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Stellar Lumens (XLM) Quick Overview
Stellar Lumens (XLM) is a decentralised and open-source protocol used to enable citizens of any country to send and receive money, property or other assets quickly, cost-effectively, and securely. It’s most popular application is its decentralised exchange which works with all assets, not just its native token XLM. The cryptocurrency XLM has grown to have a large user base, reaching the top 10 in market capitalization of cryptocurrencies worldwide. Among the many use cases of Stellar Lumens, it is speculated that one day it will be used as a universal payments system for e-commerce transactions.
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Experts generally agree that the concept behind Stellar Lumens (XLM) is revolutionary and could bring about positive change in the world, but there is a debate about how successful this will be in practise. While proponents say that being backed by IBM and other big players gives XLM more credibility on entering the mainstream markets than other digital currencies, opponents argue that IBM’s backing doesn’t necessarily mean anything when XLM’s success isn’t guaranteed. However, those in favour of Lumens’ potential point out that since 2013 when it was created by Jed McCaleb and Joyce Kim, its transaction volume has reached millions each day.
Both sides seem to agree that XLM stands to benefit from adoption by large companies – even Microsoft’s Xbox team has planned to integrate Stellar into its platform. Furthermore, bullish investors point out that large banks are using Stellar’s network for cross-border payments while others think this leaves some room for speculation in its future price action.
Wherever you fall on the spectrum of opinion, what’s clear is that while some predictions give way too high expectations of the coin in 2023, others might underestimate its growth. To see if these bold assertions come true, let’s move on to examining expert forecasts on where they see XLM’s price go over the next three years.
XLM Price Forecasts by Analysts
Analysts have been divided in their forecasts for XLM’s price in 2023. On one side, there are some who remain bullish on Stellar Lumens and see it as a cryptocurrency with enormous potential due to its use of blockchain and rapidly expanding development team. They believe that if Stellar Lumens continues to be adopted by businesses and complete the upgrades planned for this year, the currency can potentially reach a new all-time high in market capitalization by 2023.
On the other side, there are analysts who are more conservative when predicting the price of XLM and maintain that the impact of global macroeconomics and geopolitics will play a major role in driving demand for cryptocurrency in general. They point out that if governments move to control or even ban digital assets, the value of Stellar Lumen may dip significantly due to lack of investor trust. As an example, they point out the recent crypto-bans enforced by some countries such as China and India.
The debate between these two perspectives has been ongoing with no clear resolution yet. While some analysts predict significant growth over four years from now, others are much more conservative in their estimates. Despite all of this, one thing is certain; where there is volatility there is also opportunity for investors to make a profit. With the right kind of foresight and analysis, those who stand to gain from trading XLM might be able to capitalise at the right time and make good returns for themselves in 2023.
It is too soon to make any definitive predictions about Stellar Lumens’ future prices. However, by closely monitoring their development progress and keeping track of geopolitical events we can begin to form our own estimates about what range of returns we could expect come 2023. The next section will take an in-depth look at potential price ranges for XLM as predicted by many sources close to the cryptocurrency’s development team.
- According to CoinCodex, the highest price of Stellar Lumens (XLM) was $0.169352 on February 24th 2020.
- A study by CryptoCompare found that the average XLM price for 2020 was $0.056123.
- According to financial research firm Finder, the predicted XLM price for 2021 is around $0.097126.
Potential Price Ranges for XLM
When it comes to predicting the price range for XLM, analysts offer a wide variety of views. Some have predicted that the cryptocurrency will reach its previous all-time high of around $1 by 2023, while others believe that it could reach double that value or more. The reasoning behind these optimistic predictions mainly comes from the fact that Stellar Lumens is now becoming increasingly popular as a platform for ICOs and as an alternative to Ethereum.
On the other hand, some analysts point out that factors such as Bitcoin’s momentum, fluctuations in the overall crypto market, and increased competition between blockchains make it difficult to predict where exactly the price of Stellar Lumens will end up during the next few years. Despite this uncertainty, there have been increasing efforts by Stellar developers to make the platform appear more attractive by adding features such as enhanced security protocols and partnerships with powerful institutions like IBM.
Thus, depending on how things pan out in the next few years, we could see either of these two scenarios play out- a return back to pre-2018 highs at around $1 or far higher values due to increased demand for what Stellar offers. To find out which of these predictions turn out true, we must keep an eye on how adoption rates change and if improved features can help Stellar stand out from the competition.
