereas Bitcoin can take anywhere from 10 minutes to 1 hour.
This is likely why Stellar Lumens is able to lead the way striking deals with companies and countries around the world.
One example is that it is the first blockchain product OK'd under Sharia Law in Bahrain. And there are many others...
What's Moving the Stellar Lumens Price
A ban on cryptocurrency in China and some tweets from Elon Musk brought doom and gloom to the entire crypto market. But there is light ahead.
Stellar Lumens is still up around 425% for the year. And it could go much higher if these things pan out...
Recently, the company set itself apart with some new international partnerships. These put Stellar Lumens on crypto investors' radars once again as a top altcoin.
It helped that Ripple (XRP), a direct competitor of Stellar Lumens, encountered legal trouble and was thrown off the Coinbase crypto exchange (the Ripple price struggled as a result, and its future is still in question).
The Secret to Crypto Windfalls
Starting with $1,000 and cashing out with potentially tens of thousands in the bank in a few short years can be very simple.
The Secret to Crypto Windfalls
Starting with $1,000 and cashing out with potentially tens of thousands in the bank in a few short years can be very simple.
Of course, what drives these partnerships and what will ultimately determine the price of Stellar Lumens is the effectiveness of its protocol. And organizations around the world appear to prefer that protocol.
Crypto traders have been waiting to see which coin will first be accepted as legal currency by governments, and Stellar has come closer than most. The Ukrainian government wants to work with Stellar to digitize its money.
If Stellar Lumens results in the creation of a central bank digital currency (CBDC), it will be the first to do so. It would be a huge boost for cryptocurrency overall and would drive Stellar Lumens to the top of the food chain.
Another recent key partnership for Stellar Lumens was with a German real estate company called Vonovia. Vonovia will use Stellar Lumens' blockchain as the basis for a new debt security it's issuing. The shares will be located directly on the Stellar Lumens blockchain.
Basically, people will invest in this security, in the seconds it takes to transact Stellar Lumens, allowing Vonovia to quickly and easily raise money via the Stellar Lumens blockchain. Many institutions, including the German bank M.M. Warburg, have already expressed their demand for shares.
Stellar Lumens also partnered with tech giant IBM (NYSE: IBM). IBM built its Blockchain World Wire on top of the Stellar Lumens blockchain. World Wire allows financial institutions to serve its customers with faster cross-border payments and foreign exchange transactions.
Clearly Stellar Lumens has achieved far more than most other cryptos. That's why the future looks so bright for this coin.
Stellar Lumens Price Prediction for 2025
When we look at the price of a cryptocurrency, we primarily want to know what it does.
We also want to see if it has trading volume. If its market cap and trading volume grow together, that is a good sign.
Good past performance doesn't tell the whole story, but it can bolster the prediction for a cryptocurrency price with a novel function and solid trading volume.
There have also been a few positive partnerships and other real-world trends fueling Stellar.
All of these things suggest that Stellar Lumens is due for a pop in the coming years.
Stellar Lumens ultimately gets a positive outlook for 2025, as it makes progress on all fronts - transactability, trading volume, public acceptance, and a useful protocol.
Analysts seem to agree across the board.
The website Coin Price Forecast gives the coin a target of $1.50 in 2025. That is a 294% gain from today's price of $0.38.
Digital Coin Price gives Stellar Lumens a slightly higher target of $1.70 by 2025, or a 347% gain.
And finally, a blog called Primexbt puts the coin at $6 in the next five years. That's a whopping increase of 1,478%.
The coin is down significantly from its all-time high of $0.70 right now. But it has found solid support over the $0.35 level since February 2021.
Ultimately, Stellar Lumens is one of the strongest cryptos out there, and the general consensus is that its holders will see gains in the next five years. It has weathered the storms of a massive 2018 crypto dip and a 2020 pandemic.
If we are to expect a bull market in the next couple of years, Stellar will rise with that tide.
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But ETH is just one of many – these even smaller coins share the same DNA structures as coins like Ethereum: Coin no. 1 is up nearly 40% in the last 24 hours.
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About the Author
Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.