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Stellar Price Prediction 2024: XLM Price Analysis

Last Updated June 27, 2024 1:42 PM
Giuseppe Ciccomascolo
Last Updated June 27, 2024 1:42 PM

Key Takeaways

  • XLM is one of the longer-standing cryptos, founded in 2014.
  • The Stellar blockchain was a hard fork from Ripple and was co-founded by XRP creator Jed McCaleb.
  • XLM recently launched an upgrade.
  • One Stellar price prediction said the coin would get to $0.22 next year.

Stellar’s XLM has stagnated somewhat recently. The Ripple hard fork had gone up after a new upgrade was launched, but still underperformed in 2023.

The new year didn’t start on a positive note for Stellar as the price dropped under one cent with no immediate sign of recovery on the horizon.

On June 27, 2024, Stellar was worth about $0.08896.

Stellar did not respond to a request for comment

Let’s take a look at our Stellar price prediction, made on June 27 2024. We will also examine the Stellar price history, as well as talking a little about what Stellar is and what it does.

Stellar Price Prediction

Let’s examine some of the Stellar price predictions CCN.com made on June 27, 2024. It is crucial to bear in mind that price forecasts, particularly for a potentially volatile asset like cryptocurrency, often turn out to be inaccurate.

Minimum XLM Price Prediction Average XLM Price Prediction Maximum XLM Price Prediction
2024 $0.0798 $0.18 $0.19
2025 $0.19 $0.21 $0.22
2030 $0.60 $0.66 $0.67

Stellar Price Prediction for 2024

If the positive momentum continues and XLM breaks above its moving averages, it could reach targets between $0.0798 and $0.19 by the end of 2024, with the average price set at $0.18.

Stellar Price Prediction for 2025

Technical analysis suggests a potential increase for XLM in 2025. The minimum Stellar price expected for 2025 is $0.19 while the maximum one is $0.22. In the middle, it may reach $0.21.

Stellar Price Prediction for 2030

Based on technical analysis, the XLM token may reach a maximum level of $0.67 at the beginning of the next decade, while, in the worst scenario, it may go to $0.60. The average expected price is $0.66.

Stelar Price Analysis

Stellar is currently in a downward trend channel for the medium to long term, indicating negative performance and decreasing investor interest. The price chart shows no support, suggesting the possibility of further decline.

XLM price analysis
XLM price analysis. | Credit: Giuseppe Fabio Ciccomascolo/Investtech

If there is a positive reaction, resistance is at 0.1 points. The negative volume balance, with high volume on down days and low volume on up days, weakens the currency.

The RSI is below 30 following recent price drops, indicating strong negative momentum and potential for further decline. However, in large stocks, a low RSI can indicate that the stock is oversold and might experience an upward reaction. The falling trend in the RSI curve, therefore, reinforces the negative trend.

Stellar Price Performance Comparisons

Current Price One Year Ago Price Change
Stellar $0.08896 $0.1004 -5.2%
Ripple $0.4668 $0.4652 -2.4%
Tron $0.1231 $0.07374 -65%
Cardano $0.3787 $0.2672 +34%

Advantages and Disadvantages of Stellar

CCN’s Senior Research Analyst Toghrul Aliyev took a deep dive into Stellar and found the following advantages and disadvantages.

Advantages of Stellar

  • Low Transaction Costs : Stellar’s average transaction cost is about 4,000-5,000 stroops, or 0.0004-0.0005 XLM, which is a fraction of a cent. To put it in perspective, it takes more than 20,000 transactions to spend just $1.
Stellar Transaction Fees
Credit: IntoTheBlock
  • Fast Transaction Speed: Stellar’s transactions are fast, averaging 5.19 seconds per transaction.
  • Efficient Cross-Border and Cross-Exchange Transactions: Stellar excels in international payments and transfers between exchanges due to its fast transaction speed, low costs, and relatively stable price throughout the day. Users can move funds quickly and inexpensively, minimizing the risk of losing value during transactions.
  • Real-world Asset Tokenization: Stellar has more than $400 billion in commodities  and US Treasuries  tokenized on its network, making it the second largest in the world after Ethereum.
  • Safety Advantage: Stellar prioritizes safety to ensure transaction integrity. By requiring consensus from trusted nodes, Stellar reduces the likelihood of conflicting transactions and double-spending attacks.Stellar Price History
Stellar Market Cap Comparison
Credit: rwa.xyz

