Stellar Lumens is a cryptocurrency working on Stellar, a blockchain-based distributed ledger aiming to connect financial institutions and people all across the globe. The main focus of stellar is to create a cheap, easy-to-use, and easily accessible payment system, allowing people to contribute to the global economy.
The cryptocurrency world is growing at a breakneck pace. Just a few years ago, people were still getting used to the idea of an entirely virtual currency running on a blockchain network. Today, however, there are thousands of altcoins in existence. Although new altcoins are also joining the rank, most of these haven’t yet truly made a mark.
Stellar Lumens is relatively a new cryptocurrency that has started attracting a massive number of digital currency users. Developers created the network with a specific goal in mind, which provided an idea to develop a built-in coin.
By the end of this detailed post, you will understand what stellar lumens is, how it works, its security features, and who is behind it in the cryptocurrency world. Stellar is among the top 10 cryptocurrencies globally and has been operating for around three years.
What is Stellar?
Stellar is a decentralized digital network that runs on the internet. It is also one of the main competitors of XPR’s. However, since XPR focuses mainly on the banks, Stellar Lumen is created from the ground up with the masses in mind.
The idea behind the development of Stellar is to create a digital platform that people could use for almost any type of currency, local or digital. Industry pros developed the platform intending to make it easily accessible, efficient, and easy to use.
It allows users to create, trade, or transfer various types of cryptocurrencies. The platform’s mission is to bring global financial systems under one single network. Moreover, unlike any other cryptocurrency platform or exchange, Stellar is spread across various servers. It means activities carried out by users aren’t monitored by a singular source.
Stellar offers quick, inexpensive, and easily accessible everyday purchases, one of the most significant advantages. Currently, it is the 10th largest cryptocurrency in the world, boasting a value of $9.16 billion.
Since Stellar is an open-source network, it is simple to understand what it can do. At the surface level, the platform is a decentralized blockchain created to assist people in moving money both locally and internationally efficiently and conveniently.
However, two primary purposes that you can use the Stellar network for include:
- Stellar offers an excellent opportunity for people who want to move money with less friction. The accounts for local payments like paying a client after a service or product is delivered. Stellar is also ideal for transferring money to people living outside the country.
- Apart from helping users to move money, you can also use the Stellar network to store money. For example, you can purchase XLM tokens to securely keep your funds in your crypto wallets as an investment.
· What are Lumens?
Since Stellar is an open-source and easy-to-use network, it opened up many risk factors, including abuse and spam. That’s why the developers create a token known as Lumen to make the network safe.
Lumens provide much better security to its users by ensuring that every account must hold some Lumens to keep it active and usable. With even a small amount of these tokens, one can easily keep their account open and functional.
Moreover, since Lumens are a built-in token, they also help reduce the cost when making a transaction o the network. For example, you can complete a transaction by paying as much as 0.00001 Lumen.
Furthermore, when making a transaction through Stellar, an in-built protocol converts the money to Lumens and then to the appropriate currency. For instance, if you are making a transaction in US dollars to someone living in England, Stellar will convert your transaction to Lumens, and the recipient will receive the payment in pounds.
This entire transaction process takes only a few seconds, making it an efficient and easy way to receive and transfer funds from anywhere in the world.
· What is XLM?
Regardless of what cryptocurrency you use, they all have a ticket identifier, making it easier for individuals and institutions to analyze the market, track its usage, and perform various actions. The ticket generally consists of only three numbers or symbols unique to the specific altcoin or token.
XLM is also a ticket identifier, and Stellar used it to develop Lumens. Hence, when a user transacts or owns with XLM, they’re essentially selling, buying, transferring, or storing Lumens on the network.
Apart from some volatility that we have seen in XLM, it is performing well, and the outcome is exceptional. Looking at the stats from the past five years, XLM is one of the best altcoins tokens developed in recent years.
The History of Stellar Lumens
Created by Jed McCaleb, the co-founder of Ripple, Stellar began its journey in 2014. The network was brought into existence with the primary goal in mind – making cross-border transactions more efficient.
Before Stellar, cross-border payments were way too expensive and took a long time to complete. In addition, financial experts discussed the importance of efficiency and easy access to financial institutions, but unfortunately, a massive number could not easily access banks and other financial institutions.
Stellar then partnered with banks, companies, and financial institutions worldwide to serve people better. Although the growth has been phenomenal, there’s still a long way to go. However, the team behind Stellar is also impressive, which is why people are optimistic about its future.
Moreover, there’s also the Stellar Development Foundation. The main emphasis of this foundation is to spread awareness about Stellar. The foundation is also responsible for making sure that the network is user-friendly, simple, and affordable for people all across the globe.
Advantages of Stellar Lumens
Since stellar is partnered with several banks, companies, and financial institutions all around the world, some key advantages are listed below:
- It offers an incredibly high processing speed. Unlike Bitcoin or Ethereum, you don’t have to wait for hours or even minutes. It takes only 3 to 5 seconds to complete and confirm the transaction.
