Stellar’s XLM has been on an upturn lately. The Ripple hard fork shot up after it teased “something cool” would happen on September 12 on its Twitter feed.
It posted: “Something cool is dropping in 10 days. Get ready to gear up for a change that’s got us all excited. Stay curious.”
While Stellar did not expand on its upcoming news, the coin broke past $0.12 for the first time in weeks.
Bitcoin did not immediately respond to a request for comment
But what is Stellar (XLM)? How does Stellar work? Let’s see what we can find out, and also take a look at some of the Stellar Price Predictions that were being made as of September 5 2023.
Let’s examine some of the Stellar price predictions being made on September 5 2023. It is crucial to bear in mind that price forecasts, particularly for a potentially volatile asset like cryptocurrency, often turn out to be inaccurate. Additionally, please remember that many long-term crypto price predictions are generated using algorithms, which means they can change at any time.
First, CoinCodex had a short-term Stellar price prediction which had drop to $0.1205 on September 9 before climbing to $0.1377 by October 4. The site’s technical analysis was bullish, with 22 indicators sending upbeat signals and just six making bearish ones.
Bitnation said Stellar would reach at $0.44 in 2025, a cent higher than DigitalCoinPrice’s Stellar price forecast of $0.43. Again, PricePrediction.net was the most cautious, saying XLM would be worth $0.32 in two years time.
Looking at a more long-term Stellar price prediction, PricePrediction.net said it would get to $2.26 in 2030. Bitnation said it would be worth $1.08. DigitalCoinPrice made an XLM price prediction that had it at $1.31 at the start of the next decade.
Stellar’s Twitter announcement boosted the price of XLM, which has risen nearly 15% from the $0.1116 it was worth on September 2.
The news came not long after Stellar revealed that it had invested money in transfer business Moneygram. The blockchain now has a seat on Moneygram’s board
Let’s now take a look at some of the Stellar price history . While we should never take past performance 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.
XLM first came onto the open market in 2014, when it was worth about $0.003. It rose past the cent in 2017 and, when crypto experienced a bubble late that year and early the next, the coin responded. Stellar traded at what remains an all-time high of $0.9381 on January 4 2018.
It then fell down as the market entered a so-called crypto winter, falling below $0.10 in 2019 and not recovering until November 2020.
XLM had something of a revival as the crypto market flourished in 2021. It reached a high of $0.6898 on April 14, before dropping down over the summer. Stellar recovered past $0.40 in the autumn and closed the year at $0.27.
2022 was less encouraging for both the general market and for Stellar itself. The coin fell perilously close to $0.10 in May and June. Although XLM made something of a recovery later on in the summer, the collapse of the FTX exchange in November saw it drop below $0.10. Stellar closed the year at $0.0711, an annual loss of nearly 75%.
So far, 2023 has not exactly been stunning for XLM. Although it rose above $0.10 in late March and stayed there until the middle of April, it fell back down.
On June 15, as the crypto market was shaken following the news that the SEC was suing Binance and Coinbase, Stellar sank to a low of $0.0753. After that, it made a recovery. July’s news that a court had found Ripple’s XRP crypto was not a security if it was being traded on exchanges boosted the market. XLM responded well, reaching $0.1793 on July 20.
August saw more of a downturn. The market collapsed when Elon Musk’s SpaceX sold millions of dollars worth of Bitcoin (BTC) and XLM dropped to $0.1076 on August 17. Since then, there has been something of a recovery. On September 5 2023, Stellar was worth about $0.1265.
At that time, there were 27.4 billion XLM in circulation out of a total supply of 50 billion. This gave the coin a market cap of about $3.4 billion, making it the 19th largest crypto by that metric.
Stellar is one of the medium-sized institutions in the crypto space and has been a fixture of the second-tier for a long time.
XLM has been performing pretty weakly over the last 18 months or so,. Itremains to be seen whether it can capitalize on new developments. Whether what happens on September 12 is a game-changer or a damp squib remains to be seen.
On the other hand, it does have a strong base of both developers and investors. Updates and improvements are being made to the Stellar platform all the time.
As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in XLM.
No one can really 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.
Before you decide whether or not to invest in Stellar, you will have to do your own 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.
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.”
The Stellar blockchain is designed to make transactions quicker, and cheaper. Set up in 2014 by crypto entrepreneur Jed McCaleb, better known for his involvement in the Ripple (XRP) cryptocurrency, and lawyer Joyce Kim.
The system, which is a spin-off from Ripple, is designed to allow 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.
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 is used to pay for transactions on the network, and it is used to reward node operators. Holders can create their own, new, tokens, and it can also be bought, sold, and traded on exchanges.
On September 5 2023, there were 27.4 billion XLM in circulation out of a total supply of 50 billion.
It could happen but, if it does, it won’t be for some time. PricePrediction.net says it in 2028, while DigitalCoinPrice and Bitnation have it break past the dollar in 2030. Keep in mind that XLM has never traded above $1, with its all time high of $0.9381 coming more than five years ago.
The XLM crypto pays for transactions on the Stellar blockchain. People can also buy, sell, and trade it on exchanges.
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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 users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.