Stellar lumens (XLM) price: opinion, evolution and prediction
Cryptocurrencies are planning to give the traditional banking system a hard time. For many people, it is more beneficial to use cryptocurrency to conduct a financial transaction than to go through a traditional institution like the bank. The crypto allow faster transactions. However, the execution time of a transaction and the use cases depend from one blockchain to another. Today we present to you Stellar Lumens, a cryptocurrency whose main objective is to facilitate fast transactions at a lower cost. Subsequently we will see the evolution of the price of Stellar lumens, short and long term forecasts, its operation and our opinion on the project.
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How to get Stellar?
To take advantage of the Stellar Lumens (XLM) price, you have to buy some. Lucky for you, the days of suffering before buying cryptocurrency are over. The rise of digital currencies is one of the elements that have prompted many entrepreneurs to create exchange platforms. It has therefore become easier to take action. The purchase of cryptocurrencies is more and more accessible to everyone. Currently, Stellar Lumens (XLM) is listed on a range of crypto exchange platforms. Even more traditional online brokers like eToro or Libertex have followed suit by integrating several cryptocurrencies into their platforms. Making it easier to trade between cryptos and currencies attracts new customers to them. A broker is not the only way to get a cryptocurrency, there are others that we will talk about below.
Obtain Stellar via eToro
Created in 2007, the eToro exchange extended, a few years later, its services to any user wishing to be exposed to the variation in the price of Stellar lumens and other popular cryptocurrencies. To purchase XLM on eToro, all you have to do is create a user account on the platform, make a money deposit (fiat currency) and use it to buy XLM tokens. For the purchase of cryptocurrencies, the minimum to be exchanged is 25 dollars.
The advantage of taking advantage of the Stellar Lumens (XLM) price via the eToro broker is the ergonomics of the platform and its adaptation to the needs of beginners. An eToro user has the ability to automatically copy the positions of experienced traders. He can also have access to tools such as leverage and more, it is possible to gain exposure to the course of several assets like currencies (forex), ETFs, stocks, etc.
Undermine the Stellar lumens
Mining is an activity that consists of allocating computer resources to validate transactions and secure a blockchain network using proof of work (Proof of Work). Mining participants in return earn a reward in new, freshly created tokens. The reward for mining can be a lot of money, but it differs for different cryptocurrencies. Mining does not exist for cryptocurrencies that use proof of work. The Stellar Lumens is one of them. The validators of the XLM network, on the other hand, make money by obtaining fees on transactions and by an inflation of 1% of stellar tokens. Only nodes that have obtained more than 0.05% of votes (from users) enjoy this advantage. An XLM coin gives each user the right to cast 30 votes.
In addition, there is a solution, albeit unpopular, for obtaining XLMs by mining. It consists of mining bitcoin (BTC) or ethereum (ETH) and exchanging them (via a crypto-exchange) for Stellar Lumens tokens.
Faucet Stellar lumens
A Stellar Lumens faucet is a site or application that offers (for free or in return for a given task) XLM tokens. These applications usually offer between 1 and 5 XLMs. But beware, one of the harmful elements with the sites which present themselves as faucets is nothing that they are real. Moreover, the objective of some of these sites is sometimes to collect personal data and then use it in less laudable activities such as spam or the promotion of crypto scams. Also, don't panic if you are stubborn in getting free coins, a well-reputable platform like Coinbase distributes XLM tokens to users as long as you watch a free course available on their site. However, to be eligible, you must first create an account and pass the identity verification procedure. It is also possible to let your XLMs (20 minimum) sleep on several exchange platforms in order to obtain up to 50 dollars in XLM each end of the year.
Stellar price history
The variation in the price of Stellar Lumens does not only depend on the investors and traders who buy and sell it daily on the stock market. It depends on several elements, including the adoption of its payment protocol by financial institutions. Indeed, even if the price of Stellar Lumens is fixed by supply and demand, its fundamental value is linked to the mission of the project. In addition, the cryptocurrency market being still too young, their prices often react to sometimes exogenous elements. For example, a fall in the price of bitcoin may influence that of the Stellar Lumens or even lead the entire market into a downtrend. To understand the mechanics behind the variations in the prices of cryptocurrencies, we offer you a zoom on the history of the price of the Stellar since its creation.
