In the recent bull market, Stellar stands out as one of the best performing assets. What could cause it? Will it continue in the future? In this article, we analyse the present and look at XLM price predictions for 2021 and more distant future.
What are Stellar and Lumens (XLM)?
Stellar is a “cryptocurrency-adjacent” open-source and currency-agnostic system for money transfer. Stellar was built on the open-source code of XRP with the addition of some unique features like Stellar Consensus Protocol (a modified protocol which lets node operators pick validators they trust). The idea is to use the network for borderless payments and quick settlements between the network participants.
Stellar lumens (XLM) is a native token in the Stellar network. It was introduced to prevent spamming attacks and act as a requirement to own an address in the system. XLM imposes equal rules to all the users of the Stellar network, making it currency- and nation agnostic. Lumens are also used to pay for transaction fees and act as an intermediary for illiquid assets on the network’s DEX.
To find out more about how Stellar works and details on XLM, read our Beginner’s Guide!
Price History of Stellar lumens (XLM)
To give an educated guess for XLM price predictions, we first have to analyse the price history and outside influences.
In 2014, at the early stages, Stellar was supported by prominent investors (for example, founders of PayPal, WordPress and AngelList). At the premine, 100 billion lumens were created and started entering circulation. The entity overseeing this is Stellar Development Foundation, which was also founded in 2014.
In November ‘15, Stellar got a new codebase with a unique consensus algorithm. However, it did not influence the price that much. 2016 was the year when Stellar Development Foundation struck a deal with Deloitte and held several official airdrops.
The highest XLM price in this period was 1900 satoshis (about $0.006) on December 20, 2014.
In 2017, retail investors have started to take interest in cryptocurrencies. It culminated in a massive rally which influenced all assets. At the peak, XLM was worth $0.85, which is its current maximum. During 2018, the market was in correction and generally bearish.
Prior to 2019, there were 100 billion lumens, and there was a 1% inflation rate. However, that year Stellar Development Foundation decided to burn half of the total supply and stop issuance of new XLM. Upon the news, the price increased by 25%. In 2019, XLM was traded in a range between $0.04–0.14.
At the start of 2020, XLM was hit by the “crypto winter” hard, but it survived. In 2020, by November it has grown from $0.045 to $0.077. In November, the XLM protocol saw another upgrade. Then it shot up to $0.22, massively adding in value. 2020 saw XLM close at $0.1284.
In 2021, XLM spiked again, and the most recent local high is $0.4023. This coincided with the news that Ukrainian government chose Stellar Development Foundation to develop the national CBDC.
At the moment of writing, XLM is worth $0.2817 and ranks 11th (according to CoinMarketCap).
What influences the price?
As proven in the previous section, the news about a new partnership can increase the interest of investors. Extension of the user base and new use cases in long-term are steps towards adoption. Stellar offers a solution for financial services, for example, remittances and digital banks. The remittances market is a huge one, so tapping into it is a winning strategy.
Stellar can be used not only for monetary assets. For example, European real estate company Vonovia announced a solution for real estate rights tokenization.
As seen from the price history, upgrades can be a factor in the change of price. The November upgrade included defense from farm attacks (an attack which involves creating accounts en masse to gather XLM from service providers) and quality-of-life improvements for application developers.
Stellar is working with companies of any kind, public and private. Last year, they announced a partnership with Elliptic to improve their own platform. Elliptic is an analytic company which helps make Stellar more transparent and fraud-proof. This, in turn, will provide more value for the partners to which Stellar offers their services.
Latest Twitter posts
— Machiavelli’s Art Of Trading. (@Machiaveliian) January 16, 2021
Machiavelli’s Art of Trading on Twitter points at a sign that last time coincided with a 3,200% jump up. On a 1-week chart, the 50 and 100-day moving averages crossed, and the price is well above that point. Traders interpret it as bullish signs.
“I think that there is no question that access to financial services…access to platforms like @StellarOrg are going to be a critical part of opening up the world so that everyone can become wherever their imagination leads them” @jim_yong12 12th President of World Bank #XLM pic.twitter.com/NpY3hkjHRz
— Sam Conner (@samconnerone) January 5, 2021
Sam Conner shared a piece of interview with a former World Bank President, Jim Yong Kim. What he shared was pretty interesting: he admitted that banks these days lack understanding of the latest financial technologies. Anyway, the desire to develop is still there, and more banks are looking at the fintech industry. Stellar is one of the technologies that particularly fascinates Kim’s colleagues. A large part of its potential is to open up the banking system and make it more accessible, he says.
