BCGAME - Free 5BTC Daily Bonus!Stellar's Native Cryptocurrency (XLM) - is trading at its highest level since June 5, driven by bullish sentiment across the market.
Cryptocurrency prices hit rock bottom on July 20, when the XLM hit its lowest level since January. Since then, it has gained more than 84%.
What is Stellar and what is the prospect for XLM as the cryptocurrency markets continue to recover? Is there more potential for growth or is it time to sell short?
In this article, we look at recent developments in the Stellar network and the latest XLM price forecasts.
Stellar XLM Connect Financial Institutions
Launched in July 2014, Stellar aims to bridge the gap between cryptocurrencies and traditional finance. O blockchain allows fiat currencies and other assets to work in parallel with each other and cryptocurrencies, facilitating the transfer of fiat currency to crypto. It was based on the Ripple Labs protocol – the Stellar blockchain was a hard fork, or split, of the Ripple blockchain, and the code was rewritten.
The XLM currency is the network's native currency. Users must have a minimum balance of one XLM and pay a minimum transaction fee of 0,00001 XLM. According to the Stellar website: "They're small enough to keep Stellar widely accessible, but big enough to discourage large-scale misbehavior." The low transaction fee is intended to allow users to transfer money quickly, without incurring extra processing costs.
Stellar has partnered with some of the largest finance and technology companies, including Deloitte, IBM (IBM) and Stripe, as well as a dozen financial institutions and payment processors in Asia and Europe. Financial institutions around the world can settle payments and issue assets on the decentralized and scalable network.
In its last partnership, on July 13, the Asian cryptocurrency exchange platform Liquid Group added multi-chain support for Stellar stablecoin's USDC. The company said: "By supporting multiple chains for selected cryptocurrencies, Liquid is looking to increase interoperability, address issues arising from recent spikes in blockchain rates and improve service levels for its customers."
Stellar approached US global payment remittance giant Moneygram International (MGI) about a possible acquisition in partnership with private equity firm Advent International, Bloomberg reported on July 21.
Project developers are also working on a major update to the Stellar XLM demo portfolio, the company said on July 14th. Wallet is an open source application that allows developers to test blockchain protocols. It replicates the user experience of creating or importing an account, adding assets to the account and performing transactions. A log shows the interactions between the wallet and the network, as well as tips to show users what they can do on the Stellar network.
The team behind the developments said:
We are looking forward to adding even more functionality to the demo portfolio. In addition to Hosted Deposit and Withdrawal (SEP-24) and Cross-Border Payments API (SEP-31), we've recently added the Deposit and Withdraw API (SEP-6) and Regulated Assets (SEP-8).
Stellar Community Fund (SCF), providing developers support for projects that help build the ecosystem. Over several rounds each year, the fund awards 12 million XLM coins to various projects based on community votes. The current round is accepting entries until August 22nd, with voting taking place from September 13th to 26th.
On June 25, a technical proposal that would see Stellar enable automated market makers (AMMs) was deemed ready for implementation. But development work continues and blockchain validators will not vote on whether to update the network to accept the change "for several months".
Improving liquidity through proposals like AMMs and integration with additional over-the-counter (OTC) liquidity solutions is part of Stellar XLM's 2021 roadmap for future growth. The roadmap also aims to “invest in technical and procedural changes that make the network even more secure and resilient” and “promote use cases that have clear value to end users and can demonstrate a path to a viable business model”.
Stellar XLM Price Forecasts: Is There Room for Additional Earnings?
The XLM price traded above $0,40 on August 15th and 16th for the first time since June 5th, as the market rebounded after a sharp drop in May. The price hit $0,7965 on May 16 at the peak of the cryptocurrency rally, its highest level since hitting a record high of $0,9381 on January 4, 2018.
But can the price continue to rise?
CoinCodex's short-term technical XLM price analysis shows that the overall sentiment for XLM is neutral, with 25 indicators giving bullish signals and five showing bearish signals. The website said on Aug. 20: "According to our current Stellar price forecast, Stellar's value will drop -17,77% and reach $0,299838 on Aug. 25, 2021."
With XLM trading around $0,356, there was resistance at $0,379 up to $0,414 and support at $0,344 up to $0,309.
The stellar encryption forecast from the algorithm-based website Wallet Investor predicts that the price of XLM will reach $0,416 by the end of August, rising to $0,537 by the end of 2021, $0,787 by the end of 2022 and $1,534 in end of 2025.
DigitalCoin's XLM price forecast puts the coin value at an average of $0,570 in 2021, increasing to an average of $0,658 in 2022, $1,14 in 2025 and $1,67 in 2028.
Meanwhile, the forecast is down in the near term, projecting the price to drop to $0,360 by the end of 2021. But he expects the price to rise to almost $0,40 in January 2022, ending the year at $0,590 – less than the predictions of Wallet Investor and Digital Coin. He expects earnings to accelerate by mid-decade, ending 2025 at $1,748.
Stellar's projection of the currency price forecast is more cautious. He puts the price at $0,40 at the end of 2021, $1,08 in 2025, and $1,42 in 2030.
It's important to keep in mind that cryptocurrency markets are extremely volatile, making it difficult to accurately predict what a currency's price will be in a few hours and even more difficult to provide long-term estimates. As a result, analysts and online forecasting sites can make their predictions wrong. We recommend that you always do your own research and consider the latest market trends, news, technical and fundamental analysis and expert opinion before making any investment decisions. And never invest more than you can lose.
Where and how to buy Stellar in 2021
If you want to invest in the currency now, you can buy it through cryptocurrencies such as Coinbase, Kraken and Binance. If you intend to keep the coins, you can transfer them to a secure software or hardware wallet.
Frequently asked questions
Is Stellar a good investment?
Whether XLM is a good investment for you depends on your circumstances and personal investment goals. Cryptocurrencies are highly volatile investments, making them riskier than other asset classes. You must assess the level of risk you are prepared to accept before investing. Never invest money you cannot afford to lose.
Will the price of XLM increase?
Meteorologists expect the price of XLM to rise in the long run. The short-term direction of the market will depend, to some extent, on sentiment towards the broader cryptocurrency industry. As you read these estimates, keep in mind that analysts' predictions can be wrong. The analysts you choose to believe depend on your own research and insight into market conditions.
Can Stellar top $5?
Meteorologists don't expect the price of XLM to reach $5 in the next few years. Pricing forecasts indicate that encryption will trade below $2, with DigitalCoin predicting encryption will increase by $1,83 through 2028.
