2019-12-15 22:32 |
Stellar Intro
Stellar Lumens is a cryptocurrency platform that focuses on remittance and cross-border payments.
Stellar is aiming to be an open financial system that gives people of all income levels access to low-cost financial services. These services include, but are not limited to:
RemittancesMicropaymentsMobile BranchesMobile MoneyIn addition to these services, one very powerful feature of the network is their Distributed Exchange. Users can liquidate/exchange their funds for other cryptocurrencies or fiat currencies using the platform’s exchange anchors.
During January, XLM recorded an all time high price of $0.93, shooting up from $0.39 just a few days earlier.
On the 8th of March 2018, Stellar announced a new partnership between themselves and Keybase.
The next big month for Stellar and XLM came in the shape of July. After passing through April, May and June with very little to shout about, the Stellar project hit headlines once again with an announcement from the Stellar Development Foundation that highlighted Stellar XLM had become the world’s first blockchain product to be recognised by Sharia law. Through the year, Stellar have continued to make progression with XLM, through further partnership announcements that are all helping XLM to become a powerful rival to XRP.
Read our updated guide on best XLM wallets.
Our XLM Price Prediction for 2019It is quite clear that cryptocurrency price predictions should be taken with a grain of salt, but there are factors to look out for that will almost certainly have a bearing on the future price of the wider cryptocurrency market. This includes:
The level and nature of regulations imposed in dominating cryptocurrency marketsThe level of cryptocurrency adoption in the coming year and beyondThe level of growth in the cryptocurrency futures marketThe utility of tokens and the ability of the underlying technology to solve real-world problemsXLM, as the rest of the market, is tied at the hip of bitcoin’s price action. If bitcoin embarks on another bull run, XLM can hope for one as well. Since that is very unlikely, don’t expect much to change for XLM price-wise in this year. So 2019 will be a year of boring sideways action with minor bitcoin ignited jumps and slumps.
In general:
The main currency in cryptocurrency markets is Bitcoin and given this, altcoins tend to fuel Bitcoin runs and Bitcoin tends to do the same in return. Given this relationship, Bitcoin price movements (or lack thereof) tend to effect altcoin prices.
When Bitcoin goes up swiftly, it will likely:
Suppress or depress altcoins as money flows into Bitcoin;Or, take altcoins along for the rideIn cases when Bitcoin plunges, it will likely:
Depress altcoins as money flows into fiat;Or, cause altcoins to boom as money flows into them, but this is rarely the case.When Bitcoin moves sideways, it will likely:
Cause altcoins to mimic that as traders wait for a clear sign on the direction of the market;Or, cause altcoins to flourish as traders look for returns in altcoins and try to get favorable trades in terms of BTC pairs.XLM-BTC Price CorrelationThe vast majority of trading that occurs in the crypto markets are between BTC and Altcoin trading pairs. Since most Altcoins do not pair with fiat currencies (and only a few are paired with stable coins like USTD), Bitcoin is the next best option. Therefore, when Bitcoin is stable, it forms as the ideal base currency for buying Altcoins (which is why Altcoins tend to do well when Bitcoin goes sideways).
Read our updated guide on best trading bots.
Correlation is measured on a scale from -1 to 1. Values above 0 shows the degree to which altcoin is moving in the same direction as BTC prices (either up or down in tandem), and values below 0 shows the degree to which altcoin moves in the opposite direction of BTC prices (so when BTC goes down, altcoin goes up, or vice versa). Values around 0 shows that when BTC price moves, altcoins stays steady, or alternatively that when altcoin moves up or down that the BTC price is staying steady.
XLM has had a correlation coefficient of 0.90+ for the most of its market life, with occasional drop to zero territory mostly due to the fact XLM couldn’t follow suit bitcoin’s sudden jolts upwards; as shown on the image below – source.
A bullish Bitcoin usually drives Altcoin holders to dump their Altcoins into Bitcoin (because why take risks betting on smaller volume coins when you can make gains on the largest and most traded cryptocurrency).
