Stellar lumens price prediction: Is XLM a good investment?
XLM has got crypto investors talking, so what is the stellar lumens price prediction?
Contents
- From the Stellar Lumens white paper
- Stellar Lumens price history: Early days
- Stellar Lumens price history: Going up in 2021
- Stellar lumens price history: Decline, fall, recovery?
- Stellar Lumens price prediction 2022 and beyond
- FAQs
Stellar lumens (XLM) started off as a hard fork of Ripple’s XRP cryptocurrency, but since then it has become a key part of many crypto investors’ portfolios. In this article, we will take a look at some stellar lumens price predictions to see if we can learn anything.
Before we do that, though, let’s first take a look at the coin’s history. While past performance is no guarantee of future results, it can help give us some context for any and all XLM price predictions.
From the Stellar Lumens white paper
The “Stellar Consensus Protocol: A Federated Model for Internet-level Consensus” founding document is 32 pages long and was published by David Mazières, co-founder of Stellar.
The white paper states: “Financial infrastructure is currently a mess of closed systems. Gaps between these systems mean that transaction costs are high and money moves slowly across political and geographic boundaries. This friction has curtailed the growth of financial services, leaving billions of people under-served financially”.
“To solve these problems, we need financial infrastructure that supports the kind of organic growth and innovation we’ve seen from the Internet, yet still ensures the integrity of financial transactions.”
Mazières explains: “A compelling alternative is a decentralised system in which participants together ensure integrity by agreeing on the validity of one another’s transactions. Such agreement hinges on a mechanism for worldwide consensus.”
Stellar Lumens price history: Early days
When the currency launched, back in 2014, it was worth around $0.003. As a new crypto at a time when far fewer people had any knowledge of the subject, it would have been pretty much expected to stay, if not at that level, then certainly at a very negligible amount – and such was indeed the case for the first few years of XLM’s existence.
In fact, the coin did not break through the cent barrier until May 2017, nearly three years after it started trading on the open markets. Nevertheless, there was some modest growth. This all started to change towards the end of the year: Late 2017 and early 2018 was perhaps the first real boom time for the crypto market, and stellar lumens was caught up in the excitement.
The coin reached $0.9381 on 4 January 2018, a figure which still serves as the crypto’s all-time high. That high was, ultimately, not to be sustained, and the price of XLM soon fell back. It spent much of the rest of 2018 between $0.20 and $0.40, before dropping back under $0.20 towards the end of the year.
In 2019, it spent most of the year under $0.10. Not even the news, in November, that the Stellar Development Foundation was to burn a large sum of XLM that was enough to raise it from the depths to which it had sunk.
2020 saw more of the same, and the price of stellar lumens stayed low through most of the year. That was until 21 November, when it finally broke back through the $0.10 barrier. This was good news for XLM holders, who were about to go on a journey of growth. The price of the crypto stayed somewhere around the $0.10–$0.20 range for much of the remainder of 2020, closing the year at $0.1284.
Stellar Lumens price history: Going up in 2021
Things started to heat up in 2021. The early months of last year were as much of a boom time as the late 2017 and early 2018 bull market, if not more so, and XLM was as involved in it as anyone.
At first, growth was comparatively slow, but things really kicked off on 6 January. The price of XLM nearly doubled in a matter of hours, going from an intraday low of $0.1942 to an intraday high of $0.3835. The following day saw an intraday high of $0.4023 before settling back to a close of $0.3158. The rest of the month saw the price hovering around the $0.30 mark before closing at $0.3057, a rise of more than 138% over the course of the month.
There was further growth in February, with an intra-month high of $0.6008 on 13 February coming before a slow spiral down to close the month at $0.4067, a month-on-month rise of 33%. While this was nothing like January’s bullishness, it was still encouraging for a stellar lumens prediction.
What is your sentiment on XLM/USD?
After two months of substantial growth, things came back down to Earth and started to get a bit more normal in March. The intra-month high, $0.438 on 3 March, looked fairly weak compared with what happened in February, and XLM spent a decent chunk of the month below $0.40 before finishing the period at 0.4109, just over 1% more than at the end of February.
April was much stronger, with stellar lumens hitting a high of $0.6898 on 14 April and closing more than 28% higher than it had been a month earlier at $0.5295.
Stellar lumens price history: Decline, fall, recovery?
May was a month where everything changed, and the great crypto day crash of 19 May hit stellar lumens pretty forcefully. At first, though, things seemed to be going well.
The coin reached $0.7965 on 16 May before circling back down to an intraday high of $0.6563 on 19 May. The crash initially hit the coin hard, with it dropping down by more than half to $0.3035. There was some recovery and it closed the day at $0.4504, but the price continued to shuffle down and it closed the month at $0.4034, down more than 23% month-on-month.
The post-crash withering of the crypto market over the summer of 2021 was reflected in June by XLM, which closed the month down more than 28% at $0.2830, while July saw the smallest of recoveries to $0.2857, up less than 1% from a month earlier. August was more encouraging, with the coin closing the month at $0.3048, up more than 6%, while September saw more bad news, down by more than 8.5% to $0.2788.
On the other hand, October and early November was a period of substantial recovery, with the coin meeting a new five-month high on 10 November, valued then at $0.43. However, this upward trend was not to last. The stellar lumens price stood at around $0.39 on the afternoon of 9 November, with further losses towards the end of the year: The coin hit an intraday low of $0.32 on 2 December and fell further to $0.25 on 19 December.
The volatile period continued throughout December and January, and by 22 January 2022, the coin was trading at lows of $0.17.
However, Stellar Lumens appears to be on a minor rally as of 9 February. Trading up 2.21% from the previous day, the coin is currently trading at above $0.24. According to data published by DigitalCoinPrice, the shorter-term technical indicators such as the EMA and SMA suggest buying, but the RSI is indicating a sell position. The general sentiment as per the data is a buy position, with nine indicators suggest selling, seven suggest holding and 10 suggest buying.
Stellar Lumens price prediction 2022 and beyond
With that out of the way, let’s take a look at some XLM price predictions. Keep in mind that many crypto forecasts are made via algorithms, and that predictions are often wrong in any case.
Firstly, WalletInvestor’s stellar lumens price prediction suggests that the coin will be up to $0.39 in a year, and breakthrough the dollar barrier in early 2027.
DigitalCoinPrice’s XLM price prediction says that it will exceed $1 in 2029. The site suggests the coin will be worth $0.37 in February 2023, $0.36 in February 2024, $0.52 in February 2025. In five years’ time, says DigitalCoinPrice, the coin will be worth $0.53. The XLM price prediction goes as far as December 2029, when the coin is valued at $1.06.
Finally, Gov.capital suggests that XLM has a one-year projection of $0.38 and a very optimistic five-year projection of $2.067. The site believes the coin will break the $1 mark in August 2024.
FAQs
It might be – the coin certainly performed very well in 2021, increasing in value from $0.13 at the beginning of 2021 to closing the year at $0.27.
That said, you do need to be cautious: Remember that cryptocurrencies can be highly volatile and prices can go down as well as up. You will need to do your own research and should never invest more than you can afford to lose.
It is hard to say for sure. The algorithm used by Gov.capital suggests the coin could reach $2.067 over the next five years. Remember, though, that forecasts are always speculative, and often wrong. Be very careful when taking them into account.
This is entirely a matter for you to decide. Whether you feel like you should buy the crypto or not, you will need to do your research, remember prices can go down as well as up, and never invest more money than you can afford to lose.
