Many experts compare Stellar coins (ticker: XLM) to Ripple coins (ticker: XRP). Does the cryptocurrency Stellar really have a chance to overtake its main competitor, how to earn on XLM, and which XLM exchange to choose to buy these promising coins?
Probably everyone interested in cryptocurrency knows about the platform Stellar Lumens. This is not surprising, because this cryptocurrency is in the 14th place of coins in terms of market capitalization according to the CoinMarketCap rating. How successful will be the investment in the project? What if I buy XLM today? If you want answers to these questions, you’ve come to the right place. The price forecast for 2021 will set the record straight. Just read this article and find out how much will Lumens be worth in 2021?
Сontent of the article:
- How was the coin created?
- Stellar exchange rate forecast for 2021
- The advantages of cryptocurrency Stellar
- Lumens price forecast for 2021
- How to earn on the cryptocurrency Stellar?
How was the coin created?
The Stellar cryptocurrency network was developed in 2014. Initially, it was created as a functional offshoot of the popular Ripple cryptocurrency. At the first stage, the program code and structure of the new coin were based on Ripple. At the same time, in 2015, the currency began to use its own open-source protocol, which can be called an advantage of the platform for third-party developers. At the same moment, stellar coins entered the market, which, after some time, began to be called lumen on the Poloniex exchange.
The situation with the separation of the two cryptocurrency platforms occurred against the backdrop of growing criticism of ripple for its creators’ centralization policy. The argument of ripple’s opponents was the cryptocurrency’s closed code, which prevented them from influencing the rate from the outside. At the same time, the coin was able to combine all the advantages of the progenitor and lose its inherent disadvantages. Thus, we can say that cryptocurrency Lumens will manage to enter the top of the largest cryptocurrencies, as experts of the cryptocurrency market say for the last year.
Stellar exchange rate forecast for 2021
Given the previous quotation dynamics of Lumens cryptocurrency, the forecast in technical terms can only be made bullish. For 2021, these coins should move their historical maximum and take a new growth peak. The most likely target for 2021 is the $1 per XLM Coin mark. In the long term, the prospects for Lumens cryptocurrency will depend on the dynamics of the cryptocurrency market and the implementation of the system proposed by the creators of Stellar in the global financial system.
According to XLM chart, the coin has already found its bottom. In our opinion, it is unlikely that Lumens has a chance to fall even lower. Stellar is a widely known platform and a very recognizable brand. Of course, it cannot be compared to such giants as Bitcoin and Ripple, but it has a leading position in the market and is respected by the community. The platform has been certified as compliant with Sharia Law. No other coin has received such recognition in Islamic states. This may contribute to the popularity of crypto among people who practice Islam.
The platform is in demand. There are many projects based on Lumens, in particular SatoshiPay (payment widget for the Internet), Blockbook (system for creating avatars for Stellar users’ addresses), BlockEQ (decentralized exchange), WeBuy (advertising platform) and many others. On this site you can find a wider list of projects. There is a powerful team working on the project, including Jed McCaleb (former Ripple developer), David Mazier (Professor of Computer Science at Stanford University) and other equally knowledgeable people.
Popular prediction websites such as Walletinvestor make positive predictions. We are not talking about the correctness of the predictions. We are talking about the fact that they create a positive information backdrop that influences people’s opinions and their decision to buy or not buy the coin. XLM has started to attract good trading volumes again.
Advantages of Stellar cryptocurrency
According to experienced members of the cryptocurrency community, the main advantage of the digital coin Stellar can be considered the scalability and openness of its source code. A telling aspect of this cryptocurrency’s system is that it can easily handle thousands of transactions in a single second. At the same time, it takes no more than 5 seconds to confirm a transaction, which is an unattainable result for modern cryptocurrencies. Such characteristics of the coin allow it to compete on equal terms with bank remittance services.
Also, one of the most important advantages of this coin can be called the support of SCP technology, which allows participants to exchange cryptocurrencies, fiat money, as well as tokens and other assets without restrictions. Thus, we can say that this technology advantageously differs from the more common software protocol PoW.
At the same time, we should also note the support for the ability of users to use smart contracts, as well as multi-signatures. This makes it possible to significantly expand the functional component of this crypto. It is quite possible that these positive aspects of Stellar, will allow it in a short time to win a loyal user audience, appreciating the constant technical innovations that can improve the work inside the crypto network. Crypto market analysts predict the start of a sharp rise in the digital coin’s quotes in 2021. However, one should not invest thoughtlessly in this asset due to the high volatility of the cryptocurrency.
Lumens price forecast for 2021
Not all specialists undertake to forecast cryptocurrency, because this business is quite dangerous due to its instability of the financial market. The insufficient level of market capitalization and its assets should be at the top of the list.
Lumens forecast for 2021 is as follows:
- Each event is analyzed in terms of its impact on Stellar – percentage growth will depend on the strength of the market.
- After a spike, there is a stability phase, called a correction. It is not realistic to predict how many depositors will decide to fix their profits. It takes time for the achieved figures to become stable.
- Demand surges are provided by a rise or fall in interest. Stellar’s competitor is Ripple, so when making a forecast, one should take into account the position on the market of analogues and competing services, which allows for a more accurate representation.
Lumens cryptocurrency forecast for 2021 depends on the stability of the financial market. In one case or another, Stellar does not lend itself to regulation. Many countries are taking a number of measures to keep the new financial instrument out of general use.
Cryptocurrency is extremely volatile, and its area will be subject to active regulation. The main growth is the drafting of new, most profitable collaborations. As Stellar is experiencing rapid development through agreements with many of the world’s largest companies, its prospects for 2021 look optimistic. However, according to experts, a new historical maximum will be reached only in 2022.
How to make money on Lumens and where to store it – Stellar wallet
Decided to make money with the coin? You can use one of several strategies to do so:
- Long-term-investment – buy XLM at the current price with holding in the portfolio for at least 2 years.
- Short-term-speculative – buy Lumens at major support levels and sell at the moment of maximum growth.
- For maximum efficiency of this strategy it is better to use pending orders.
For fast transactions with XLM, our online Stellar wallet is perfect. If you are going to store large amounts of Lumens for a long time, we recommend using cold Stellar wallet: Ledger and Trezor.
According to analysts, the forecast of the Lumens exchange rate to the USD in 2021 is not characterized by sharp movement, the situation with the coin will be quite quiet and stable. However, according to experts, in the longer term, the cryptocurrency may reach a high level and occupy the niche of the main system of intercurrency transfers. More and more financial institutions began to pay attention to the protocol Stellar, due to which the prospects of the cryptocurrency greatly increase.