- Decentralization is a vital factor of cryptocurrencies. Stellar, through its development foundation, promotes its usage as well as makes upgrades to the platform. Moreover, validation and authentication of transactions are scrutinized by selected nodes (community). Transactions proof is then stored on a blockchain for transparency.
- While making a transaction on the Stellar, you will pay nearly zero fees – only 0.0001 Lumen.
- You can easily trade newly issued tokens on the global SDEX exchange.
- It features a robust infrastructure of exchange supporting XLM and wallets.
- You won’t pay any fee to issue a new token.
- Because developers created Stellar for cross-border transactions, it is effortless to handle fiat currencies.
- An impressive factor of Stellar is its scalability
- Stellar is already far more efficient than Bitcoin and Ethereum.
- The security features of Stellar are also impressive. For example, Stellar Consent – 8 sus Protocol (SCP) provides maximum security against hacker attacks.
- It also offers the possibility to trade various types of currencies even if they aren’t directly available.
- The accessibility of Stellar Lumens is one of the most remarkable features of all cryptocurrencies. You can access XLM in any part of the world, and all you need is an internet connection.
Disadvantages of Stellar Lumens
- Unlike Bitcoin or other cryptocurrencies, Stellar Lumens doesn’t offer mining rewards. In addition, the network doesn’t use algorithms, such as proof of work or proof of stake.
- Stellar Lumens payment protocol faces fierce competition in the industry, mainly from Ethereum and Ripple. So it is because Stellar Lumens offer similar services as Ethereum and Ripple.
- Stellar Lumens require users to have at least a 20 XLM balance in their account or wallet to keep it usable and active. It bothers some users who aren’t willing to invest much in XLM.
Stellar Lumens (XLM) Forecast
Despite the cryptocurrency crash in May, Stellar Lumen is enjoying a breakout year in 2021. In 2020, it ended the year at $0.126201, and the current Stellar Lumens forecast is $0.42. However, before the crypto crash that led to billions in losses for investors, it’s been as high as 0.875563.
The crash even jolts the giants like Ethereum and Bitcoin. BTC, for instance, fell below 40,000 for the first time since February. So, it is crucial to carefully analyze the Stellar Lumens (XLM) forecast over the coming months.
Although the crypto market volatility is far higher than traditional stocks, it doesn’t mean investing in cryptocurrency is a bad idea. However, you need to research and weigh rewards and risks.
· Top Stellar Lumens (XLM) Forecasts
1. Coinpedia Stellar Lumens Forecast (2021-2022)
Coinpedia predicts that Stellar Lumen (XLM) forecast could hit anywhere between $0.68 to $1.38 at the end of 2021. In another article, Cinopedia further predicts that Stellar Lumens forecast could hit $0.77 on June 22.
The second Stellar Lumens forecast prediction comes from an Italian website. According to the website, Stellar Lumen (XLM) could reach up to $1.3 at the end of December. Moreover, they also expect a massive rise with a robust capitalization and a solid value per coin increase.
3. Beincrypto.com Stellar Lumen Forecast
Beincrypto uses a different technique to predict Stellar Lumens (XLM) forecast. One of their methods is to analyze weekly MACD, crossing above 0 twice in its history. Both times, a sharp drop followed by a significant rise in 2016. Therefore, Stellar Lumens may be up for a substantial increase in 2021, with a price of approximately $5.33.
4. BitBoy Stellar Lumens Forecast (2021)
BitBoy is the largest cryptocurrency YouTube channel. The channel provides some great fundamentals regarding the Stellar Lumens forecast in 2021. Some news suggests that Stellar Lumens (XLM) will be an excellent settlement blockchain for CBDC and USDC. Some videos on the channel giving a Stellar Lumens forecast that it might hit $6.25.
5. Coinbureau Stellar Lumens Forecast
Another prediction regarding Stellar Lumens forecast from Coinbureau explains underlying facts that could skyrocket Stellar Lumens (XLM). However, Coinbureau also explains why they are bullish for the short and mid-term. Moreover, they also raised a few queries they have for long-term investors.
· Can Stellar Lumens Reach $100?
So, can Stellar Lumens reach $100? Well, that’s unrealistic t the moment as it would mean a price increase of up to 1500x. However, Stellar can easily hit $1 may be in the current year or next. Hitting $10 might take years, but it is still possible. For achieving the milestone of $100, it would take decades and some homogenous breakthrough in Stellar Lumens development. However, at the moment, this achievement seems quite impossible.
Is Stellar Lumens a Good Investment?
If you are new to the cryptocurrency world, particularly Stellar investing, you may be wondering whether Stellar Lumens is a good investment for you. Well, Stellar could be an excellent investment, and investing in it could bring you massive returns in the future.
Stellar Lumens (XLM) increased incredibly in 2021 and has returned 424.4% Y-T-D. Stellar Lumens doesn’t look like they slow down, focusing on the trade volume and defining digital asset activity. The trade volume recorded as of May 17 is a staggering $3,495,312,612.
Because of Stellar Lumens’ open-source nature, several cryptocurrency experts foresee extensive growth in the future. Therefore, some analysts also believe that investing in Stellar Lumens is wise for long-term traders and investors.
