Should You (or Anyone) Buy Stellar (XLM)? (2024)

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Stellar Lumens dramatically reduces the cost of international transfers.

Key points

  • Stellar is a money-transfer platform that aims to help the world's financial systems work together on a single network.
  • Lumens (XLM) is Stellar's native cryptocurrency.
  • Money transfers can cost as much as 6.5%, but transactions on Stellar cost a fraction of this.

Stellar is a well-established cryptocurrency project that arguably got a little bit lost in the crypto frenzy of 2021. Price-wise, its Lumens token (XLM) gained about 100% last year, compared to other cryptos that gained 5,000% or more. However, it has been around since 2014, and spent much of that time in the top 50 cryptos by market capitalization, making it an interesting long-term prospect.

It's not a sexy programmable crypto like Ethereum (ETH) or Solana (SOL), though it is working on developing smart contract functionality. However, Stellar is all about money transfers, and money transfers are big business. Stellar lets people send money anywhere, whether it's dollars, Bitcoin (BTC), or euros. It aims to let all the world's financial systems work together on a single network.

XLM basics

Stellar is a remittance and money transfer platform, designed to make it easy to send money anywhere in the world quickly and cheaply. It's similar to another well-known crypto, Ripple (XRP), which is hardly surprising given that crypto-pioneer Jed McCaleb was involved in founding both projects. But where Ripple focuses on financial institutions, Stellar focuses on individuals.

  • What it does: XLM, or Lumens, is the native token on the Stellar platform. Users need to hold XLM to make transactions on the platform.
  • Management team: Cofounded by Jed McCaleb, David Mazières, and Joyce Kim.
  • Date launched: 2014
  • Market cap: $4.5 billion (CoinMarketCap, March 16)
  • Availability: Many major U.S. cryptocurrency exchanges

Should you buy?

Stellar is a solid cryptocurrency project. It has a strong team behind it and solves an important real-world problem -- the high costs of making international payments. It boasts a number of big partnerships, including MoneyGram, Circle (the company behind USDC), and IBM.

One question to ask of any cryptocurrency is what problem it solves, and whether there's a market for that solution. Stellar's ability to provide rapid and low-cost money transfers certainly addresses the very real issue of expensive money transfers. The World Bank estimates the global average cost of a remittance is around 6.5%. That means someone who's working in the U.S. and sending money home to their family in, say, El Salvador could lose $6.50 for every $100 they transfer. As to whether there's a market, according to Verified Market Research, the remittance market was around $16 billion in 2020, and could reach $40 billion by 2028.

All cryptocurrency investments are risky, so it's advisable to only invest money you can afford to lose. This is a relatively new and unregulated market with a lot of uncertainty. It's also important to do your own research -- only you know your risk tolerance, investment priorities, and financial situation, so only you can decide if this is the right investment for you.

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A better-known crypto like Stellar carries less risk than a newer crypto that hasn't established a track record. However, the digital payment space is complicated, and Stellar faces competition from inside and outside the crypto world. Here are two big challenges to pay attention to:

1. Central bank digital currencies (CBDCs) and stablecoins

CBDCs, or GovCoins, are digital currencies issued and backed by a central bank. The U.S. is weighing the pros and cons of a digital dollar, while China is already in the final stages of launching a digital yuan. Stablecoins are cryptos that peg their value to another commodity, such as the U.S. dollar. The rise of both CBDCs and stablecoins could undermine the benefits of the Stellar platform. Essentially, people may be able to move their digital dollars or dollar-pegged cryptos across borders without needing Stellar's platform.

However, Stellar is positioning itself as an ideal partner to CBDC projects. It argues that the platform is a place where trusted issuers can create digital representations of their assets. For example, Stellar had been working with the Ukrainian government on a CBDC project. With around 90 countries considering CBDCs, according to the Atlantic Council, if only a few turned to Stellar to issue their digital currencies, it would be a big boost for the crypto.

2. Regulation

Increased cryptocurrency regulation is a concern for many digital assets. Ripple, a project that's very similar to Stellar, is in the midst of a legal battle with the SEC over whether it is a security or a crypto. If it's deemed a security, it should have registered with the SEC and followed rules around reporting and trading. If the SEC wins this case, it could have a knock-on effect for many other cryptos, including Stellar.

Moreover, countries around the world want to put more controls on how cryptocurrencies operate, especially those like Stellar that offer bank-like services. In the long term, increased consumer protection could build confidence and help weed out bad actors in the crypto market. But in the short term, Stellar might suffer if stricter controls are introduced.

Bottom line

Stellar's strong team, relatively long track record, and solid use case mean it could perform well over the long term. However, regulation and the rise of CBDCs could create some challenging headwinds. All in all, Stellar is a good crypto to keep an eye on.

