By Brandy Woodfolk September 28, 2022
- About Stellar
- About Stellar Lumens
- Stellar vs. Ripple
- Factors To Consider
- Where To Buy
Stellar’s XLM is just one of the many crypto assets currently available. Its popularity may make you wonder if XLM is a good investment move for you. To make that decision, you should consider Stellar’s background and its performance to date.
What Is Stellar?
Stellar is a decentralized network on which users can create, send and trade several types of cryptocurrency. Developers can use Stellar to deploy global payment apps, asset exchanges and micropayment services for large and small businesses alike. It was created in 2014 and launched in 2015 with the mission of bringing the world’s financial systems together under one network.
Like other decentralized platforms and exchanges that use blockchain technology, Stellar is spread across multiple servers. This means that the activity carried out on Stellar is not monitored by a singular source.
About Stellar
Stellar began in 2014 when Jed McCaleb left Ripple, a platform he co-founded, to create a new financial system. McCaleb and former lawyer Joyce Kim launched Stellar as a platform for the everyday user. Soon after, Stripe’s CEO collaborated with McCaleb and Kim to create the nonprofit Stellar Development Foundation.
Stellar has experienced many growth spurts, such as when Mercado Bitcoin announced its use of the platform. In less than a year, Stellar housed almost 3 million user accounts. Since that time, Stellar has signed on over 55,000 accounts of its own and built a network of partners that includes Coinbase, Franklin Templeton and MoneyGram.
What Are Stellar Lumens?
While the Stellar platform is open to all representations of money and cryptocurrency assets, it does provide its own digital currency called lumens, or XLM, which is the foundation of the network.
Lumens
Lumens are most often used to pay transaction fees on Stellar. However, lumens also act as the intermediate currency that allows Stellar users to execute trades quickly.
A built-in protocol automatically converts money sent through Stellar to lumens and then to the desired coin. For example, if you send a payment in U.S. dollars to a recipient in Mexico, Stellar converts the payment to lumens, and the recipient can receive the payment in pesos. It takes only seconds to complete the entire conversion, making it easy to send and receive money from anywhere in the world.
Moving Away From Stellars
At the time of its launch, the platform’s native currency was called “stellars.” Stellar later changed the name to lumens, but the original name stuck with many people, so you might still hear the term stellars and see lumens listed that way on cryptocurrency exchanges. You might also hear Stellar and lumens used interchangeably, but Stellar is the platform itself. Lumens are the crypto asset used by the platform.
What Are the Differences Between Stellar and Ripple?
People who have used both Stellar and Ripple have noted the similarities between the two platforms. They use almost identical blockchain code, neither allows mining, both use a distributed ledger and both provide nearly free and instantaneous transactions.
These similarities are due mainly to the fact that McCaleb, one of the founders of both platforms, knew what worked well with Ripple and brought that vision and knowledge with him to create Stellar.
Advantages Stellar Has Over Ripple
The platforms differ significantly in their goals. Ripple was created so that banks could make transfers around the world in a matter of seconds for a very small price. It improved the efficiency of banks and financial systems.
Stellar, on the other hand, was built with the average user in mind and for those in developing countries. The platform provides access to the global economy through simple, quick and low-cost transactions. While the average person can use Ripple and banks can use Stellar, they were each designed for specific users to provide a more efficient experience to their target markets.
In terms of the organizations behind the platforms, Stellar is supported by the nonprofit Stellar Development Foundation, while Ripple is a for-profit company. Some believe Ripple’s status as a profit-making company poses a conflict of interest where its stewardship and decision making over XRP Ledger, the software behind the platform, are concerned, according to the cryptocurrency exchange Kraken.
Good To Know
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. Before making any investment moves, whether you are investing in stellar or anything else, you should always check the current market and trends.
Is XLM a Good Investment?
When determining whether Stellar’s XLM is a good investment, there are two factors to consider: how lumens have performed up to this point and their potential.
Performance History
Generally speaking, XLM has shown promise to date. Since the inception of the asset, its value has risen from a small fraction of a cent to $0.1087 as of Sept. 28, though not without some wild swings before and after periods of relative stability. For example, XLM climbed from less than $0.09 in November 2020 to $0.73 in May 2021 before trending downward to its current price.
Although XLM’s 59% drop since the beginning of the year is alarming, the decline is even with bitcoin’s and slightly less dramatic than ethereum’s 65% drop. Viewed in the context of the larger cryptocurrency market, lumens’ performance suggests the coin could be a viable long-term investment, but it’s one that carries significant risk.
Potential Value
Stellar has destroyed half of its lumens and does not plan to create more. This may cast doubt on its investment potential, but it is important to recognize that the coin will be scarce in the future. Rarity increases the value of any item, as could be the case with the lumens that are still in existence. 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. Stellar also has the backing of some major players, including MoneyGram.