Stellar price in euro in 2014
Stellar went public in 2014. The price of the Stellar Lumens had weathered the storm as bitcoin (the main cryptocurrency) went through a difficult period following the hack of the Mt.Gox platform. XLM had not been affected at all. After entering a crypto exchange, its price was around 0.0019 euros. It then made a bullish rally to reach a high of 0.0050 euros (EUR) before dropping down to 0.004534 euros (EUR), the price of its annual close with a daily volume of over 34 thousand euros.
Stellar lumens (XLM) price in 2015
2015 was an important year for the project, the year in which its roadmap was unveiled to the general public. It was also the same year that the Stellar became an autonomous cryptocurrency by completely breaking away from Ripple's network. Unlike the project as a whole, the price of the Stellar Lumens was not at the top. After reaching a maximum of 0.0045 euros, its price recorded an annual close of 0.0016 a drop of more than 50% with a daily volume of more than 24 thousand euros
Stellar lumens (XLM) price in 2016
The beginning of 2016 was characterised by a strong instability of the price of Stellar Lumens (XLM ). Throughout the year, the supply of coins in circulation continued to increase in the market. This created high price volatility. In addition, despite strong fluctuations, the annual close was 0.0023 euros (EUR) with a trading volume on the stock exchange around 41.231 euros over 24 hours.
Stellar lumens (XLM) price in 2017
2017 is a post instability period for the price of Stellar lumens, but above all a crazy year for the crypto market in general. At the time, everything that was crypto tended to explode and the price of Stellar (XLM) had taken advantage of it. The project was put in the spotlight by announcing, in October 2017, a partnership with IBM. The price of the Stellar Lumens had reacted very quickly. The bullish rally had dragged it down to 0.30 euros per coin. It is at the same price that the XLM closed the year with an exchange volume exceeding 150 million euros per day.
Stellar lumens (XLM) price in 2018
In 2018 the upward trend continued for the price of the Stellar. On January 3rd, it had reached a maximum price of 0.7431 euros with a daily trading volume of more than one million dollars. The price then fell sharply to 0.0098 euros, its annual closing with a daily volume of more than 88 million euros.
Stellar lumens (XLM) price in 2019
In 2019, XLM airdrops have multiplied on the exchange platforms. To participate, all you had to do was register on Coinbase or Blockchain dot com. Each user received between 25 and 50 US dollars in XLM for free. This phenomenon had inflated the supply of Stellar Lumens on the market. A fall in the price followed, resulting in an annual closing of 0.04 euros with a daily volume of more than 140 million euros.
Stellar lumens (XLM) price in 2020
The crypto market tested positive for covid 19 at the start of the pandemic, but the crypto immune response to this infection was impressive. Indeed, the financial markets had collapsed to incredible levels. Cryptos had also suffered the impact. Luckily, the post-covid period was very positive for the crypto market. Bitcoin even exceeded its all-time high The price of Stellar lumens had for its part regained its health. It closed the year at a price of 0.10 euros with more than 393 million euros in volume over 24 hours.
Stellar lumens (XLM) price in 2021
The uptrend continued this year. The price of Stellar Lumens reached the price of 0.60 euros on May 11 with a daily volume of more than 3.7 billion dollars before falling in July to the level of 0.17 euros.
Stellar lumens price and value prediction
The price of the stellar Lumens is defined by the law of supply and demand. Its price is set by the market. However, as with any asset on the stock market, the price of XLM can be influenced by several exogenous factors. This could be news of a partnership for the project, regulatory uncertainty, soaring bitcoin prices, etc. What predictions for the price of XLM in the long and short term? Opinions differ but one thing remains obvious: while many analysts believe that cryptocurrencies are still young assets and with a lot of potential, others believe that they do not have a clear future, especially following the regulations. What about Stellar lumens? What will his course be worth in a few weeks? In a few years? It's time to share some predictions and our review on XLM with you.