Our Research Expert

Emma owns the English-language newspaper The Bogota Post. She began her editorial career at a financial website in the U.K. over 20 years ago and has been contributing to The Ascent since 2019.

We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.

Emma Newbery owns Lumens, Ethereum, Bitcoin, Solana, and Ripple.

The Motley Fool owns and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

Should You (or Anyone) Buy Stellar (XLM)? (2024)

FAQs

Should You (or Anyone) Buy Stellar (XLM)? ›

Yes. Analysts from WalletInvestor and TradingBeasts consider Stellar XLM to be a good investment idea. It is expected that XLM coin may show a positive trend in the long term. Please always do your own research before opening a trade.

Is XLM a good buy right now? ›

In the past 24 hours, the crypto has increased by $0.0012 in its current value. For the last 7 days, XLM has been in a good upward trend, thus increasing by 1.66%. Stellar has shown very strong potential lately, and this could be a good opportunity to dig right in and invest.

Why is everyone buying XLM? ›

The potential increased value could make XLM an excellent asset to buy and hold. Of course, the coin's value is closely tied to its utility and ability to solve real-world problems. Lumens check both boxes because of Stellar's ability to process international payments quickly, efficiently and at low cost.

Will XLM reach $1? ›

Answer: Stellar Lumens has the potential to reach only around $1 in 2025 and $3 in 2027 or beyond. We could see a $5 beyond 2030 if the current crypto economic situation is sustained.

Is it safe to invest in Stellar? ›

At this time, investing in Stellar (XLM) seems to be a wise move, but it is essential to remember that things can change quickly. Investing can always provide big rewards, but it can also pose significant risks. It is imperative to your financial stability to ensure you are using the most up-to-date information.

Will XLM make me a millionaire? ›

Yes, it can – if you own millions of XLM tokens. Right now, you would need around 12 million XLM tokens to be a millionaire. Even if it goes 10x, you would still need millions of tokens to be a millionaire in terms of USD.

Can Stellar reach $1000 dollars? ›

XLM Price Prediction: Can Stellar Lumens (XLM) reach $1,000? To reach a level of $1000, XLM needs to grow at a rate of 12,500 times (which is of course too high), considering its current price of $0.08.

Is XLM high risk? ›

Trading Analysis

XLM's current risk score means it is a relatively moderate risk investment. Investors primarily concerned with risk assessment will find this score most useful in order to avoid (or potentially seek out) risky investments.

Should I buy XRP or XLM? ›

Both have good use cases and both have significant potential. However, XRP has the most dominance in terms of market capitalization and what it is trying to solve in terms of bank partnerships and overall outlook. This is not to say that XLM is not a good investment, as it also has a great team and solid potential.

Can XLM go to $100? ›

The future of Stellar Lumens remains bright and there has never been a better time to invest in this promising cryptocurrency. Although a future where the Stellar Lumens hits $10 or $100 is still improbable, few currencies can boast of having such positive reviews.

Will XLM reach $500? ›

By the end of next year, Stellar will have what it takes to hit $100. The Stellar price prediction 2025 places the price of Stellar as high as $500 as long as the developments continue on the blockchain. What do you think about the XLM price prediction in our Stellar Lumens news today?

Why is XLM so cheap? ›

Why Is Stellar Lumens XLM So Cheap? A number of factors can be attributed to Stellar Lumens XLM incredibly cheap prices. One could argue the case of demand and supply, competition, and the most recent Ripple effect. Demand and supply here affect Stellar Lumens prices in two ways.

What is the prediction for XLM in 2023? ›

As we recover from the crypto winter, we are expecting that Stellar will achieve a maximum price of $0.160544 as the market starts to recover. The minimum expected price is $0.107029 and the average price will hover around $0.133787.

What is the disadvantage of Stellar? ›

The main disadvantage lies in the low speed of transactions. Stellar's security system is far from ideal. Stellar is well suited for building simple decentralized applications. Stellar's annual inflation rate is 1%.

Is Stellar burning coins? ›

In November 2019, the Stellar Development Foundation announced it burned more than 55 billion XLM (~55%) tokens as it moves away from airdrop programs. Previously the foundation had retained 68 billion XLM earmarked for giveaways in order to grow the community.

What is best crypto to buy now? ›

An In-Depth Analysis of the Best Cryptos to Buy Now
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May 5, 2023

How much is 100 XLM worth? ›

$8.7954

Can you cash out XLM? ›

Starting today, you can: Deposit and withdraw your XLM to and from any wallet on the XLM network. Move your XLM onto Uphold and swap it for any of 190+ other cryptocurrencies. Buy XLM with your debit/credit card and withdraw it immediately to any external Solana wallet.

