Probably every person who has visited crypto market knows about Stellar Lumens platform. Sure thing, as this cryptographic currency masterfully holds the position in the top 10 by the market capitalization according to Coinmarketcap. Shocks and adversities didn’t get the coin out of the survivor’s cohort, although the price does not always please investors.
Well, is it a good investment? Should you buy it now? If you wanna find answers to these questions, read this op-ed. Our forecast should help you dot l’s and cross T’s.
What is Stellar?
Stellar is a decentralized platform with own cryptographic currency called XLM (Stellar Lumens). It is aimed to be an intermediate between the current financial world and non-centralized cryptocurrencies. The system is intended for fiat-crypto transfers, which makes it possible to perform cross-border transactions between any currency pair.
The platform has a unique Stellar Consensus Protocol (SCP), which is different from proof-of-work, proof-of-stake and other types of protocols. It allows for reaching consensus without using a closed system to record transactions and without unanimous consent (to solve scalability issue).
XLM Coin, Stellar Price Today
The main function of this virtual asset is ensuring settlements between users. According to the official website of the project, lumen (xlm) is a digital currency unit, like bitcoin. These coins provide the movement of money worldwide, fast and secure transactions, including exchange ones, between different currencies (crypto and fiat).
The coin showed startling growth in winter 2017-2018 surging from 0,03 in November 2017 to $0.93 in January 2018. The coin seemed more stable than most competitors. But eventually, it fell by 80% from ATH, which, given the bearish trend of 2018, corresponds to an average altcoin.
Like Bitcoin, Stellar coin is not very volatile now. And it seems to be more stable that many cryptos out of top 10 by market cap. Sometimes (when the market shows signs of life) XLM is pumped.
See the ticker below to know Stellar price today.
Where can you buy XLM? This coin is distinguishable and popular, so it has been listed at many exchanges:
- Exmo, etc.
Finding a trading platform which supports XLM is like shooting fish in a barrel.
News, Events, and Announcements
March 20, 2019, IBM announced the launch of World Wire, a global system of real-time payments, built on the Stellar network.
March 26, the company entered into a partnership with Coinbase to implement the Coinbase Earn program. This is an educational program from the top exchange, which is aimed at popularizing cryptocoins and informing the public about blockchain technology. As a reward for passing video lessons, you can get a little XLM on your wallet. In total, 1 billion coins were allocated for praiseworthy purposes.
The project has a profusion of plans for 2019-2020. The easiest way to get acquainted with an updated roadmap where they are spelled out. To put it shortly, here are the main positions:
- improved decentralization while maintaining performance;
- simplified node management;
- Stellar.org redesign;
- adding information content to the site and social networks;
- creating an open source wallet;
- improving productiveness of Lightning-like Payment Channels;
- personnel expansion, incl. creating a marketing team.
In the fall 2019, the company staff was replenished with several specialists. For example, the chief legal adviser was lured from Uber, where the lawyer, of course, practiced his profession.
There was a major update of Stellar core (v12.0.0). A cool feature was added: the ability to regulate both the amount of sending and the amount of receipt. An order to send Mr. X ten dollars and an order to receive eight euros by Mr. X become equivalent. The sender chooses the payment format.
The release of Horizon v0.22.0, which supports Protocol 12, gave users enough time to prepare for the new update on October 28th. This will be followed by the final update of 2019, which should expedite the work of the network, increase its safeness and guarantee the use of coins in heterogeneous sectors of the economy.
The company began close collaboration with the Blockchain Academy in Mexico. Specialists in the field of blockchain are trained on its basis.
Stellar (XLM) Price Prediction 2019, 2020
We are Stellar believers however we’ll try to impartially analyze the factors that may affect the price of this flagship cryptocurrency within next 12 months.
Positive factors that might affect the crypto’s price are as follows:
- According to the XLM graph, the coin is now somewhere at the bottom. It is unlikely that it will fall deeply or fall ever from this value.
- Stellar is a well-known platform and is a recognizable brand. Although it cannot be compared with such behemoths as Bitcoin or Ripple it holds good positions in the market and crypto community.
- The platform is in demand. There are many projects built on Stellar, in particular, SatoshiPay (a payment widget for the web), Blockbook (a system for creating avatars for Stellar users’ addresses), BlockEQ (a decentralized exchange), WeBuy (an on-demand advertising platform) and many others. On this website, you can find the catalog of the projects.
- The project has a powerful team, which consists of Jed McCaleb (a former Ripple developer), David Mazières (a professor of Computer Science at Stanford University), and other experienced people.
- Foretelling websites like Walletinvestor give it positive predictions. They also influence people’s opinions and their decision on whether to buy or not to buy this coin.
- Last but not least, the platform has received a certificate of compliance with Sharia Law. No other coin has gained such an adoption in Islamic states. This may contribute to the popularity of the crypto amongst Muslim people.
- Good trading volumes in pairs with this coin are observed.
To be more objective, we should analyze some factors that, in our opinion, may slow down Stellar Lumen’s growth. They’re as follows:
- According to research by Kevin Rooke, Stellar had only 676 daily active addresses as of beginning of September 2018. The crypto was placed on 24th place in Kevin’s list of cryptocurrencies that had more than 400 users in a 24-hour period. You can agree that it is not much. Even such less-known and less capitalized coins as Decred and PIVX featured more daily users.
- If the market does not break the bearish trend, this cryptocurrency will follow it. Judging by the historical retrospective, it does not have enough power to counter the market.
- That’s it! As noted by one Reddit users (icomaker) in the discussion about Stellar disadvantages, “nothing comes to mind”.
Despite potentially negative factors described above, Stellar Lumens long-term price may be surprising (in good sense).
We consider 2019 to be the most market dependent in terms of Stellar pricing. We do not detract from the merits of the project based on slippery bear story. By 2020 all the technical plans will be implemented, the marketing program will be adjusted, and the market would become warmer. Therefore, in 2020, we expect good growth, which would outperform the market average.
Find our short-term and long-term price forecast below.
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Disclaimer. This forecast is just our opinion on the coin’s future. Please don’t treat it as exact investment advice. Be sure to conduct your own analysis before purchasing any cryptocurrency on the highly volatile market. The table shows only approximate values that might be possible during specified time periods, so pay more attention to the abovementioned factors.