Considering that Bitcoin is the ‘anchor’ of the crypto market, when Bitcoins price starts to fall, traders begin to sell all other coins and retreat back to fiat or stable coins like Tether.
Majority of altcoins will failThe majority of projects will fail — some startups are created just to gather funds and disappear, some would not handle the competition, but most are just ideas that look good on paper, but in reality, are useless for the market.
Vitalik Buterin, co-founder of Ethereum said:
“There are some good ideas, there are a lot of very bad ideas, and there are a lot of very, very bad ideas, and quite a few scams as well”
As a result, over 95% of successful ICOs and cryptocurrency projects will fail and their investors will lose money. The other 5% of projects will become the new Apple, Google or Alibaba in the cryptoindustry. Will XLM be among those 5%?
Hard to tell but probability for that is better than with most other altcoins but still far from being a wrap.
XLM is pinning most of their hopes on their partnership with IBM which is one of the highlights of project’s history to date. On the other side, the niche XLM is competing in is fiercely crowded with other top-notch crypto projects, most notably XRP. Since the race is considered by many to be a winner takes all, XLM is dancing on a razor thin edge in an effort to capture the global market of payments and value transfers.
Read our updated review of Cex.io exchange here.
Can Stellar reach $1, $10 or $100? Is Stellar dead?Their communities on Reddit and Telegram are also active, although with notably lower engagement levels compared to 2017. Coin is also still listed on all major exchanges which indicates that XLM is far from a dead project.
All of this summed up means one thing: XLM might live through couple of orchestrated and, for a regular trader, completely unpredictable pumps but the majority of time will be murky sideways trading with small volume and no significant interest from the market.
Price will heavily depend on what BTC will do and since many analysts think BTC will not be making big moves in this year, it is hard to expect XLM will do them either. The price will probably stagnate and record slow-moving depreciation or appreciation depending on the team activity, potential technological breakthrough or high-level partnership.
Predicting token price is thankless task – it is not much different than gambling. However, people still gladly make their predictions and even more bigger pool of people search and read them. So here are couple of independent sources and their musings about XLM price in this year.
#1 Long Forecast Stellar PredictionLong Forecast gave an entirely conservative prediction, as their stellar price prediction forecasts that XLM might reach $0.30, which make sit look like it won’t grow much as compared to the current price. Maybe, the end of 2019 prediction is missing if this can be considered the prediction for the 1st half of 2019.
#2 Wallet Investor XLM Price PredictionWallet Investor updates prices and predictions every three minutes using the latest technical analysis. They have very conservatively made a 5-Year forecast of $1.005.
Read our updated guide on top proof of stake cryptocurrencies.
#3 Mega Crypto PriceThe price forecast at Mega Crypto Price has been very optimistic for all the cryptocurrencies and its the same for XLM price forecast, too, predicting that Stellar could be worth $5.10 by the end of 2019. The team says that this can be achieved as long as there are no major security flaws and the overall sector performs well.
#4 Monetize InfoMonetize believes that Stellar’s major partnerships will be the major reason behind an upcoming price surge, which might result in XLM’s price reaching $2-$3 by 2019. Beyond IBM, Stellar’s partners include Stripe, Deloitte, etc.
For example, Stripe gave Stellar a 3-million-dollar capital injection a few years back which Stellar immediately returned in XLM.
#5 The Economy Forecast AgencyThis website features a long-range forecasting model to make market forecasts for corporate clients. The website has its own price prediction for 2020, which says XLM will see a high of $0.64 in 2020, which is by far the most conservative and pessimistic of XLM’s price predictions.
Stellar price prediction 2020XLM price prediction 2020 is not too different to the current year. It will heavily depend on the broader market movements. If we continue the hybernation of 2019, Stellar future price will most likely hover around the same levels like in 2019. Huge spikes and astronomic gains for XLM are only possible in the context of market-wide rampant bull run.
The post Stellar Lumens (XLM) Price Prediction 2020 | 2025 | 2030 – Future Forecast For XLM Price appeared first on CaptainAltcoin.
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