With the development of the crypto sphere, more and more investors dive into this potential pool and try to figure out which cryptocurrencies are worth invest. In this post, we will explore the new coin Stellar Lumens and the Stellar Lumens Price Prediction.
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What is Stellar Lumens?
Lumens (XLM) is the main cryptocurrency that belongs to Stellar, which is an open-source payment system. XLM was originally designed to make money transfers easier globally using the blockchain software platform, as a decentralized money transfer structure. The XLM currency uses Lumen tokens to pay for the transaction fees, which reduced overall spam.
XLM can trace its roots to 2014 when it was founded by Jed McCaleb and attorney Joyce Kim. The founders had problems with Ripple’s (XPR) management team. Due to this, they later decided to start their own cryptocurrency. XLM currently works on projects spanning the world that would help or strengthen the Stellar platform. For example, the management at Stellar recently invested $15 million in a Mexican digital wallet and peer-to-peer exchange company. They have also made investments in other fintech companies such as Cowrie, Tribal Credit, and Wyre. All of which are designed to reinforce and stabilize XLM in the overall market.
Stellar Lumens Price History
In August of 2014, the year of introduction, Stellar Lumens had a price of just $0.0027 per coin. The price of the coin remained about the same, fluctuating between $0.0015 and $0.0060 until 2017. After 2017, the price of the coin start to increase drastically. By the end of 2017, the price per coin was about $0.031 and reached an all-time high price of $0.93 per coin by early 2018. After reaching its peak price, its value plummeted significantly in the following months. The decline followed a pattern of lower lows and higher lows. The price of the coin somewhat stabilized at a price of around $0.10, hovering between $0.045 and $0.133 from mid-2019 till the end of 2020.
After the 2-year dormancy stage, the price started to follow a pattern of higher highs and lower lows in late 2020. The price of the coin continued to increase until it reached a peak of $0.735 in mid-May of 2021. The price of the coin, once again, decreased significantly following the peak. Currently, the price of the coin is hovering at around $0.24 and is on a downward path. The price being about $0.40 just 1 month ago in May. The main reason for the price decrease is the banning of cryptocurrencies in China and the subsequent pull out of investment funds from the coin. This allowed the price of the coin to drop even further.
The market capitalization of XLM is currently about $5.5 billion. It is down significantly from the past few months when it peaked at more than $16.5 billion in mid-May of 2021. The market capitalization has been decreasing ever since and shows no signs of an upward rebound. This is also taking into account a new supply of XLM into the market from cryptocurrency miners around the world.
Stellar Lumens Price Prediction
In May of 2021, China set to ban all cryptocurrency mining. Due to the ban, all cryptocurrencies have seen a significant decline in their value after the announcement. China is the largest country for miners. It produces about 60% – 70% of the world’s cryptocurrency mining capacity and with their shutdown, the crypto market will be severely negatively impacted. Due to this, the global cryptocurrency market saw a withdrawal of funds in the 100’s of billions. The market has yet to see investors reinvest into the market. The ban impacts Stellar Lumens as well as all other cryptocurrencies as well.
Stellar Lumens Price Prediction 2021
With the significant withdrawal of capital from the crypto market, the price prediction for Stellar Lumens in 2021 is $0.35. The reason why the price prediction is not significantly higher than the current price of about $0.24 (at the time of writing) is mainly due to the crypto ban by china. It is also partially due to the lack of investment inflow into the crypto market from investors who are still hesitant of investing into cryptocurrencies after the severe decline in May. Investors also fear a bigger sell off later this year, forcing the price to decline even further.
Stellar Lumens Price Prediction 2025
By 2025, many cryptocurrency miners that are based in China have now found new locations to start mining cryptocurrencies. Companies are now moving to new locations to mine in, such as Kazakhstan, India, and the United States. Stellar Lumens is expected to stabilize once these miners are able to start their operations in new countries. Crypto investors are then able to regain their confidence in the crypto market. Once investors start to reinvest, the market will see positive gains in the coming years. By 2025, the expected price for the coin will be $5.18.
Stellar Lumens(xlm) Price Prediction
By the year 2030, the cryptocurrency market would have fully stabilized and many investors would have reinvested their capital into the market. With miners moving, while also expanding their mining operations, it will stabilize the market even further. As developing markets start to grow, more individuals from those countries will start to invest in crypto markets. This would add billions into the market, which would further drive the price upwards. Taking into account the market value of the coin, current volume, market capitalization, future market forces, and events, the price prediction for Stellar Lumens for the year 2030 is $14.45.
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Is Stellar Lumens A Good Investment?
Overall, Stellar Lumens would be a great investment, but not in the short term. Taking into account the short-term impact of the Chinese ban and thousands of investors around the world withdrawing their capital from the market, Stellar Lumens would not make a good investment for 2021.
However, Stellar Lumens would not be a good investment, it would make an excellent investment. Long-term potential is exceptional, mainly due to emerging and developing markets, stabilizing markets, more miners, and investor confidence increasing around the world. 2021 is proving to be similar to the year 2018, in which the cryptocurrency market, particularly Bitcoin. 2018 saw significant declines, and many investors were left to wonder, is this the end of cryptocurrencies? 3 years later has proved that it is not the end of cryptocurrencies, it is just the start.