Stellar (XLM) Price Prediction 2021-2025 - Should You Buy It Now?
Well over a decade since the launch of the first and most popular cryptocurrency, Bitcoin, the crypto market is steadily seeing an increase in usage and popularity. As a result, many cryptos have appeared on the market, offering a chance for investors to make a profit.
Several years after the launch of Bitcoin, many crypto exchanges were created, offering a way for people to easily purchase cryptocurrencies, thus offering a way to invest today and make a profit tomorrow.
With several thousand cryptocurrencies currently in circulation, investors are often struggling to find the right one that will result in profit. Add the crypto market volatility into the mix, and the chances of loss are significantly increased.
The decision about which crypto to invest in is essential. That’s the reason why many people are looking for price predictions. Even though no one can predict a price movement with 100% certainty, it’s a good way to identify potential suitable investments.
Among the many tokens that investors are looking into is Stellar, but before I dive into the price prediction, here’s a quick overview of the platform and the token.
- What Is Stellar?
- Stellar Coin Price History
- What Key Factors Can Influence the Stellar Coin Price?
- Stellar Coin Price Prediction For 2021, 2022, 2023, 2025, and 2030
What is Stellar?
At its core, Stellar is another decentralized payment system like many of the other blockchain platforms currently available. The platform was launched in 2014, and since then, the developers have been working hard on tackling most of the problems that plague the traditional financial system.
The distributed ledger system works by utilizing the power of servers set up in a decentralized manner, with data that gets updated every few seconds. One of the main features that make this platform stand out from most others is the way the consensus works.
Unlike most similar blockchains where a transaction gets approved by the entire network, Stellar takes a different approach. The FBA algorithm (Federated Byzantine Agreement) is used by each node to “choose” several other nodes that it deems trustworthy. As a result, the transactions are much faster, and Stellar can process up to 1000 transactions per second.
Stellar Coin Price History
Stellar native token XLM has had a strange ride since it came to the market, I may dare to say unique. It didn’t follow the market trends as closely as other altcoins I’ve talked about in the past.
For the first several years of its existence, XLM price was fairly low. One of the reasons was that it was in the earlier days of crypto, and the second one is that the platform had no real-world usage. From 2014 up until mid-2017, Stellar’s price was only a fraction of a cent. Then, around June 2017, the price almost reached $0.05, followed by a drop to a little over $0.01.
By the end of 2017, Stellar already announced that it would partner up with IBM, which skyrocketed the price to almost $1. The price went on a dive and reached a low of $0.2 by the end of March 2018. After that, the Stellar price had a spike up to $0.43 a month later.
From that point on, the price gradually starts to drop, reaching a low price of a little over $0.03 in March 2020. After that, a gradual increase starts to appear on the graph, passing $0.1 only to drop to around $0.07 in October 2020.
The price starts to increase from that point on, reaching a 2021 high of over $0.7 in May. That was followed by a drop, like most of the crypto market in the past 2 months. At the moment (June 22, 2021), XLM’s price is a little over $0.22.
What Key Factors Can Influence the Stellar Coin Price?
One of the most significant issues that investors face is how a crypto price can change and what changes it. In general, several factors can move the prices drastically.
A price increase is often seen with platforms that partner up with popular companies, and the marketing alone is enough to shoot the price up. For example, look at the price that Stellar had before announcing the partnership with IBM and after it. While there aren’t too many rumors about potential partnerships with Stellar, a big one can drive the price up with ease.
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 hold for too long, but you can make a decent profit if you are following these things closely. The same goes the other way around. If someone talks about a specific cryptocurrency as something negative, then the price drops, as most people panic and start to sell.
Crypto regulations are causing quite a stir in the market for a while now. While many believe that regulated crypto strays away from the original idea, others think that it’s the only way for them to get adopted. Either way, mentioning crypto regulation can drive the price up or down, depending on its actions. For example, if a larger country like China decides to ban cryptocurrencies, the price would decrease, as fewer people would trade them. On the other hand, if they accept crypto as a payment service, then the price will go up.
Essentially everything boils down to supply and demand. The more crypto is used and traded, the higher the price can go.
Stellar Coin Price Prediction For 2021, 2022, 2023, 2025, 2030
So, what does the future hold for Stellar, and will it increase its value in the following several years? I think that it will, and I will break down the price changes in the next several years.
Predicting Stellar’s price is a bit problematic, mainly because it doesn’t follow most trends. However, if we look at the past prices, we can see a slight trend.
At the moment, the price of Stellar is in decline following the market crash we saw about a month ago. However, I believe that the crash is more or less stabilized, and it’s only a matter of time when the Stellar price will start to increase. The end of 2021 should greet Stellar with a price of around $0.5.
Based on my analysis, the price of Stellar should increase by about $0.2 to $0.3 each year, meaning that by the end of 2022, XLM will be worth around $0.7-0.8. Following this trend, Stellar will finally pass the $1 mark in 2023 or 2024. That leads me to believe that by the end of 2025, we should be looking at a price of around $1.3-1.4.
Keeping in mind the difficulty of price predictions, especially on coins like Stellar, the increase in price for the next several years is not too bad.
As I mentioned in the previous section, many things can swing the prices one way or another, meaning that XLM may not reach $1.3 by the end of 2025, or it may go even more. Unfortunately, there isn’t any certainty in this industry.
When you look at how crypto prices were moving in the past several years, you will understand why no one can be certain of how a coin will change its value.
Looking at Stellar, things are even more complicated, as people won’t base their prediction on the past trends of other cryptocurrencies. Regardless of that, I believe that Stellar will start an upward trend in the next 5 years, making it a decent investment with good profit potential.
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