Where To Buy Stellar Lumens
You can purchase lumens directly from the Stellar platform, but this is certainly not the only way to do so. Lumens are available on most cryptocurrency exchanges, including:
- Kraken
- Binance and Binance.US
- Coinbase
- Bitfinex
- Bittrex
- Huobi
- Upbit
- KuCoin
- NovaDAX
- Bybit
- Gate.io
Even if you do not see your preferred exchange listed here, there is a good chance it offers lumens. Check your platform’s crypto asset availability.
GOBankingRates’ Crypto Guides
- What Is Cardano? (ADA)
- What Is Bitcoin? (BTC)
- What Is Bitcoin Cash? (BCH)
- What Is Chainlink? (LINK)
- What Is Dogecoin? (DOGE)
- What Is Litecoin? (LTC)
- What Is Polkadot? (DOT)
- What Is Ripple? (XRP)
- What Is Tether? (USDT)
Daria Uhlig contributed to the reporting for this article.
Data is accurate as of Sept. 28, 2022, and is subject to change.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
FAQs
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.
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.
What is the 5 year prediction for XLM Stellar? ›
Stellar Price Prediction 2025
Based on the technical analysis by cryptocurrency experts regarding the prices of Stellar, in 2025, XLM is expected to have the following minimum and maximum prices: about $0.209979 and $0.269973, respectively. The average expected trading cost is $0.219978.
How much will Stellar be worth in 2030? ›
Stellar (XLM) Price Predictions 2023 - 2031
| Year | Minimum Price | Average Price |
|---|
| 2028 | $0.54101 | $0.567188 |
| 2029 | $0.62827 | $0.654448 |
| 2030 | $0.715529 | $0.741707 |
| 2031 | $0.802789 | $0.828967 |
5 more rows2 days ago
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.
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.
Should I buy Stellar or Ripple? ›
However, the choice between them depends on your preferences. Stellar is a more decentralised platform which is also highly accessible to ordinary users. On the other hand, Ripple is highly secure, but can only be used by a controlled group of financial institutions.
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?
How much is $100 worth of XLM? ›
100 US Dollar is 1132.944 Stellar Lumens.
How much will XLM cost in 2040? ›
XLM Coin Price Prediction 2040
By 2040, we may expect an average price of $66.89 depending upon the market trend. Our maximum price prediction for Stellar Lumens Coin is $75.78 in 2040.
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.
Why is XLM price so low? ›
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.
Which cryptocurrency has the most potential? ›
Which is the best potential cryptocurrency to invest in? The best potential cryptocurrency to invest in is AiDoge. The platform's native token, $AI, will let users create memes, vote on them, and earn rewards if their memes become popular.
What will be Shiba Inu in 2030? ›
Shiba Inu Coin Price Prediction
| Year | Minimum Price | Average Price |
|---|
| 2029 | $0.000423 | $0.000505 |
| 2030 | $0.000593 | $0.000646 |
| 2040 | $0.054 | $0.076 |
| 2050 | $0.62 | $0.89 |
6 more rowsTo reach $100, XRP will have to rise 236x. That translates to a market cap of $5.2 trillion (equal to 12x the current market cap of Tesla). This looks incredibly unrealistic.
What is best crypto to buy now? ›
An In-Depth Analysis of the Best Cryptos to Buy Now
- Bitcoin – The First and Largest Cryptocurrency With Unparalleled Long-Term Potential. ...
- Ethereum – Top Crypto to Buy for Long-Term Growth Loved by Web3 Developers. ...
- Cardano – Unique Blockchain With Growing Developer Activity. ...
- IOTA – Payment Protocol for IoT Devices.
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.
Can you make money on Stellar? ›
There are multiple straightforward and highly rewarding ways of making money with Stellar Lumens - including investing, trading, and staking XLM tokens.
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.
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.
100000 Stellar Lumens is 8872.169 US Dollar.
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.
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 Stellar better than Bitcoin? ›
The Stellar blockchain uses a consensus algorithm that is faster, cheaper, and more energy-efficient than that of Bitcoin.
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.
What is XLM worth now? ›
Stellar Lumens Price Chart (XLM/USD)
| 24 Hour High | 24 Hour Low | Market Capitalization |
|---|
| 0.09 USD | 0.09 USD | 2,371,445,274.03 USD |
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.
How much is $50 XLM in dollars? ›
The conversion value for 50 XLM to 4.693 USD.
How much is 20 000 XLM in dollars? ›
20000 Stellar Lumens is 1870.792 US Dollar.
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.
12.988 billion XLM were burned from the Partnership program, reducing the supply left to be distributed to 8 billion XLM.
What is the predicted price of stellar lumens in 2025? ›
Lumens' 2025 Predictions
It writes that the average price of XLM can be around $2.96 by 2025 if current growth continues. Its maximum price could be up to $3.53, while its minimum price can go down up to $1.32. As per DigitalCoinPrice, XLM's price could reach as high as $0.33 and as low as $0.27 in 2025.
