Stellar Lumens (XLM) Price Prediction: Will XLM Go Up?

Stellar Lumens (XLM) price prediction: XLM price has stabilised, in line with other cryptos, after plummeting during the negative sentiment shift following the crash of the Terra LUNA in May.

The XLM/USD price has attempted to break out several times since the beginning of the year, as its development team works on the project’s adoption and interoperability. But the token was not spared from the rapid, unexpected collapse of the Terra LUNA and UST stablecoins, which reverberated throughout the cryptocurrency space and led analysts to revise their Stellar Lumens price predictions.

What is a realistic target price for XLM after the recent drop? In this article, we review the latest XLM coin news and price predictions to help you set expectations, should you choose to add the token to your portfolio.

The price of the Stellar cryptocurrency token (XLM) has stabilised, in line with other cryptocurrencies, after plunging in May amid negative sentiment shift following the collapse of the Terra stablecoin.

The XLM/USD price has attempted to break out several times since the start of the year as its development team works on the project’s adoption and interoperability. But the token was not immune to the rapid, unexpected collapse of the UST and LUNA coins, which reverberated throughout the crypto space and caused analysts to revise their XLM coin price predictions.

What is a realistic target price for XLM after the recent drop? In this article, we review the latest XLM coin news and price predictions to help you set expectations, should you choose to add the token to your portfolio.

 

Stellar realizes cost-effective international trading

Launched in July 2014, the Stellar cryptocurrency aims to narrow the gap between cryptocurrencies and traditional finance. The blockchain enables fiat currencies and other assets to run in parallel with each other and cryptocurrencies, making it easier to transfer fiat currency into crypto.

According to the network’s website:

“Stellar is an open-source network for currencies and payments. Stellar makes it possible to create, send and trade digital representations of all forms of money – dollars, pesos, Bitcoin, pretty much anything. It’s designed so all the world’s financial systems can work together on a single network.”

Stellar was established as a hard fork, or split, from the Ripple blockchain (XRP) and hence was based on the Ripple Labs protocol. However, some of the code was rewritten.

The Lumen, or XLM coin, is the network’s native token. Users must hold a minimum balance of one Lumen and pay a minimum transaction fee of 0.00001 XLM. According to the Stellar website: “These are small enough to keep Stellar widely accessible, but big enough to discourage large-scale bad behaviour.”

Low transaction fees aim to allow users to transfer money quickly without incurring extra processing costs.

Stellar’s intro to the platform offers the following example of its utility:

“For example, here’s what you can do with Stellar. You can create a digital representation of a US dollar – on Stellar you’d call this a “dollar token”—and you can tell the world that whenever someone deposits a traditional dollar with you, you’ll issue them one of your new tokens. When someone brings that “dollar token” back to you, you promise to redeem it in turn for one of the regular dollars in that deposit account.

“Essentially, you set up a 1:1 relationship between your digital token and a traditional dollar. Every one of your tokens out in the world is backed by an equivalent deposit. So while people hold the tokens, they can treat them just like traditional money, because they know that they’re exchangeable for traditional money in the end.”

 

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Latest news and developments of Stellar Lumens

The Stellar Development Foundation (SDF) has partnered with some of the biggest companies in finance and tech, including Deloitte, IBM and Stripe, as well as a dozen financial institutions and payment processors in Asia and Europe. Financial institutions around the world can settle payments and issue assets on the decentralised and scalable network.

In early 2022, the SDF published its strategic roadmap for the year based on three building blocks:

• Increase scalability and network innovation
• Activate more network participation
• Demand and promote inclusion

In March, the SDF announced Project Jump Cannon, a research and development venture to introduce native smart contracts for the Stellar blockchain.

This was prompted by the introduction of automated market maker (AMM) functionality for the Stellar protocol last year, inspired by other liquidity pool contracts in decentralised finance (DeFi).

According to the announcement: “What SDF realised during the AMM rollout is that it’s not sustainable to continue to limit key network innovation to protocol-level changes.”

SDF also launched the Starbridge project in March to create bridges between Stellar and other blockchains and enable interoperability.

“If Stellar is to create more equitable access to financial infrastructure, it also needs a way to interoperate with the growing space of DeFi, which now includes other blockchain networks like Ethereum,” the project said.

SDF also announced the first cohort of its four Matching Fund investments totalling $1.5m, and the distribution of $92.5m in overall Enterprise Fund investments since its launch.

