Stellar Lumens price prediction: Is XLM a good investment?
XLM has got crypto investors talking, so what is the Stellar Lumens price prediction?
- From the Stellar Lumens whitepaper
- 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
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 the latest Stellar Lumens price predictions to see whether we can learn anything. Before we do that, though, let’s examine 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 whitepaper
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 whitepaper 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 that 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 was enough to raise it from the depths to which it had sunk.
For 2020, it was more of the same, with the price of Stellar Lumens staying low throughout 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 any other crypto.
At first, growth was comparatively slow, but things really kicked off on 6 January 2021. 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 2021, 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.
After two months of substantial growth, things came back down to Earth and started to normalise in March. The intra-month high, $0.438 on 3 March 2021, looked fairly weak compared with what happened in February. XLM spent a decent chunk of the month below $0.40 before finishing the period at $0.4109, just 1% more than at the end of February.
April 2021 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 2021 was a month when 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 2021 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 2021 was a period of substantial recovery, with the coin meeting a new five-month high on 10 November, being valued then at $0.4403. However, this upward trend was not to last. The Stellar Lumens price stood at $0.3339 on the afternoon of 29 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 2021.
The volatile period continued throughout December, with XLM closing the year at around $0.27, while January 2022 saw the coin close at just under $0.20. February 2022 started well, with XLM topping $0.25 on 8 February, but Russia’s invasion of Ukraine caused a downturn which saw the coin drop to a low of $0.16 on 24 February 2022.
The price then remained largely the same until, on 7 March, it fell to a 30-day low of just under $0.17. After that, the market started moving up and XLM moved with it, closing the month at a little under $0.23. The coin then declined to less than $0.19 on 11 April 2022.
After that it headed in a cautiously upwards direction and, on 19 April, it was worth a little over $0.20, before it went on a downward slide. By 6 May 2022, the intraday low was $0.1657. The coin suffered in the wake of market turmoil caused by the depegging of UST and the collapse of the associated LUNA cryptocurrency and, on 12 May 2022, it fell to a low of $0.1067 before it started to recover, reaching $0.1375 on 23 May.
There was more growth to a post-crash high of $0.1529 on 31 May, before it fell back somewhat to stand at around $0.1462 on 6 June. Following that, the cancellation of withdrawals on the Celsius crypto lending platform confirmed a bear market, and the price of XLM continued to fall, hitting lows of $0.1008 on 14 and 18 June 2022.
From there, the coin struggled its way upwards, reaching a high of $0.1299 on 26 June. Following that, though, the overall direction of movement was down and, on 13 July it dropped to a low of $0.09928. There was some recovery after that, albeit with peaks and troughs, and the news of its listing on the Robinhood platform saw it reach $0.1375 on 8 August.
After that, though, it was back down and on 16 August 2022 it was trading at around $0.122. At this time, there were 25.25 billion XLM in circulation out of a total supply of a little more than 50 billion, according to CoinMarketCap.
This gave the coin a market capitalisation of just over $3bn, making it the 27th largest cryptocurrency by that metric.
Stellar Lumens price prediction 2022 and beyond
Now 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.
First, WalletInvestor’s Stellar Lumens price prediction suggests that the coin will be worth $0.166 in August next year, and trade at somewhere around $0.32 in August 2027.
DigitalCoinPrice’s XLM price prediction suggests that it will reach $0.16 in 2022 before hitting $0.19 in 2023, and then $0.23 in 2025. It should dip slightly the following year to $0.22. Its Stellar Lumens price prediction for 2030 forecasts an XLM price of $0.56, with a rise to $0.63 the following year.
Finally, Gov Capital has a Stellar Lumens price prediction for 2022 that says it will reach around $0.115 at the end of the year. It also has a one-year projection that says XLM can reach an average of about $0.40057 on 16 August 2023, and a very optimistic five-year projection of somewhere around $1.96 on the same date in 2027.
The site gives a Stellar Lumens price prediction for 2025 that suggests the coin is likely to break the $1 mark by August that year.
Is Stellar Lumens a good investment?
It might be. The coin certainly performed very well last year, increasing in value from $0.13 at the beginning of the year to close 2021 at $0.27. While it was worth less than that at the time of writing (16 August 2022), it at least had the potential for recovery.
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 need to do your own research and should never invest more than you can afford to lose.
How high can Stellar Lumens go?
It is hard to say for sure. The algorithm used by Gov Capital suggests the coin could reach as high as a little over $2.27 over the next five years, if the most optimistic prediction holds true.
Remember, though, that forecasts are always speculative, and often wrong. Be very careful when taking them into account.
Should I buy Stellar Lumens?
This is entirely a matter for you to decide. Whether you feel like you should buy the crypto or not, you need to do your own research and remember that cryptocurrencies are highly volatile, and prices can go down as well as up.
Never invest more money than you can afford to lose.