After several UPs and DOWNs of the cryptocurrency market in 2020, we see now a rising demand. So it’s time for a Stellar (XLM) price prediction for 2021.
What is Stellar
Stellar is a distributed, hybrid blockchain that is fully open-source. It is the infrastructure that exists to facilitate cross-asset transfers of value, including payments.
At first, the cryptocurrency was known as Stellars, but the name was changed to Lumens in 2015.
It was made by Jed McCaleb who had been, before this, among Ripple’s co-founders. McCaleb left Ripple to pursue another vision, which was a more versatile blockchain network.
Initially, Stellars was based on pretty much the identical blockchain as Ripple, but the machine didn’t work well. Sooner or later, it crashed the system, so the company produced a different technology.
The Stellar Network is much larger than just the Foundation. It includes financial institutions, payment aggregators, and technical specialists committed to supporting a new and inclusive global infrastructure for payments.
Several big companies joined forces with Stellar. To name a few: IBM, Deloitte, Stripe, ICI Bank etc. You have the full list here.
In a hurry?
More about the technology
Stellar allows you to freely send money across borders without the hassle of formal banking procedures or currency exchange. This multi-currency exchange process is pretty ingenious, and it offers users a flexible approach to easily swap currencies on an international scale.
Stellar Lumens transactions are also listed on a distributed ledger. But, unlike other cryptocurrencies that require miners to keep up the ledger, Lumens uses another technology – Stellar Consensus Protocol. This new technology is based on a consensus algorithm rather than mining and was the first protected construction of a federated governmental arrangement (FBA).
The system uses less electricity to confirm transactions, while at precisely the same time being faster. The business prides itself on processing transactions within 2 – 5 minutes, more quickly than additional cryptocurrencies.
This company intended to make a decentralised blockchain that wouldn’t require intermediaries like exchanges. Within the Stellar network, you may make your digital token that’s appreciated in whatever cryptocurrency or perhaps fiat currency.
Stellar (XLM) PROs and CONs
Stellar (XLM) PROs
- High Speed of Transactions – Each transaction gets validated in max of 5 sec.
- Low Transaction Costs
- It incorporates Tech Improvements like Blockchain Smart Contracts and multi signatures.
- Decentralisation of Stellar as the protocol doesn’t have a fixed number of validators.
- Partnerships with big names like IBM, Stripe and recently the government of Ukraine.
Stellar (XLM) CONs
- Minimum Limit for Having Access – You must have at least 20 XLM coins in your wallet.
- High Competition – One of the main competitors of Stellar is Ripple (more on this later).
Stellar (XLM) All-Time High Was in 2018
As you can see in the graph below, the all-time high of XLM was on January 26th of 2018. Then one XLM was worth $0.62 after a massive growth since the beginning of the year. For reference, on January 06th 2021, one stellar is around half of that at $0.32.
Stellar (XLM) Price Prediction for 2021
The company was focused on improving banking services from the developing world and the effort put in Nigeria, India, the Philippines and other African nations.
Recently, Stellar was picked by the Ukraine government to help them build its national digital currency. Stellar Development Foundation CEO Denelle Dixon said the partnership with Ukraine’s government and other stakeholders to digitize the hryvnia will officially launch this month.
The projects in these regions have already been successful, demonstrating that Stellar Lumens can function well. Its purpose was to facilitate cross-border obligations, allowing the exchange of fiat currencies.
However, later, has seen very rapid growth in partnerships with some major corporations. IBM already has its blockchain platforms, but they also partnered with Stellar Lumens to improve payment processing.
Other financial institutions such as Barclays and Deloitte also use Stellar Lumens to reduce the expense of transactions.
At the moment of writing, Stellar (XLM) is on the rise, at $0.32 after the recent announcement of Ukraine’s government. Also, because its main rival, Ripple is investigated by the SEC, XLM gets a part of its market share.
This is our XLM price prediction for 2021.
How to buy Stellar XLM
As we predicted, there is a good chance that Stellar Lumens price will increase over time, and there are several ways you could profit from that.
On the Stellar.org website, you may see a list of wallets that work with XLM they offer to the public.
If you’d like to purchase XLM to keep or use it online, you should use a reputable exchanger. Check CoinMarketCap for an up to date list of the most notable exchangers that work with Stellar Lumens. To name a few: Bittrex, Poloniex, Binance, Kraken.
After you get your Lumens, make sure you store it safely and watch the price evolution and sell it for cash or another cryptocurrency when you’re happy with the profit.
How to Trade XLM in 2021
Instead of holding Stellar XLM in a wallet, you can trade it on major sites. We recommend you eToro. You can even set X2 leverage but we do not recommend you as the cryptocurrency market is highly volatile.
Vote the price of XLM in 2021
Ok, so you’ve read our prediction. It’s your time now. Vote which price from the list below you think will be the most accurate at the end of 2021. You can leave your prediction in the comments form and we will organize a raffle with a prize in XLM!
Suppose Ripple was built for financial institutions and banking giants Stellar Lumenworkedrk for the common man. It has the potential to revamp how we process peer-to-peer transactions on a global scale.
Its versatility and use cases make it function like a Swiss clock. With Stellar, you can handle micro-payments with nominal fees, send remittances without fretting over currency exchange or bank transfers, and settle payments in real-time (2-5 seconds).
In conclusion, Stellar Lumens (XLM) is showing plenty of promise. We will keep an eye on the Stellar news. Regardless, similar to other digital coins, its price has been experiencing some volatility, though nothing compared to what Bitcoin has been going through lately. XLM at $1 per coin is not impossible by December 2021.
As always, making a Stellar coin price prediction for 2021 is a very tricky subject, and a lot of it is speculative. Tell us in the comments form below if you already invested in XLM or plan to do so.