What is special about XLM? ›

Apart from its finite supply, XLM gains value from its use as fuel for transactions on the network, as a small amount of lumens, 100 stroops (0.00001 XLM), are deducted as fees whenever a transaction is made. This helps prevent bad actors from spamming the blockchain.

Can Stellar Lumens reach $50? ›

Despite this, it is unlikely to reach $50 in the medium and long term. The Stellar (XLM) price prediction for 2025 reveals this, while the 2030 prediction does not even contemplate reaching the price of 1 dollar. Graph with the price of Stellar (XLM) during the last year until today, November 10, 2022.

How much will XLM be worth in 2040? ›

Stellar Price Predictions
YearPrice Prediction
2024$0.48
2025$0.60
2030$0.91
2040$5.87
1 more row

How much is Stellar XLM worth? ›

Stellar price moved +0.98% over the last 24 hours. The XLM to USD conversion rate is currently $0.094 per XLM and the circulating supply of Stellar is 26,780,083,353 XLM. Therefore, the current Stellar market cap is $2,526,599,100.

Why would banks use Stellar? ›

Stellar is an open-source payment technology that shares several similarities with Ripple and its XRP cryptocurrency. Like Ripple, Stellar is a payment technology that aims to connect financial institutions and reduce the cost and time required for cross-border transfers.

Why did XLM crash? ›

Stellar (XLM) holders witnessed massive losses as cryptocurrency markets continued to deleverage. The global crypto market cap and prices of most cryptocurrencies tanked as FTX's demise led to a larger market crash.

Who owns Stellar? ›

Jed McCaleb is an American programmer, entrepreneur, and philanthropist. He is the founder and CEO of aerospace startup Vast and a co-founder and the CTO of Stellar. Prior to co-founding Stellar, McCaleb founded and served as the CTO of the company Ripple until 2013. McCaleb is also known for creating the Mt.

Will XLM price go down? ›

By September 2023, the site said XLM could be worth $0.1572. It then went on to make a stellar lumens price prediction for 2025 that saw it potentially start the year at $0.1577, before dropping to $0.15701 in September and moving down even further to $0.1565 in December.

Why XLM follows XRP? ›

The logic behind XLM's price action following XRP is quite simple and obvious. Conceived by Ripple co-founder Jed McCaleb as a decentralized counterpart to his original creation, the Stellar ecosystem and its XLM token are in the context of the crypto market what Shiba Inu (SHIB) is to Dogecoin (DOGE).

What companies use Stellar Lumens? ›

Projects and businesses building on top of Stellar.
  • AnchorUSD. Stable currency anchored 1-for-1 to the US dollar (USDX)
  • BitGo. A multsig and custodial wallet provider for Stellar Lumens.
  • BlockEQ. ...
  • Blockchain.com. ...
  • Blockdaemon. ...
  • DSTOQ. ...
  • IBM World Wire. ...
  • Kelp.

Could XLM reach $10 dollars? ›

But experts are as optimistic about Stellar Lumens' future price performance as ever. They are still confident that the coin will reach $10 - effectively growing their market cap to $500 Billion.

When to sell XLM? ›

You may want to sell XLM if you're seeking to: Avoid losses or capture gains in times of price volatility. Realize gains from previous XLM purchases. Claim gains or losses as part of your annual tax reporting.

How much is 10 000 XLM in dollars? ›

How much is 10000 Stellar Lumens in US Dollar? 10000 Stellar Lumens is 878.188562 US Dollar.

Will Shiba Inu ever reach $1 cent? ›

With the current circulating supply, Shiba Inu is unlikely to reach 1 cent any time soon. The overall market cap of Shiba Inu has been fluctuating around $6 billion for the last couple of weeks.

How much will XLM cost in 2050? ›

Stellar Lumens (XLM) Price Prediction
YearMinimum PriceAverage Price
2029$15.93$18.11
2030$23.31$25.62
2040$61.09$66.89
2050$121.13$134.18
6 more rows
Jan 19, 2023

Where will XLM be in 2030? ›

Stellar price prediction September 2030: Stellar's price for September 2030 according to our analysis should range between $0.27 to $0.31 and the average price of XLM should be around $0.29.

How many XLM coins are there? ›

How many Stellar are there? The current circulating supply of Stellar is 26.78B. This is the total amount of XLM that is available.

Is XRP and XLM the same? ›

XRP and XLM are altcoins that focus on managing cross-border transactions. XLM is available mainly to those who don't have access to traditional banking functions. XRP is for people who do business with banks.

Can XRP reach $1000? ›

If you're wanting to get an in-depth overview of the XRP and its future, you're at the right place. This article reviews this coin's prospects and what it holds in the future for the crypto market and investors. Plus, we've answered the question, "Can XRP reach $1000?" Overall, this is unlikely in the coming years.