Short-term Stellar lumens price prediction
Short-term forecasting of the Stellar price is not easy. The crypto market is constantly evolving, it never stops like the traditional stock exchange. So every minute counts. Although a trader can make use of advanced technical analysis tools, a negative scoop can cause the price of stellar lumens to crash in a flash. Without taking into account the probable effects of surprise, after analysing the price of the XLM, we believe that the token has everything to distribute upwards and break its all-time high of 0.74 euros. Indeed, it is one of the few cryptos not to have exceeded its ATH (All time High) of 2017 during the euphoria of 2021. A decline is not to be ruled out either. Until bitcoin breaks its ATH of $64,000, there will be less conviction about this second phase of the bull-run.
Long-term Stellar lumens price prediction
The history of the price of Stellar lumens makes it possible to determine its probable direction in the years to come. Some analysts even go so far as to project an XLM price of up to 10 euros while others, more skeptical, see the supply of XLM (50 billion tokens) as an obstacle to the explosion of its price. The supply seems much higher than the real market demand.
You will understand, even with an experienced level of trading, a user remains unable to accurately predict the future price of a cryptocurrency. As for us, our forecast is simple. We believe that as long as there is a growing interest in cryptocurrencies, in particular thanks to the arrival of institutions in the crypto market, we can hope that the price of Stellar lumens will be positively impacted. However, the developers of the project have their work cut out for them. The Stellar lumens will only survive if it can play its role and capture demand in the market. Besides on this subject, let's see together the added value that the Stellar lumens aims to bring to the crypto market.
Definition: what is “Stellar” crypto?
Stellar is a payment protocol that aims to significantly reduce the fees and time required for cross-border transfers thanks to its cryptocurrency, the Stellar lumens or XLM. Indeed, Stellar is the decentralised network on which the XLMs are based.
At the beginning, Stellar and Ripple used the same protocol before a fork intervened in 2014 to separate the two projects. A consensus specific to the Stellar was then created. Aside from the two protocols, Stellar and Ripple share (almost) the same characteristics. However, the clientele targeted by the two projects is different. While the Ripple protocol is aimed at banking institutions, while Stellar's priority is to establish itself in developing markets in order to facilitate the interoperability of mobile money transactions, for example.
Stellar was founded by Jed McCalled, a co-founder of Ripple, in 2014. 100 billion tokens were issued at the launch of the Stellar blockchain, a product of a hard fork of the Ripple Labs protocol.
Stellar's initial goal was to foster financial inclusion by enabling anyone with a smartPhone to access banking services. Shortly after, Stellar went beyond this mission by offering financial companies to interconnect through its blockchain to serve as a bridge between fiat currencies and cryptocurrencies.
In 2019, the Stellar Development Foundation announced the destruction of half of Stellar issued. The supply has therefore increased from 100 to 50 billion tokens, of which 23.51 are already in circulation on the market (at the time of this writing). The team behind Stellar controls nearly 27 billion XLM of which 1/3 is reserved for investments in other blockchain companies and a part is for marketing.
What is it for?
Stellar is an open source network whose goal is to transfer and store money. Through a decentralised exchange integrated into its network, Stellar hopes to play an important role in financial inclusion. It intends to make it possible to trade a wide range of assets as well as to send any currency anywhere in the world in a short period of time. XLM allows users to pay network transaction fees while facilitating conversion between different currencies.
In short, Stellar wants to offer instant and cheap payment to everyone. The project also aims, as we mentioned above, to bring financial inclusion (thanks to a simple smartphone) to the populations who need it. In practice, if a user wants to send for example $ 500 and without having access to a bank account, he can convert the funds to XLM and send them to the recipient who then exchanges them for his local currency.
Stellar blockchain: how does it work?
