Launched in 2014, Stellar is a payment protocol based on blockchains. It advertises itself as an open-source distributed payments infrastructure which seeks to create an open worldwide financial network.
The overall goal of this project is to connect individuals, institutions, and payment systems. The Stellar team aims at simplifying monetary transactions by making them quicker, cheaper, and highly reliable.
The Stellar Lumens, an altcoin based on this platform and hit the news waves at the beginning of this year, has successfully defended its position over time. Abbreviated as XLM, the altcoin has proven to be one of the most resilient in this murky industry.
And the industry is indeed troublesome, going by the fact that XLM price is currently 60 percent less than its glory years.
As much as XLM continues to suffer, it is quite interesting to see Stellar hasn’t given up on development. The price charts may be discouraging but the spirited effort to enhance the technology paints the picture of a brighter future. At a time when scammers and hackers are hovering all over the Internet, Stellar is eager to maintain legitimacy.
Whereas some people would be glad to see Stellar price return to .40 cents, there are some that want it to continue rising past $5 or more.
This article presents a detailed look into the altcoin’s price predictions and the many factors which are impacting these price changes. By evaluating actual price shifts over time, the article hopes to enlighten you on where the crypto is headed and whether or not it is a worthy investment.
One quick disclaimer though: even as you read this analysis, you are strongly advised to also consult a financial expert before making a major investment decision. Consider this as part of your research to learn more about XLM and decide the best way to proceed.
Stellar Lumens Current Price
At the time of this publication, the Stellar Lumens price stood at $0.071546 and a 24-hour trading volume of $157,364,431. This represented a 0.4% decline in price over the past 24 hours. The current circulating coins are 20.2 billion and an expected max of 104 Billion coins.
Different online reviews continue to express optimism about this altcoin. More than 80% of those reviewed stating that they feel confident about the future of XLM.
This is an interesting position, given that there are more than 1600 cryptocurrencies and many are actually doing way better than Stellar Lumens. The kind of loyalty expressed towards XLM is a clear indication that provided the cryptocurrency maintains a solid media image, it would not have much hard time.
Past Price Changes
The altcoin has undergone quite peculiar price changes in the past. When XLM first hit the markets in 2014, it was close to worth noting. Even though the creator had come from Ripple itself and even adopted Ripple technology in different segments, Stellar Lumens still needed more time to earn recognition.
The Stellar team dedicated a whole 2 years of work for their cryptocurrency to receive the much-deserved breakthrough. And when it did, the altcoin introduced itself with so much vigor and strength.
Stellar Lumens XLM left nothing to chance. It is as if the creators had been planning this all along. It recorded highs that it has not been able to achieve again since then until November 2017 when it proved wrong the skeptics.
At the start of 2018, the crypto was trading at $0.08. Some might consider this as not being much but then you might want to review the Stellar worth at this point, which stood at 13.5 million dollars. This was a much higher worth than any other crypto with an exception of Bitcoin.
But then, as it has been proved from time and again, what goes up in the world of crypto will surely have a time when it will go down. Stellar Lumens was not an exception either. Since the highs recorded in 208, the crypto began declining rapidly until the current trading rate of about $0.07.
The overall percentage decline is 60%. It is worth noting that this percentage is considerably favorable when compared to the 95% loss in value we have witnessed in most cryptos out there. Severe as it may be, this only speaks volumes that investors consider the altcoin to be legit and one that’s worth their time and money.
What does the future XLM look like? Before we can make a prediction of the future, we must, first of all, understand what is impacting these drastic market changes.
Factors Affecting Stellar Lumens Price Changes
As attested by the above historical price changes of Stellar Lumens, it is clear that there are a set of factors which make the altcoin’s prices to fluctuate. You do not have to regularly check your wallet to know that.
Below are some of the factors that make XLM to experience price fluctuations.
- Supply and Demand
The concepts of supply and demand are the most basic in economics. The two are related in that when supply is high, demand declines and when supply declines, demand increases. Under this concept, the price of this coin is determined by its availability. As users go through a hard time to obtain it, the higher the price increases.
Stellar Lumens is set to have a cap of 104 Billion coins. At the moment, the coins in supply stand at 20 Billion coins. These will continue increasing until the cap is reached. The perception created at the moment is that we have more of these coins, hence people feel less need to rush in getting more.
With the declined demand, the prices are sure to lower as already witnessed. In the long run, the cap in supply means that the quantities available will remain the same even as more people seek to be enrolled in the cryptocurrency. The end result will be an increase in price. However, that is not set to happen any time soon.
Another factor that comes in handy in determining the price of XLM is the level of difficulty in mining it. Mining refers to the process by which transactions are validated and added to the blockchain. Consider Stellar Lumens as an example.
This coin’s level of difficulty in mining is at its minimal. Maybe that’s because there are still more billions of coins to be mined. You do not necessarily need expensive and powerful computing resources as you would in the case of Bitcoin.
That is because there not so many mining pools as the latter does. Due to the decreased level of difficulty in Stellar Lumens mining, you wouldn’t expect its price to be as high as that of BTC.
The media is one of the most powerful resources that can be used to manipulate the masses. Newsfeeds could either create confidence or instill fear in the public. If a high profile event takes place and the media highlights it, you can expect that there will be changes in price.
China is one of the few countries that have negatively impacted the crypto so far. In September 2017, the Chinese government banned ICO. This triggered panic which resulted in the decline of the cryptocurrency price alongside many others including Bitcoin.
This factor is mostly impactful in short-term forecasts. News can be from different sources. Some could be political and others systematic. For instance, Chinese and South Korean exchanges recently faced numerous turmoil which led to the collapse of Bitcoin and many other altcoins, Stellar Lumens included.
On the other hand, systematic sources have to do with radical changes in the operation of a platform which scales the market. Thus, it is paramount that we keep up with the latest news announcements and technical developments.
Even as you do so, be sure that the information you are getting is not manipulated to influence the price for the benefit of a few individuals.
- Economic Factors
Global financial instability reduces humanity’s faith in fiat currency and motivates the need to come up with an alternative way to transact. This has to do with factors like devaluation, inflation, and reliance on emitters.
While we all frown upon the demerits of centralized systems, we must also keep in mind that the cryptocurrency market is still young and vulnerable to immense volatility. With such strong volatility, the use of crypto as a means of payment is greatly impacted.
As Stellar Lumens matures, it gains ground and more people develop trust in it. In the long run, the crypto will be well established and gain stability in its price.
These are just a few of the many factors that impact the price of this young and promising altcoin. Having understood these, we can look into what the future holds.
Future Price Predictions
Stellar Lumens presents itself as one of those projects that will continue expanding in the future as its technology advances. As 2019 comes towards the end, more technological investments have been made in enhancing the quality of this crypto.
Massive technologies and new partnerships come in handy in establishing a global user base. Stellar Lumens creators have been serious in doing so and this has helped increase the altcoin’s worth.
By the time we get to 2021 and beyond, the cryptocurrency world will have changed significantly from what we currently know. Many of the projects that began in 2017, 2018, and 2019 are set to have matured by then and we cannot tell which ones will be leading.
However, whatever that happens then, experts expect that Stellar Lumens will still be around. In fact, it is predicted that this altcoin will be a major player then.
Stellar Lumens is quite a complex network and one which no one cannot claim to understand 100 percent. We may not explore all that goes on beneath the Stellar but one thing for sure is that this is a force to reckon.
XLM is not going away anytime soon, and you might as well enlist it as one of your investment options. Just be sure to conduct personal detailed research.
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