Stellar Lumens (XLM) price prediction: will the coin be the next one to rally? (2024)

There are plenty of cryptocurrencies believed to have the potential to become big, and the Stellar Lumen is definitely up there among them. However, before we delve deeper, let’s start from the beginning and first talk about what Stellar really is.

What are Stellar Lumens?

Used by the Stellar Network, the Stellar Lumen is an altcoin that trades under the symbol XLM. It became very popular a few years back, in 2017, during the ICO craze that attracted major interest in cryptocurrencies, sent the prices up, and eventually resulted in the crypto winter that lasted for more than a year.

Since its creation, the Lumen’s purpose was to be the fastest project out there and to become a go-to coin for making international transactions. With the banks being too slow for this day and age, often taking entire days to send a payment from one part of the world to another, cryptocurrencies such as Bitcoin (BTC), which can do it in 10 minutes, became a preferred option.

Now, Stellar wants to be to Bitcoin what Bitcoin is to traditional banks; to achieve that, it has developed a system that allows it to process payments almost instantly. As such, it has a similar purpose to Ripple’s XRP; indeed, the two have been competitors for years. But, where Ripple decided to offer its services to the banking sector, Stellar opted to target the people themselves, with no intermediaries.

XLM used to be one of the top-ranking cryptocurrencies, often sitting at the seventh or eighth spot on the list of largest coins by market cap. However, by the time of writing, March 24, 2021, Stellar Lumen has dropped out from the top 10 list, occupying the 14th place. This is not due to the fact that people are losing interest in it; it simply comes as a result of greater interest in some other projects which have attracted a lot of attention recently, like Uniswap (UNI), Polkadot (DOT) and Cardano (ADA).

That said, it is also worth noting that Lumen did not exactly perform that admirably over the past few years, either. However, this started to change this year as the coin’s performance did not only start to improve, but it also came a decent way up to its old all-time high of $0.94, thus giving investors hope that XLM could once again be one of the more competitive digital currencies.

Latest XLM news: what has been driving the price so far in 2021?

Earlier this year, on January 29, the Stellar Development Foundation (SDF) published its 2021 roadmap, with three strategic pillars holding the project to pretty much the same course. These are: supporting the robustness and usability of the project; helping it to be a trustworthy blockchain; and fostering and developing sustainable use cases.

However, each of the three pillars consists of specific and unique aims that all work together towards the same end result, allowing Stellar to grow significantly in 2021.

The project is particularly focusing on transparency, with the publishing of the roadmap further confirming that. Furthermore, it will give the project’s community some hints regarding what the project is aiming for, and allow people to confirm that it has truly made progress.

The price of the project’s native coin started to increase immediately after this announcement, sending XLM to a three-year high in only two weeks.

Other than that, Stellar also recently announced that its anticipated integration with USD Coin (USDC) was live, and that its blockchain now allows users to send USDC tokens.

Lastly, on March 2, the project finally released Horizon 2.0.

XLM price analysis: slow but steady on its way to the top

As mentioned, the XLM price surged in the response to the project’s latest roadmap, as well as the announcement of the USDC launch on its network. However, the coin began its slow yet steady hike even before that, right at the start of the year.

On January 3, XLM started seeing a significant price movement, going from $0.0125 to $0.3560 in only four days. The coin corrected slightly to an average price of $0.3; after that, it traded sideways with small fluctuations until late January, when it entered another uptrend. The steady growth turned into a sharp surge around February 10, likely caused by Bitcoin and Ethereum’s major price increase.

Fortunately, XLM was able to join the rally, by skyrocketing to $0.57 by February 13. After the hype passed, the price dropped down to a support level at $0.5, which was then followed by another drop to an average price of $0.4 around February 22. Since then, the coin has been mostly stable, occasionally going slightly up and then correcting back to $0.4.

Stellar Lumens (XLM) price prediction: should you buy, sell, or hodl?

According to CoinSwitch, there has been a lot of positive sentiment regarding the efficiency of Stellar’s blockchain payment network, arriving from XRP after Ripple was sued by the SEC for selling an unregistered security. This may also be one of the main reasons why the coin’s price surged in early 2021.

As for the future, CoinSwitch believes that Stellar can go further up in 2021, eventually reaching $0.77 this year. More importantly, its long-term XLM price prediction says that the coin could hit $5 by 2025. While this might seem very optimistic, if Stellar is the one to skyrocket next this should be perfectly within the range of possibility.

Next, there is a Stellar Lumens forecast by Wallet Investor, which has a somewhat less bullish forecast than CoinSwitch, but still positive. In its 2021 prognosis, the online forecasting service estimates the XLM price to average $0.578 at the end of the year.

As for the long-term Stellar Lumens price prediction, Wallet Investor sees XLM trading at an average of $0.763 in December 2022; $0.934 in December 2023; and $1.132 in December 2024. In five years, by March 2026, the coin is expected to reach $1.327. While this may not seem an extreme growth over such a long period of time, it would still be welcomed with open arms if the coin ends up crossing the $1 mark.

The last XLM forecast comes from Digital Coin Price, whose prediction looks similar to that of Wallet Investor, which claims that Stellar will go beyond $1 (although it predicts it to happen slightly sooner – not in five years but in four – around February 2025). According to the outlook, XLM will reach $0.72 in 2022; $0.86 in 2023; $0.99 in 2024; and $1.24 in 2025. The coin is expected to trade at $1.80 in 2028.

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