How old is XLM coin? ›
Stellar (XLM) is a peer-to-peer (P2P) decentralized network created in 2014 by The Stellar Development Foundation or Stellar.org.
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.
Can you cash out Stellar Lumens? ›
How do I sell Stellar Lumens? Sign up in less than 5 minutes. Upload your ID so we can verify your identity. Once sold, you can transfer the cash straight to your bank.
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.
Who owns Stellar Lumens? ›
Stellar lumens (XLM) are the tokens released as native assets by the Stellar Development Foundation, a nonprofit launched by Ripple co-founder Jed McCaleb in 2014.
Can Ripple reach $10,000 dollars? ›
Will XRP reach $10,000? In theory, it could reach a value of $10,000 in 216 years (keeping in mind the past track record of 10.13x growth in one month).
Which crypto will boom in 2023? ›
5 top cryptos to buy in 2023
- DeeLance - Decentralized freelancer marketplace with upcoming Metaverse.
- Love Hate Inu - Exciting new meme coin with vote-to-earn rewards.
- Ecoterra - Sustainable crypto project that pays users to recycle.
- RobotEra - Virtual sandbox to build and earn.
We have narrowed down our choice of crypto coins that are expected to pump 30x before 2024 to eight. Prime suspects among them are Love Hate Inu (LHINU), DeeLance (DLANCE), Metropoly (METRO), Ecoterra (ECOTERRA), and RobotEra (TARO), as these tokens represent a new era in crypto development.
Based on performance analysis, yPredict, Polkadot, Solana, and Cardano are among the next big cryptocurrencies. It's important to understand the underlying technology, team, and potential use cases before investing in any cryptocurrency.
How much is 1 million Shiba Inu worth? ›
1000000 SHIBA INU is 8.765025 US Dollar.
Will Shiba Inu coin reach$ 1 in 2040? ›
As per our Shiba inu coin price prediction/Forecast, their prices can hit a new target level in 2040 due to massive token burning. Before 2040 the Shiba inu team might burn half of its token supply. By 2040, we may expect an average price of $1.20 if current growth continues.
How many Shiba Inu coins are left? ›
The total supply of Shiba Inu tokens is 1 quadrillion (1,000,000,000,000,000) SHIB. The large total supply of Shiba Inu is intended to emphasise the humorous and meme-based nature of the cryptocurrency.
Could XRP be the next Bitcoin? ›
Analysts are still speculating on whether or not XRP could become the next bitcoin or ethereum. Experts at The Motley Fool Canada pointed out earlier this year that it's highly unlikely XRP could gain enough traction to displace either of the top two cryptocurrencies.
How much could XRP realistically be worth? ›
Based on the technical analysis by cryptocurrency experts regarding the prices of XRP, in 2025, XRP is expected to have the following minimum and maximum prices: about $1.19 and $1.41, respectively. The average expected trading cost is $1.23.
What will XRP be worth if it wins? ›
Notably, if XRP prevails in the case, the panel of financial experts in Finder's January 2023 report anticipates that the price of XRP would trade at $3.81 by the end of 2025. Nevertheless, if the SEC wins in court, it will instead reach $0.98.
Is Cardano or XLM a better investment? ›
While Cardano is more suitable for crypto users who want easy-to-stake crypto and who want to profit from the decentralized economy, Stellar is suitable for those who use cryptos mainly to make transactions.
Can Stellar Lumens reach $100 dollars? ›
Summary. 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.
Is Stellar worth holding? ›
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.
However, the choice between them depends on your preferences. Stellar is a more decentralised platform which is also highly accessible to ordinary users. On the other hand, Ripple is highly secure, but can only be used by a controlled group of financial institutions.
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.
Why is XLM valuable? ›
Potential Value
Rarity increases the value of any item, as could be the case with the lumens that are still in existence. 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.
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.
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.
Is Stellar risky? ›
Stellar receives an average risk rating from InvestorsObserver analysis.
Can Stellar replace Ethereum? ›
Ethereum can do everything Stellar can do and far more — it just can't do it as quickly or inexpensively. Stellar, however, was specifically built to not be able to achieve everything that Ethereum can.
Which crypto is best to invest now? ›
- Bitcoin (BTC) Market cap: Over $550 billion. ...
- Ethereum (ETH) Market cap: Over $ 220 billion. ...
- Tether (USDT) Market cap: Over $80 billion. ...
- Binance Coin (BNB) Market cap: Over $50 billion. ...
- XRP (XRP) Market cap: Over $23 billion. ...
- Cardano (ADA) Market cap: Over $13.4 billion. ...
- Solana (SOL) Market cap: Over $8 billion. ...
- Polkadot (DOT)
IBM Corp. (IBM) has partnered with Stellar, a blockchain that shares technology with Ripple, and Stronghold, a startup, to launch USD Anchor. Coins of USD Anchor are backed by an equivalent amount of U.S. dollars on deposit at FDIC-insured banks by Nevada-based Prime Trust.
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.
