Thanks to its approach and technology behind the project, Stellar has been among the best-performing altcoins for the last five years despite some bad periods. Several specialists believe this cryptocurrency is a profitable long-term investment. We invite you to read the following Stellar coin price prediction for the coming years.
What Is Stellar (XLM)?
Stellar is a cryptocurrency that trades as XLM. The project behind it was launched in 2014. Initially, the project aimed to use blockchain technology to offer financial services to unbanked people. Later, the goal shifted toward a platform that helps financial companies connect via blockchain technology.
The XLM token facilitates and reduces the costs of cross-border transactions. This feature makes the Stellar platform competitive against traditional payment systems. Originally, Stellar was based on the Ripple Labs protocol. Later, the code for Stellar’s blockchain was rewritten.
After the bullish run of 2017, XLM became one of the most popular cryptocurrencies. It was ranked among the top ten digital coins by market capitalization for some time. It was considered one of the safest investments at the moment. Unfortunately, XLM didn’t keep its position among the top cryptocurrencies.
However, XLM is bouncing back. Despite its poor performance in recent months, this coin has sparked hope among investors. In this guide, we aim at providing a reliable Stellar coin forecast. The XLM future price predictions herein are based on an in-depth technical analysis of the performance of this crypto.
Historical Price Analysis of Stellar (XLM)
Should I invest in Stellar? The answer to this question requires a thorough analysis of the price performance of this coin. Such an analysis can lead to a reliable forecast. The total supply of XLM is slightly over 50 billion coins. Such a large supply forces the price of an XLM coin to be relatively low.
The lowest price reached by this coin has been below $0.002. Since its inception, the XLM price had fluctuated around that value. However, it all changed dramatically in January 2018. XLM reached its all-time high at $0.9381 on January 4, 2018. But XLM failed to maintain this price level. By the end of 2018, it traded at $0.09.
In the following year, 2019, XLM did not show any sign of recovery. This cryptocurrency gained a reputation as a bad performer. It reached a local high of $0.16 and a low of $0.04.The year 2020 was not good either. The low in 2020 was $0.03. At this point, several investors had lost confidence in Stellar's future. But by the end of 2020, this coin showed explicit bullish behavior. It continued through the first half of 2021. On May 10, 2021, XLM reached $0.73. This event sparked enthusiasm, and many investors regained hope.
The XLM price dropped to $0.2124 on July 19, 2021. However, by September 5, it traded at $0.4234. The XLM price fluctuated between $0.25 and $0.41 during the last three months of 2021. It ultimately closed that year at around $0.26.
The crypto winter of 2022 negatively impacted the XLM price. This coin went from $0.27 on January 1, 2022, to $0.07 by the end of that year. As of January 16, 2023, the XLM price was approximately $0.09.
How high will Stellar go from now? Will it reach a new all-time high? Our following Stellar coin price prediction provides some answers
Stellar Technical Analysis
Our analysts have reviewed trend lines and chart patterns, among other indicators, to gain some insight into Stellar's future. This cryptocurrency has been available in the market since 2016. Hence, we can consider XLM relatively new and in price discovery mode. It means that the price of this cryptocurrency will still show a high level of volatility. The Stellar's potential to set new all-time highs is undeniable. However, it can set several record lows as well.
Factors that Influence the Prices of Stellar (XLM)
First and foremost, the price of XLM is driven by speculation. However, several benefits of this cryptocurrency can influence the price of XLM favorably:
- Stellar utilizes the Stellar Consensus Protocol, which doesn’t require that each participant confirms all transactions in a network. This consensus algorithm makes Stellar a fast network. Transactions take a few seconds only.
- Each transaction costs 0.00001 XLM only. This cost is extremely low, making Stellar highly competitive against remittance and banking services.
- Stellar is the main competitor of Ripple (XRP). Although Ripple is quite popular, Stellar has the technical capabilities to outperform its closest competitor.
- Stellar has forged strategic partnerships over the years. Arguably, the most important partnership so far is with IBM’s Blockchain World Wire.
- Stellar uses smart contracts that are among the safest and most reliable in the industry.
Whether these factors will play a role in the future performance of XLM is still to be seen. However, the project is solid and with bright perspectives.
Long-Term Stellar Price Prediction
The long-term Stellar coin forecast is optimistic. The Stellar platform has all the needed requirements to succeed. This coin has survived the crypto winter, albeit with significant losses. With its strategic partnerships and solid technology, Stellar is expected to do well in the coming years.
So, is Stellar a good investment? Is it worth buying it? In the long run, yes. Let’s take a look at the price predictions for different years.
Stellar (XLM) Price Prediction 2025
The bullish trend expected in 2023 will likely continue into 2025. The XLM price will reach a maximum of $0.31 in 2025, averaging $0.28 throughout the year, according to PricePrediction. A more optimistic Stellar price prediction for 2025 by DigitalCoinPrice puts the average price at $0.30, with a possible maximum of $0.32.
Stellar (XLM) Price Prediction 2030
In the long run, XLM will continue to gain value. The average XLM price in 2030 will be $1.74, according to PricePrediction. However, this coin's price could go as high as $2.05 that year. For its part, DigitalCoinPrice forecasts an average XLM of $0.91 in 2030. The cryptocurrency market will be completely different in 2030 from what we know today. Hence, predicting an accurate XLM price for such a distant future is challenging.
FAQ
How to Buy Stellar (XLM)?
XLM is a popular cryptocurrency listed by most exchanges. You can use LetsExchange.io to get XLM. Our platform allows you to swap more than 4,000 cryptocurrencies easily and securely. You can also purchase some cryptocurrencies with fiat money.
What Is the Future of Stellar?
According to most price forecasts, the future of Stellar is promising. This coin will likely show significant growth in the coming years. Although projections vary, most agree that long-term XLM investments will bring good returns.
Should I Invest in Stellar?
It is your decision whether to invest in this cryptocurrency. But according to most price forecasts, XLM could be a profitable addition to your investment portfolio.
Will the XLM Price Go Up or Down?
Most experts believe that the XLM price will go up in the long run. There may be some price drops along the way, but in general, this cryptocurrency will continue gaining value over the years.
Is Stellar a Good Investment?
The XLM price prediction for 2030 indicates this coin is a good long-term investment. A solid project backs it. Although the Stellar project may fail to achieve its goals, this risk is low. However, XLM is more unstable than other cryptocurrencies regarded as safer investments. Hence, it would be best to be cautious with the percentage of your assets that you put into this cryptocurrency.
Disclaimer
Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.