Is Stellar better than Ethereum? ›

Whenever some new computational ability is added to Stellar, it's created and approved by a community and then implemented into Stellar on a fundamental level. So there's less freedom than with Ethereum, but it's far faster and trimmer as a result.

What problem is Stellar trying to solve? ›

Stellar champions a selfless cause by aiming to empower users in impoverished countries by targeting unbanked communities that do not have access to mainstream payment services. This is carried out in a bid to help combat poverty.

Why is Stellar undervalued? ›

Some reasons include the following: 1) Not enough people know about Stellar Lumens. 2) Not enough people are using Stellar Lumens. Would you invest in Stellar Lumens (XLM) cryptocurrency in 2020?

Does Stellar coin have a future? ›

Crypto Predictions

Based on future XLM price predictions, the cryptocurrency is expected to show a rising tendency and hence, it may be a good investment advice option in the long term. The future price of Stellar (XLM) is predicted at $1.508 over the next five years.

Is XLM bullish or bearish? ›

The Stellar (XLM) price has fallen since a long-term resistance area rejected it at the end of May. Even though there are signs of a potential bounce developing, the majority of long- and short-term readings suggest that the trend is still bearish.

How much is $1 Stellar coin? ›

Stellar Markets
#SourcePrice
1Coinbase Exchange$0.08812

What is the next big cryptocurrency 2023? ›

AiDoge could be the next cryptocurrency to explode in 2023. It's a new project that's using AI to help users create inventive new memes with minimal effort. The platform is powered by $Ai, which is available for investors to buy on presale now.

Which coin is going to pump? ›

We have narrowed down our choice of crypto coins that are expected to pump 30x before 2024 to eight. Prime suspects among them are Love Hate Inu (LHINU), DeeLance (DLANCE), Metropoly (METRO), Ecoterra (ECOTERRA), and RobotEra (TARO), as these tokens represent a new era in crypto development.

What is the smartest cryptocurrency to invest in? ›

Bitcoin has been around for the longest of any cryptocurrency. It's easy to see why it's the leader, with a price and market cap that are much higher than any other crypto investment options. Many businesses already accept bitcoin as payment, which makes this cryptocurrency a smart investment.

Can Stellar Lumens reach $20? ›

Investors and crypto industry observers are convinced that Stellar Lumens will be worth more in 5 years than they are today. And while volatilities and rapidly changing crypto market dynamics make it impossible to accurately predict future XLM prices, these analysts believe that it may be trading at between $1 and $20.

What is the all time high of XLM Stellar? ›

Stellar Price Summaries

Stellar's price today is US$0.09313, with a 24-hour trading volume of $27.98 M. XLM is +1.59% in the last 24 hours. It is currently -3.85% from its 7-day all-time high of $0.09685, and 1.48% from its 7-day all-time low of $0.09177.

How much is $10 XLM in dollars? ›

Today vs. 24 hours ago
AmountToday at 5:45 pm24H Change
10 XLM$0.92-0.06%
50 XLM$4.62-0.06%
100 XLM$9.24-0.06%
500 XLM$46.18-0.06%
4 more rows

Why is Stellar Lumens struggling? ›

Despite being notable for its impressive transaction speed attributed to its shortened approval cycle, Stella Lumens is currently struggling because it has an exceedingly small circulation volume coupled with the fact that the development pattern on the platform is slow.

Will Stellar Lumens take off? ›

Stellar Lumens Price Predictions by Crypto Experts

Coinpedia's Stellar price prediction expects an overall rise in price, but it also expects that it won't see significant momentum until we get to 2025. By then, they expect “crypto winter” to be over, and the next 5 years should be quite strong after that.

What is the 5 year projection for Stellar Lumens? ›

As per the Stellar Lumens price prediction 2025, the coin might touch a maximum price of $0.311, while on the downside, it might fall up to $0.216. As per our XLM prediction, the average price might be trading around $0.264 by the end of 2025.

Should I buy XLM or XRP? ›

Both have good use cases and both have significant potential. However, XRP has the most dominance in terms of market capitalization and what it is trying to solve in terms of bank partnerships and overall outlook. This is not to say that XLM is not a good investment, as it also has a great team and solid potential.

What are the disadvantages of Stellar? ›

The main disadvantage lies in the low speed of transactions. Stellar's security system is far from ideal. Stellar is well suited for building simple decentralized applications. Stellar's annual inflation rate is 1%.

Why is Stellar better than Bitcoin? ›

The Stellar blockchain uses a consensus algorithm that is faster, cheaper, and more energy-efficient than that of Bitcoin.

How many people have XLM? ›

Stellar's growth in 2021

Total accounts increased by 35.57% (4.8 million to 6.5 million). The number of payments increased by 378.19% (15.2 million to 72.6 million). Average daily volume on Stellar's decentralized exchange increased by 962.94% (11.9 million XLM to 126.2 million).

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