On 7 April, the company said that the Canadian crypto trading platform Newton – which has a user base of nearly 450,000 – would add support for the deposit and withdrawal of the USDC stablecoin on the Stellar network.

On 8 June, Stellar’s public network validators voted to upgrade the network to Protocol 19. According to an announcement on Stellar’s developers blog:

 “Protocol 19 introduces new transaction preconditions and a new type of signer, technical changes that make it easier to build payment channels, bridges to other blockchains, and key recovery solutions on Stellar.”

The protocol implemented two Core Advancement Proposals (CAPs). According to a post on the Stellar blog on 6 May, the first will introduce “a new suite of transaction preconditions, which are optional requirements you can add to control transaction validity”, such as “transactions that are only valid in a specific time-based window”.

The second CAP “adds a new signer type that allows multiple parties to build a set of transactions for signing that guarantee if one transaction is signed, authorised and submitted, information is revealed that allows all other transactions in the set to be authorised as well.”

 

Stellar Lumens (XLM) price prediction: technical analysis

The XLM price chart shows that the coin started this year at $0.2674, having retreated from $0.7965 during the May 2021 cryptocurrency rally and failed to rebound to that level during the September and November 2021 rallies. XLM’s all-time high was reached during the January 2018 crypto rally, when it hit $0.9381.

XLM’s value initially rose to $0.2956 on 3 January 2022, but fell back to $0.1734 three weeks later. The price rose to $0.2562 on 8 February, and then dropped to $0.163 on 24 February as investors sold off financial assets as Russia invaded Ukraine.

The coin once again rose to $0.2409 at the end of March, but faced yet another sell-off – this time in an extended decline that took the price down to $0.1067 on 12 May 2022, when the Terra coins crashed.

The price has since stabilised around the $0.12 level.

Technical analysis from CoinCodex showed that short-term sentiment on the XLM coin was decidedly bearish. The coin was trading below its five- and 10-day moving averages, signifying a downtrend.

 

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Stellar Lumens (XLM) Price Prediction: Will XLM go up?

With its roadmap focused on blockchain interoperability – a popular theme in the crypto markets right now – what is the future of the XLM price? What do forecasters see in their short-term and long-term XLM price predictions?

Algorithm-based forecaster WalletInvestor’s XLM forecast estimated that the coin could rise up to $0.178 by the end of 2022 and $0.21 by the end of 2023. The coin could trade at around $0.325 by the end of 2025 and could reach $0.352 five years later, according to the platform.

The Stellar Lumens crypto price prediction from  DigitalCoinPrice forecasted that the price could average $0.17 in 2022 and stabilise at an average price of $0.17 in 2023 and 2024, based on historical data. Its Stellar Lumens price prediction for 2025 saw the token averaging $0.21 throughout the year, while its XLM future price forecast for 2030 saw it hitting an average of $0.51.

PricePrediction.net’s XLM crypto price prediction estimated that the coin could average $0.16 in 2022 and $0.24 in 2023. But its XLM prediction was far more bullish for the longer term, with its artificial intelligence-assisted technical analysis indicating that the price could jump from $0.50 in 2025 to $3.09 in 2030.

Algorithm-based website AI Pickup also had a moderately bullish long-term forecast for XLM/USD. According to the platform, XLM could average $0.09 throughout 2022 and 2023, which would finally rise to an averages of $0.12 in 2024, $0.14 in 2025, $0.18 in 2026 and $0.27 in 2027. The website’s Stellar Lumens price forecast for 2030 saw the token rising to average $1.28 that year.

If you are considering investing in stellar lumens, it’s important to remember that crypto markets remain very volatile, making it difficult to accurately forecast the price of a coin or token within a few hours, and even more difficult to give long-term estimates. As a result, analysts and algorithm-based predictors can and do get their XLM price predictions wrong.

We recommend that you always conduct your own research. Check out the latest market trends, news, technical and fundamental analysis, and expert advice to come up with your own stellar lumens coin price prediction before making any investment or trading decision. Remember, past price performance is no guarantee of future returns. Never invest more funds than you can afford to lose.

 

Stellar Lumens (XLM) price prediction: Is Stellar Lumens a good investment 2022?

It might be. The coin certainly did very well last year, increasing in value from $0.13 at the beginning of the year to $0.27 at the close of 2021. While it is worth less than that at the time of this writing (August 19, 2022), it at least has the potential to recover. With that said, you do need to proceed with caution. Keep in mind that cryptocurrencies can be highly volatile, and prices can go down as well as up. You need to do your own research and never invest more than you can afford to lose.

 

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