Among thousands of cryptocurrencies that exist today, it is very difficult to find one that will eventually make a profit. Add to that the volatility of the crypto market, and the chances of loss increase significantly.
Deciding which currency to buy at a given moment is very important to the investor. This is the reason why so many people look for price forecasts. Although no one can predict price changes with 100% certainty, forecasting often helps to identify potential suitable coins for investment.
Among the many tokens investors are investing in is Stellar, but before we dive into predicting prices, We need to take a brief look at the platform and the token.
What is Stellar?
Stellar Lumens Price History.
What are the key factors that can affect the price of a Stellar coin?
Stellar (XLM) price forecast for 2021, 2022, 2023, 2025 and 2030
What is Stellar?
At its core, Stellar is another decentralized payment system, like many other currently available blockchain platforms. The platform was launched in 2014, and since then the developers have been working hard to solve most of the problems that plague the traditional financial system.
The distributed accounting system works by harnessing the power of servers configured in a decentralized way, with data updated every few seconds. One of the main features that sets this platform apart from most others is the way the consensus works.
Unlike the majority of other blockchains, where a transaction is approved by the entire network, Stellar takes a different approach. The FBA (Federated Byzantine Agreement) algorithm is used by each node to “select” a few other nodes that it deems trustworthy. As a result, transactions are much faster, and Stellar can handle up to 1,000 transactions per second.
Price History of Stellar Coins
XLM, the Stellar token, has experienced a strange path since it hit the market, I dare say unique. It has not followed market trends as obediently as other altcoins.
For the first few years of its existence, the price of XLM was quite low. One reason was that it was in the early days of crypto, and another was that the platform was not used in the real world. From 2014 until mid-2017, Stellar’s price was only a fraction of a cent. Then, around June 2017, the price almost reached $0.05 and then dropped to just over $0.01.
By the end of 2017, Stellar had already announced that it would partner with IBM, which dramatically raised the price to nearly $1. The price went down, reaching a low of $0.2 by the end of March 2018. After that, the lumen price rose sharply to $0.43 a month later.
From that point, the price gradually begins to fall, reaching a low of just over $0.03 in March 2020. After that, a gradual increase begins to appear on the chart, which crosses the $0.1 mark only to fall to about $0.07 in October 2020.
From that point on, the price began to rise, reaching a high of more than $0.7 in May 2021. This was followed by a drop, which, however, hit not only Stellar, but also most of the crypto market during the last 2 months. At the moment (July 16, 2021) the price of XLM is just over $0.23.
One of the most important problems investors face is how the price of cryptocurrency can change and what changes it. In general, several factors can dramatically affect prices.
Price increases are often seen on platforms that partner with popular companies, and marketing alone is enough to raise the price. For example, look at the price Stellar had before and after the announcement of the partnership with IBM. While there aren’t many rumors of a potential partnership with Stellar, a big partnership can easily drive up the price.
Overall popularity and trading volume can also affect the price. Look at it this way: every time some famous person mentions a cryptocurrency, the price goes up. Of course, these trends don’t last too long, but you can make a decent profit if you keep a close eye on these things. The same thing happens the other way around. If an opinion leader talks about a particular cryptocurrency as something negative, the price goes down as most people panic and start selling.
Cryptocurrency regulation has been causing quite a stir in the market for some time. While many believe that regulated cryptocurrency deviates from the original idea of complete anonymity, others argue that with increasing government pressure, this is the only way to avoid prohibition. Either way, the mention of crypto-regulation could cause the price to rise or fall, depending on the nature of regulations. For example, if a large country such as China decides to ban cryptocurrencies in its territory, their prices will go down because fewer people will use them. On the other hand, the more states recognize cryptocurrencies as legal tender, the more likely their value will rise.
Basically, it all comes down to supply and demand. The more widely used and traded a coin is, the higher the price can go.
So, what the future holds for Stellar (XLM) and will this coin increase its value in the next few years? I think it will, and I will tell you about the price changes in the next few years.
Predicting the Stellar price is a bit problematic, mainly because it does not follow most trends. However, if we look at past prices, we see a certain pattern.
At the moment, the Stellar price is declining after the market crash we saw about a month ago. However, I believe the market has more or less stabilized already, and it is only a matter of time before the lumen price starts to rise. My guess is that Stellar (XLM) should meet the end of 2021 with a price around $0.5.
Based on my analysis, the price of Stellar should increase by about $0.2-0.3 per year, which means that by the end of 2022, XLM will be worth about $0.7-0.8. Following this trend, Stellar will finally break the $1 mark in 2023 or 2024. This leads me to believe that by the end of 2025, we should expect a price around $1.3-1.4.
Given the difficulty of predicting value, especially on coins like Stellar, price increases over the next few years are not so bad.
As I mentioned in the previous section, many things can affect prices one way or another, which means that XLM may not reach $1.3 by the end of 2025, or it may go even further. Unfortunately, there is no certainty in this industry.
When you look at how cryptocurrency prices have moved over the past few years, you’ll understand why no one can be sure how a coin will change its value.
Looking at Stellar, it is even more complicated as people will not base their predictions on past trends of other cryptocurrencies. Regardless, I believe that Stellar will start an upward trend in the next 5 years, making it a decent investment with good profit potential.