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One of the largest potential use cases for crypto is payments. Many believe that the accessibility and decentralization of crypto offer a better alternative than the traditional system of exchange. However, with tens of thousands of cryptocurrencies, the logistics of payments can become complex. For example, you cannot send Ethereum to a Bitcoin wallet. Stellar Lumens is hoping to provide a solution for this issue through a unique token-swapping protocol.
What is Stellar Lumens (XLM)?
Stellar Lumens is a distributed open-source blockchain that allows for the transfer of cryptocurrency across blockchains. The goals of the project are to permit fast and affordable swapping of tokens, encourage worldwide use and connect the many players in the crypto sphere.
To accomplish this, Stellar Lumens developed automation for swaps and transfers. Without Stellar Lumens, if you wanted to send ETH to a BTC wallet, you would have to buy ETH, send it to a wallet, swap it for BTC on a decentralized exchange (DEX) and then send it to the BTC wallet. Stellar Lumens combined the different protocols needed and automated the process. If you want to send ETH to a BTC wallet, the protocol will automatically swap ETH for XLM, swap the XLM for BTC and then send the BTC to the specified location. To the user, it essentially allows for the automatic payment of ETH to a BTC wallet, something that was not possible previously. Additionally, since all of the processes are in one place, it drastically lowers transaction costs.
Stellar Lumens relies on XLM for multiple purposes. The token powers the chain and can be used for transaction fees and as an intermediary in exchange.
In terms of use cases, the project was initially created to bring banking to developing countries and give them access to a more reliable form of payment. Since then, it has developed more into looking at use cases in the financial sector, helping banks and other large players connect with each other via cryptocurrency.
Stellar Lumens (XLM) Market Position
As of right now, XLM trades for around $0.10, with a market capitalization of around $2.5 billion. Its all-time-high price was around $0.75, with a market cap of around $17 billion in May 2021. Its largest competitor is Ripple (XRP), another protocol offering somewhat similar services.
Cryptopolitan’s Bullish Long-Term Stellar Lumens (XLM) Price Prediction
Shawn Du’Mmett of Cryptopolitan, a cryptocurrency news site, has a bullish outlook on XLM over the course of the next decade. He sees government regulation and technological advancements as giving the project a better market position. In terms of price, he sees XLM reaching $0.50 by 2025 and $2.28 by 2031.
Bankless Times’ Bearish Long-Term Stellar Lumens (XLM) Price Prediction
Crispus Nyaga is a financial analyst for Bankless Times. He is bearish on XLM because Binance recently forced customers to use its own stablecoin BUSD instead of other alternatives like XLM. Stellar Lumens partners with Circle, the company that created USDC. Additionally, the increased demand for BUSD could lead to a decreased demand for XLM. Because of this, his Stellar Lumens price prediction is bearish.
2020s Stellar Lumens (XLM) Price Predictions
Recently, useful sites that create 10+ year forecasts for cryptocurrencies have started to crop up. Most rely on artificial intelligence (AI) to make these predictions. They may have created some method for predicting prices and then let the program do the rest. Because of this, the forecasts should be taken with a grain of salt. They will almost certainly be inaccurate. However, they can still provide some value. For example, they could show a feasible range of outcomes or show what the general market consensus looks like.
2023 XLM Price Prediction
Changelly sees XLM trading for an average of $0.17 in 2023. Priceprediction.net also sees it trading in a similar range, around $0.16 to $0.20. However, a market downturn or an outside event could render these predictions useless.
2024 XLM Price Prediction
Coin Price Forecast has XLM trading for around $0.15 at the end of 2024, while Coin Journal predicts XLM to be trading at $0.60. This substantial discrepancy only widens the farther you get from 2022.
2025 XLM Price Prediction
Changelly has predicted a price of $0.34 in 2025, for a potential ROI of over 350%. Wallet Investor predicts a price of $1.29, creating another large discrepancy between forecasts.
2026 XLM Price Prediction
Coin Price Forecast has XLM trading for around $0.20 at the end of 2026. This level contrasts Coin Journal, which predicts a price of just under $1.00.
2027 XLM Price Prediction
Changelly predicts the price of XLM to reach $0.70 to $0.85 in 2027, while Priceprediction.net set its forecast at $0.74. While these predictions are fairly close, the reality may be much more different.
2030 XLM Price Prediction
In 2030, Coin Price Forecast sees the price of XLM at around $0.30, while Coin Journal set an estimate of $5.87. As you can tell, these estimates are all very different. While they are all probably off, they can still give some insight into potential outcomes.
Where to Buy Stellar Lumens (XLM)
The top trading platforms that offer XLM are Coinbase and eToro. These sites are known for their security, ease of use and low fees. To get started, create an account, verify it and fund it using a bank or ACH transfer. From there, you are ready to begin trading.
How Long Will It Take for Stellar Lumens (XLM) to Reach $0.25?
The last time XLM traded for $0.25 was in January 2022. Since then, the crypto markets have declined significantly. However, XLM has declined somewhat less than the overall markets during this time. Because of this, it may take less time for the coin to recover than the entire crypto market. Additionally, increased use of the platform could cause a spike in price and bring it back to this level. Conversely, a further downturn in the markets or issues on the development side of the project could drop the price further from the $0.25 price target.
Where to Store Stellar Lumens (XLM) Safely
While it is perhaps easiest to store your crypto on a trading platform, it can be vulnerable to cyber-attacks and does not allow users much discretion over their tokens. Wallets give users full control over their tokens and can be safer than holding them on an exchange.
Best Hardware Wallet: Ledger
Ledger is a leading brand of hardware wallet. Hardware wallets are physical devices that store the keys needed to send crypto and are considered the safest way to store crypto.
Ledger offers Nano S and Nano X models. The Nano S is the basic hardware wallet offering, with just the necessary features. The Nano X supports even-greater ease of use, with Bluetooth connectivity and a larger screen. Ledgers support more than 1,000 different cryptos including Bitcoin, Ethereum, Dogecoin, Ripple, Stellar Lumens, all ERC-20 tokens and many more.
Best Software Wallet: MetaMask
Software wallets store private keys online and are password-protected, which is not as safe as a hardware wallet but is still safe. MetaMask is the leading software wallet and offers compatibility with a large number of blockchains. It is also easily usable, as it is a Google Chrome extension.
Current Crypto Prices
The crypto markets are a bit all over the place, with some tokens collapsing due to FTX’s recent insolvency issues and others surging.
If you want to see where your favorite tokens are, make sure to check out Benzinga’s up-to-date price table.
So, Is Stellar Lumens (XLM) a Good Investment?
XLM’s success is dependent on multiple factors. First, if the project can further its use cases and extend its offerings to larger financial institutions, then there could be room for growth. Additionally, increased regulation in the crypto sphere could cause some to lean on Stellar Lumens for automation and token transfers. Finally, the project is subject to market risk. If you are bullish on all three of these factors, then XLM may be a good investment for you.
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About Caden Pok
Caden has been involved with crypto since 2018, when he began investing, trading, and mining tokens. He took part in undergraduate research studying cryptoeconomics at the University of Michigan, where he will graduate Phi Beta Kappa with a bachelor’s in economics in 2025. He is experienced with DeFi technology and multiple blockchains, currently investing in Ethereum and Bitcoin.