Stellar Lumens close to breaking out. If/when it does, my next target would be a little over $0.50 #Litecoin #cryptocurrencies #LINK #GRT #XLM #BTC #LTC #ETH #XRP #Crypto #altcoins pic.twitter.com/bhsKIJRg4M
— Northstar (@Northst18363337) January 18, 2021
Trader Northstar is known for his coverage of altcoins. In his latest XLM forecast, he expects it to break out of a short downtrend. The target (with no time frame) is $0.50, so he expects the rally to continue sooner or later.
XLM Price Predictions for 2021
FXStreet XLM Price Prediction 2021: 20% move up or down
In a price analysis, FXStreet analyst Lorenzo Stroe shows that the graph is being squeezed between the Bolinger bands. It is a technical indicator calculated with regard to price movement and volatility. This could mean a sharp move in a direction which depends on who has the initiative on the market. Correspondingly, his bullish target is $0.372 and bearish — $0.23.
Monetize XLM Price Prediction 2021: over $1
Using fundamental analysis, Monetize authors conclude that in 2021 lumens will be worth more than the current ATH, following Bitcoin. Will Stellar lumens reach $1, then? Ripple’s legal trouble can be the reason Stellar will make it to the top-5. In these conditions, XLM reaching $1 by December is not impossible.
PrimeXBT XLM Price Prediction 2021: $0.075–0.175
PrimeXBT authors apply technical analysis to large time frames of XLM. According to their Stellar price predictions, 20 cents make a neckline of a head and shoulders pattern. In 2021, they project, XLM price will be forming a right shoulder in the $0.075–0.175 range.
Stellar Price Predictions for 2022–2024
PrimeXBT XLM Price Prediction 2022–2024: $0.075–0.175
Once the head and shoulders pattern is finished, it is a signal for bullish move. In the next two to three years, XLM can rise to $1 and above. The analysts put a target at $1.022, which will certainly be reached by 2024.
Coinpedia Stellar Price Predictions 2022: $0.56–0.77
Based on experts’ opinions, Coinpedia authors speculate that in mid-2022, lumens will reach a yearly high of $0.77. The closing price of 2022 will be slightly lower, approximately $0.56.
TradingBeasts XLM Price Predictions 2023: $0.44–0.50
A bullish but moderate forecast is given by Trading Beasts website. According to their data, in January XLM will be trading at $0.44 but grow throughout the year. By December 2023, XLM will be worth $0.5057856.
XLM Price Predictions for 2025
3commas Stellar price prediction: $0.075–0.44
Another conservative prediction is provided by 3commas. They predict that even in five years, lumens will be traded in the same price range than in the previous years. The lowest price of XLM in September 2025 is estimated at $0.075 and the highest — $0.44.
DigitalCoinPrice XLM Price predictions: $0.73–0.98
The historical analysis utilized by DigitalCoinPrice website calculated that even in five years XLM will not cost over $1. The January price of lumen will be $0.73 on average. With some volatility, the price will be going up very closely to $1.
WalletInvestor XLM Price predictions: $0.315–0.469
The WalletInvestor website is known for being bearish on many assets. It is not very bullish on Stellar lumens, either, but in five years all current holders will be in black. The highest average prices for 2025 will be in January ($0.40–0.47), and for the rest of the year XLM might be traded at slightly higher than now: $0.30–0.35.
XLM Price predictions for 2030
In ten years, the cryptocurrency market will definitely be unrecognizable in comparison to today. If we assume it develops at the same pace, we can make an educated guess. Altcoin Captain considers $6 per XLM to be a fair price in 2030. Cryptocurrency Price Prediction puts their estimates for 2030 at $2.68–4.30.
XLM Price Predictions 2021–2030
Year XLM Price
ChangeHero XLM Price Predictions
The 2021 XLM price predictions have to consider the current sentiments around Stellar’s main competition, Ripple. In the worst case for the latter, XLM can climb up to top-5 and take its place. This can happen if the current rally continues, and then we might even see XLM for $1 as soon as this year.
How to buy XLM on ChangeHero?
Did you know you can get XLM in exchange for other cryptocurrencies on ChangeHero without an account? It’s done in five simple steps:
- Choose the currencies on the home page, amounts and the type of exchange. Provide your XLM wallet address and memo in the next step and check the amounts;
- Send in a single transaction the sum of cryptocurrency you will be exchanging. Fixed Rate transactions have a 15-minute limit;
- And now, relax! We are doing all the work: checking the incoming transaction and doing the exchange as soon as it arrives;
- As soon as the exchange has been processed, your XLM is on the way to your wallet. We’ll be happy to hear your feedback if you enjoyed using ChangeHero.
Our support Heroes are available 24/7 in the chat on our website or through the email: [email protected].
Stellar is off to a great start in 2021. The work done by Stellar Development Foundation promises a bright future for the crypto industry and XLM supporters in particular.