The stellar works with its own consensus mechanism called the Stellar Consensus Protocol (SCP). The latter has properties that make the network flexible and capable of processing transactions at high speed. Indeed, 3 to 5 seconds are enough to validate a block of XLM transactions, a speed much higher than that of the Bitcoin blockchain. The latter takes ten minutes to validate a block. The Stellar protocol gives the possibility to every owner of XLM parts to become a node. A node participates indirectly or directly in the decisions of the network. Here is how it goes:
Nodes choose a group of nodes that they trust,
The chosen nodes come together to form different groups that check the validity of a transaction;
As soon as a consensus is found in a group, the latter communicates its decision to the entire network;
The rest of the nodes give their approval. The transactions are then entered into the Stellar blockchain. The nodes that update the blockchain then form a mini-network called “quorum slices”. It is made up of members of the network who agree on the validity of the relayed transactions. This mechanism makes it possible to quickly reach an agreement on valid transactions without sacrificing fluidity across the network.
Even though anyone can join the Stellar network, note that the cost of maintaining a node is around $40 per month.
Wallet + Stellar: how to go about it?
After purchasing XLM coins on a fiat currency exchange platform (euro, dollar, etc.) it is advisable to save them in a private wallet. This helps to keep his tokens safe from hackers.
Stellar has taken precautions with LOBSTR, which is its native Wallet, where you can purchase XLMs directly over the network. LOBSTR also allows you to make a secure backup of private keys. However, this is not the only wallet that supports Stellar lumens. The choice of a wallet depends on the user's needs.
If the goal is only to take advantage of the variation in the price of Stellar lumens by trading, it is best to buy it on an exchange like eToro. Such a platform offers much better backups with well-guaranteed security thanks to the CFDs guaranteed by the platform. But be careful, in this case it is the broker who manages your tokens.
If you rather want to buy XLM tokens in order to be exposed to its price over the very long term, then you need to get a hardware wallet. It is a physical device and not connected 24 hours a day to the internet. It offers the highest level of security in terms of safeguarding cryptocurrencies. The most used are Ledger, Trezor, Cool wallet, etc.
For an average user, without large amounts involved, it makes sense to use a free wallet, available for download on PC and mobile. ex: Atomic wallet, dot com blockchain, Exodus, etc.
NB: each time you configure a wallet, you must make sure to write down your private keys (on a piece of paper for example) and keep them safely away from the internet. The loss of private keys is equivalent to the total loss of your cryptos.
Advice: should you invest in Stellar?
Before investing in Stellar Lumens or any other currency for the long term, it is essential to know the fundamentals. For short-term traders, technical analysis is important in determining the right time to invest in a cryptocurrency. In both cases, the expected gains after exposure to Stellar lumens are proportional to the risks involved.
It is unusual for a crypto project to partner with tech companies. Still, Stellar is getting there. In particular, he works in collaboration with IBM to improve bank liquidity problems and facilitate international payments by reducing the waiting period which sometimes takes days.
Note also that the fact for bitcoin and ethereum to see transaction fees explode is an advantage for XLM. In fact, the fee on the Stellar network is 0.00001 XML, the equivalent of pennies. This leaves a field of development free for the project, if it continues to stand out from the competition, the price of Stellar lumens (XLM ) could benefit. It is therefore an investment opportunity in a more scalable blockchain.
Most of the time, altcoins (other cryptocurrencies besides bitcoin) claim to be decentralised, but not so. This is also the case for Stellar which presents some negative points on the subject. Indeed, Stellar is, in reality, an overly centralised project, both in the configuration of its consensus mechanism between the nodes and in the distribution of XLM tokens. The project management team controls more than half of it. It is possible to attack the entire network by knocking out the three main nodes belonging to Stellar Foundation Development, which would be catastrophic for the price of Stellar lumens (XLM) and a fiasco for any investor. Market volatility is an additional risk, especially for traders.
In anticipation of such eventualities, every user of the Stellar Network should play it safe. As we often say, it's safe not to put your eggs in one basket.
Seven years have passed since the invention of the Stellar in 2014 until the time of this writing. The Stellar network is gradually realising its goal of making transactions faster and interconnecting financial institutions with its technology. Its different qualities (lower costs, speed) give confidence to investors and traders who are interested in the XLM token. The project does not stop proving itself as a good number of cryptocurrencies suffer from lack of liquidity and eventually disappear. While caution should be taken when exposing yourself during Stellar Lumens (XLM), we believe the project has a bright future ahead of it.