Disadvantages of Stellar

  • Competition: Stellar faces strong competition from other blockchain networks and payment systems, such as Ripple. This can affect its market position.
  • Large Holdings by SDF: As of June 2024, the Stellar Development Foundation (SDF) holds 20,592,611,381 XLM , which accounts for 70% of the circulating supply  and 41% of the total supply. The significant concentration of ownership poses a risk, as any large-scale movement or sale of these tokens by SDF could influence the market price and create volatility.
  • Low Developer Activity : Stellar has relatively low developer activity, with only 500 weekly commits, ranking 42nd overall. It ranks 68th in sub-ecosystems with 12 sub-ecosystems, 46th in repositories with about 2000 repos, and 41st in weekly active developers with 92 developers . This low level of developer engagement can impact the network’s growth and innovation.
  • Centralization : The structure of quorum slices in Stellar creates centralization. Each node selects a set of trusted nodes, forming its quorum slice, in order to agree on transactions. Many nodes often choose the same few trusted entities, such as those controlled by the Stellar Development Foundation. The concentration of trust can, meanwhile, lead to network centralization and vulnerability, where the failure or compromise of these key nodes could halt the entire network.
  • Reliance on Trusted Nodes: Stellar’s increased safety relies heavily on the assumption that trusted nodes will not fail or act maliciously. While the network is safer from certain attacks, it remains vulnerable to centralization issues if these assumptions do not hold.
  • Liveness: Prioritizing safety over liveness can halt the network if specific nodes fail or are compromised. This trade-off can, therefore, cause significant downtimes.
  • Limited Validator Participation: The network only has 44 full validators . Not all asset issuers and exchanges run public validators, leading to potential discrepancies in consensus.

Stellar Price History

Let’s now take a look at some of the key dates in the Stellar price history . While past performance should never be taken as an indicator of future results, knowing what the coin has done can help give us some very useful context when it comes to either making or interpreting a Stellar price prediction.
Stellar price history
Stellar price in 2023 and 2024. | Credit: CoinMarketCap

 

Time period Fantom price
Last week (June 20, 2024) $0.09474
Last month (May 27, 2024) $0.1079
Three months ago (March 27, 2024) $0.1382
One year ago (June 27, 2024) $0.1004
Launch price (August 6, 2014) $0.002373
All-time high (January 7, 2018) $0.7097
All-time low (August 6, 2014) $0.002373

Stellar Supply and Distribution Fact Box

Supply and distribution Figures
Maximum supply 50,001,806,812
Circulating supply as of June 27, 2024 29,144,843,850 (58% of the maximum supply)

From the Whitepaper

In its technical documentation or whitepaper , Stellar says it aims to fix the problem of closed financial systems. 

It says: “We need a worldwide financial network open to anyone so that new organizations can join and extend financial access to unserved communities. The challenge for such a network is ensuring participants record transactions correctly. 

“With a low barrier to entry, users won’t trust providers to police themselves. With worldwide reach, providers won’t all trust a single entity to operate the network. 

“A compelling alternative is a decentralized system in which participants together ensure integrity by agreeing on the validity of one another’s transactions. Such agreement hinges on a mechanism for worldwide consensus.”

What Is Stellar?

The Stellar  blockchain is designed to make transactions quicker, and cheaper.  Crypto entrepreneur Jed McCaleb, better known for his involvement in Ripple’s XRP cryptocurrency, and lawyer Joyce Kim founded it. 

The system, which is a spin-off from Ripple, allows people to easily transfer assets, including but not limited to fiat currency, into crypto. 

Stellar is supported by its native token, properly called Stellar Lumens but often just referred to as either Stellar or by its ticker handle, XLM. 

How Stellar Works

Stellar uses a platform called Stellar Core which is based on technology called Horizon 2.0. Stellar has three kinds of network operators or nodes. 

Full Validators submit transactions, validate transactions, and publish history. Basic Validators submit and validate transactions, while Archivers can submit transactions and publish history.

In terms of XLM, it allows to pay for transactions on the network, and it is also used to reward node operators. Holders can create their own, new, tokens, and they can also be bought, sold, and traded on exchanges.

Is Stellar a Good Investment?

Stellar is one of crypto’s medium-sized institutions and has been a fixture of the second tier for a long time. 

XLM has been performing pretty weakly over the last two years or so. We still don’t know whether it can capitalize on new developments. 

On the other hand, it does have a strong base of both developers and investors. Updates and improvements to the Stellar platform occur all the time.

As ever with crypto, you will need to make sure you do your research before deciding whether or not to invest in XLM.

Will Stellar go up or down?

No one can tell right now. While the Stellar crypto price predictions are largely positive, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up. 

Should I invest in Stellar?

Before you decide whether or not to invest in Stellar, you will have to do your research, not only on XLM, but on other, similar, coins and tokens such as Ethereum (ETH) or Solana (SOL). Either way, you will also need to make sure that you never invest more money than you can afford to lose.

Stellar Attention Tracker

Stellar (XLM) Google search volume
Stellar (XLM) Google search volume. | Credit: Google

Here is a chart for the Stellar (XLM) Google search volume for the past 90 days. This represents how many times the term “Stellar (XLM)” has been Googled over the previous 90 days.

FAQs 

How many Stellar are there?

On June 27, 2024, there were 29.1 billion XLM in circulation, out of a maximum supply of 50 billion.

Will Stellar Reach $1?

It could happen but, if it does, it won’t be in this decade.

Keep in mind that XLM has never traded above $1, with its all time high of $0.7097 coming more than six years ago.

What is Stellar used for?

The XLM crypto pays for transactions on the Stellar blockchain. People can also buy, sell, and trade it on exchanges. 

Further reading

Disclaimer 

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability, and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto user should research multiple viewpoints and be familiar with all local regulations before committing to an investment.