Nonetheless, one undeniable fact remains- whether XLM reaches its earlier all-time high or not, its underlying technology is well-placed to capitalise on many current industry trends and take advantage of recent advancements in blockchain technology moving forward. As we delve deeper into why this might be and what potential drivers could impact its future value, let’s examine what is potentially driving the price of XLM.
What is Driving the Price of XLM?
The price of XLM is being driven by a variety of different factors. Many industry analysts are attributing the recent rise in its price to an increase in adoption and usage of Stellar’s blockchain technology for various applications. For example, Stellar’s growing list of partnerships, including IBM and Dfinity, demonstrate the increasing popularity of the network among businesses. Additionally, the launch of several new decentralised applications (dApps), wallets, and exchanges on Stellar’s platform have also helped to drive its price up.
Furthermore, many large investors have also entered the cryptocurrency markets, particularly since late 2017 when digital assets surged in value. The influx of major players has provided additional leverage and liquidity to boost XLM prices as well. In addition, rumours that Facebook is looking to implement some form of digital asset underpinned by XLM have also been a contributing factor to its rising price.
On the other hand, some analysts argue that speculation can be credited with much of the short-term volatility experienced within the market. As such, they suggest that the current levels may not be sustainable over the long run given the potential risk posed by regulatory measures from certain government entities.
Nonetheless, it remains clear that various factors are contributing to its upward trend which could ultimately result in XLM reaching its all-time high over the coming years. As more people adopt this technology for mainstream usage and larger investors continue piling into digital assets as a whole, we may soon see Stellar Lumens reach its peak valuation yet. With this being said, it is important to understand how current trends in the market could impact XLM’s performance before making any long-term investments decisions involving it. To do this, let us now analyse some of these key factors and see what they might mean for XLM’s future upside potential.
Trends and Current Situation in the Market
The crypto market as a whole is in constant flux, with nearly all of its components driven by speculation. As such, the movements seen in XLM’s price depend largely on the sentiment of traders, investors and the general public alike. Looking further into the current situation, it can be said that the cryptocurrency markets are currently subdued after their 2019 peak, but XLM appears to be outperforming this trend due to its technology being used to power a range of financial applications being developed on its network. In addition to this, Stellar’s strengths include its liquidity ratio due to its low transaction costs as well as its low energy consumption compared to other proof-of-stake coins such as Ethereum.
On the other hand, many sceptics remain concerned with development momentum or stagnation depending on which side one takes. While some developers from the Stellar community have resumed working on projects, there has not been sufficient progress made to increase demand for XLM overall. Some have pointed to the uncertainty of regulation in certain key markets as another concern for any kind of long term investment in XLM – with varying opinions on how big of an effect this may have.
Overall, XLM is a complex asset and must be understood not only on technological or economic grounds but also from a fundamental perspective if one expects to achieve real gains from investing. It will be important to pay attention to any upcoming news relating to developments within stellar’s ecosystem as well as sentiments regarding regulations globally when it comes to cryptocurrencies. With these in mind, investors need consider all the pros and cons before venturing into investing in any cryptocurrency — including XLM — when deciding whether it makes sense for them or not. With this thought process in place, let us delve into exploring some of those pros and cons associated with investing in XLM in the next section.
What are the Pros and Cons of Investing in XLM?
When it comes to investing in cryptocurrency, there is no one-size-fits-all answer. Different investors have different portfolios and risk tolerances, and may have different opinions on the value of certain cryptocurrencies. XLM is no exception—there are both pros and cons to investing in this cryptocurrency.
The primary pro of investing in XLM is that it has the potential for significant price appreciation. Stellar Lumens had a market capitalization of over $5 billion as late as January 2021, which places the cryptocurrency among the top ten cryptos by market cap. Furthermore, the coin’s value has skyrocketed since its launch in 2014, when it was priced at just over ‘0’. In recent months, its value has surged nearly 600%. As such, it appears to be well-positioned for further growth over the next years.
Nevertheless, investors must also consider the potential for risk when investing in cryptocurrency, including XLM. Cryptocurrency is an incredibly volatile market that can quickly swing from gains to losses and back again in a matter of hours or days. This high volatility can be stressful for many investors and can lead to significant losses if predictions prove inaccurate. Additionally, many countries have yet to adopt XLM as widely accepted currency due to its decentralised nature—this could lead to liquidity issues should one wish to sell their holdings down the line.
Given these pros and cons, those interested in investing in XLM should proceed with caution and carefully weigh their options before committing funds. While investing in cryptocurrencies generally carries an element of risk, there are promising indicators that suggest a bright future ahead for Stellar Lumens — making it worth further investigation by investors who are willing to take calculated risks.