One of the reasons to invest in Stellar Lumens is the network’s significant upgrades, which significantly improves the flexibility of the Stellar-based applications and Stellar Core. A recent upgrade became effective in March 2020, while some other considerable upgrades are coming in the next few months.
These updates will likely open up the network to more creative solutions. If XML integration and non-fungible token (NFT) are successful, we may see a considerable increase in Stellar Lumens’ price.
Reasons to Invest in Stellar Lumens (XLM)
You don’t have to be a savvy crypto investor with huge money to invest in Stellar Lumens. All you need is some research. Stellar is pretty accessible, even if you are a beginner. Some key reasons why you should invest in Stellar Lumens include:
· Practicality as a Currency
The Stellar Lumens blockchain can quickly and efficiently handle up to 5000 transactions per second, making it a daunting competitor to centralized transaction systems. However, it is a significant factor for many reasons.
Firstly, the core of crypto is to make transactions efficient and faster while competing with centralized payment methods like MasterCard or Visa. For this, Stellar Lumens serve as a viable alternative, especially when you have to handle global, unbanked transactions.
Secondly, because of the vast range of cryptocurrencies, there’s fierce competition within the crypto market. Many cryptocurrencies are speculative—however, cryptocurrencies with a value beyond speculation gain long-term.
In this regard, Ethereum and Bitcoin have successfully established themselves as a store of value. In contrast, Stellar Lumens is among the cryptocurrencies that are considered a viable option for cross-border payments. Moreover, from companies like Tesla to restaurants in Hong Kong, Stellar adoption is rising incredibly.
· KYC Functionalities
One of the most significant disadvantages of crypto is that scammers and criminals can use them for crimes. ECB president, in a statement, stated that money launderers and other illegal sources are using cryptos.
However, Stellar Lumens (XML) features an inbuilt KYC function, making it hard to use Stellar for money laundering or other financial crimes. On the other hand, people looking to build assets on Stellar can easily do a background check on users. Moreover, it also allows users to track their payments.
Unlike government-issued cryptos that enable central banks to scrutinize payments and probably censor them, Stellar Lumens doesn’t have the central control point.
· Smart Contract Capability
Stellar Lumens allows encouraging asset building. It means investors can create tokens and build decentralized exchanges on the network. Since XLM is Stellar’s native token, there will always be a value. Decentralize exchange, in particular, could be a critical factor that will drive the Stellar value in the long run.
· Listed on Multiple Exchanges
The number of exchanges crypto is listed in is an essential factor of its growth. That’s because it impacts both the credibility and liquidity of a token or coin. That’s why when an exchange lists a new cryptocurrency, the price increase.
Moreover, if crypto is available on several exchanges, it will easily access investors and financial institutions.
· A Safer Version of XRP
XLM and XPR are two cryptos similar in many ways. For beginners, both cryptos targeted precious cross-border transactions. For instance, the Ripple network has been aggressive in forcing the XPR adoption for transaction settlements in Asia and Europe.
While Stellar Development has various valuable partnerships with giants like IBM, although both XPR and XLM are worthwhile investments, XLM has fewer risk factors, allowing it to gain more long-term adoption.
· User-Friendly Experience
Cryptocurrencies are complex, and only a small number of people have an understanding of them. However, a cryptocurrency that is user-friendly, simple, and efficient gains more attraction. Stellar Lumens is also among the most user-friendly crypto networks.
A user can easily store it on multiple wallets, Trezor, and Ledger. It means if you buy Stellar Lumens (XLM), you don’t have to leave it on exchanges. This factor is pretty attractive to investors who want to dive into crypto for the long term.
Moreover, Stellar also recommends several wallets that you can use to store XML. Also, the transaction fee of Stellar wallets is only 0.00001 XLM.
· A Clear Roadmap
There are several cryptocurrencies on the market, and most of them don’t provide a clear roadmap to their users. Stellar Lumens is among those cryptos that offer a clear roadmap on development and growth. The network continuously looks for ways to strengthen itself and provide a suitable environment for long-term growth.
Recently, the significant progress that Stellar introduced is to enable anchors. Moreover, Stellar’s developer team is also doing an outstanding job, making the network more efficient.
Performance and Future Outlook of Stellar Lumens
So, what is the future of Stellar Lumens (XML)? Well, industry experts believe it will continue to get better and more popular. The services they provide are easy to understand, and the problem they set out to solve is a big one for millions all across the globe. As they continue building out and upgrading their system and reputation and forming new partnerships, many believe Stellar Lumens (XML) could be the future of borderless payments.
Like various other cryptocurrencies, Stellar Lumens can also serve as an investment apart from practical use cases. Although experts have mixed opinions, many believe that crypto should increase in value. The reason is the understanding and increased usage across the world. Like other assets, the performance of Stellar Lumens is also tied to BTC and the crypto industry as a whole.
In conclusion, we believe that this post will help you learn more about Stellar Lumens. It is an exciting network and cryptocurrency and is sure to help users transfer payments all over the globe.