Stellar Lumens Price - XLM Price Index & Live Chart
Stellar Lumens is an open-source decentralised peer-to-peer framework that provides cross-border payment transactions. The platform also allows for the development of decentralised applications (dApps). Lumen (XLM) is the native cryptocurrency for the network. Stellar was launched in 2014 by Jed McCaleb and Joyce Kim. It originated as a fork from the Ripple network. Originally, Stellar operated on Ripple and was eventually moved onto its own network with its own protocol.
The Stellar network consists of multiple servers and for transactions to be successful, there must be a consensus among all servers in the network. The platform has gained in popularity and has been adopted widely by several non-profit organisations and businesses.
Key Stellar Lumens Price Metrics
Stellar Lumens Price Graph & Exchange Rate
Stellar Lumens (XLM) Price History
In July 2014, Jed McCaleb launched the Stellar protocol on the Ripple network. In January 2015, Stellar had around 3 million user accounts where its market cap rose to around $15 million. In the subsequent months, Stellar partnered with many organisations and platforms like Vumi, a messaging platform, and a banking software company, Oradian. The price of the coin was around $0.0017.
In 2016, Deloitte partnered with the platform to build a cross-border payments application. The price of the coin rose to $0.002. In May 2017, Lightyear.io, a profit-based entity of Stellar was launched with the value of the coin rising to $0.005.
In the latter part of 2017, several more strategic partnerships were announced like ICICI bank and KlickEx. The Stellar Development Foundation announced that it would award partners up to $2 million worth of XLM coins for project development. By the end of December 2017, the value of the coin rose by 8800% from its value in 2015.
In 2018, riding the wave of the crypto boom, the coin reached an all-time high of $0.919994. However, in the subsequent months, the value of the coin dropped to around $0.11 by the end of December 2018.
2019 was not a great year for the cryptocurrency market and the value of XLM reflected that, staying within the $0.005 — $0.015 price range. In 2020, Stellar quietly expanded its network to include more financial partners like Abra, a crypto wallet service, IBM with its launch of World Wire, a global payments system, and Samsung Galaxy.
3 Key Instances for the Evolution of Stellar Lumens Price
Partnership with IBM
IBM announced its partnership with Stellar Lumens in 2019. There is a lot of anticipation and excitement surrounding this collaboration. IBM is going to use Stellar as a payment platform to build a global payments system that offers security and transparency. The new financial transactions system is called World Wire and focuses on international payments. Additionally, six banks have announced the launch of “stablecoins” to use on the system. With this partnership, Stellar aims to disrupt the financial services industry. It is yet to be seen how fruitful this collaboration would be for the price of the coin in the long run.
Burning half the supply
The Stellar Development Foundation (SDF) reduced the supply of Lumens by half, from 105 billion to 50 billion. The foundation claimed that the remaining funds would be dedicated to investing in developments to the blockchain and encourage widespread adoption. 8 billion of the tokens have been kept aside to fund partners or businesses that plan to adopt the stellar ecosystem. The news was received positively by the community with the price increasing by 20% to around $0.088.
Collaboration with USDC
In 2020, it was announced that the US dollar-based stablecoin USDC will be using the Stellar blockchain from the first quarter of 2021. USDC is the second-largest stablecoin in the market after Tether. Currently, the coin is mainly hosted on Ethereum. The CEO of Stellar hopes that the addition of USDC would allow Stellar to expand its global reach. The trading volumes of XLM almost doubled within 24 hours post the announcement.
Key News for Stellar Lumens Price
XLM has been strategically accruing global partners that allow it to fulfil its vision to create an easy to use, cheap global payments system. 2020 was an unpredictable year for the cryptocurrency market in general. The Coronavirus pandemic has left the world shaken and it is only natural that this uncertainty spills into the crypto world. On the 12th of March 2020, referred to as “Black Thursday” the cryptocurrency market had crashed. The value of coins plummeted with the value of XLM dropping to $0.035.
The coin picked up considerably after that, due to the constant developments being made on the Stellar platform through strategic collaborations. XLM surged again in the first half of 2021, peaking at $0.73 in May.
Stellar Lumens Price Technical Analysis: How to Identify Good Entry/Exit Points when Trading
You need to enter an investment at the right time, usually when the price of the coin is low with the potential for an upward trend. You also need to be able to choose the right time to sell without regretting it the next day or the next week. Once you know that the profits you wished for have been achieved, is it prudent to exit? At times, the price predictions would show a continuous positive trend beyond the point where you have met your objective. It is up to you to decide if you are willing to take the additional risk of holding onto the investment to reap higher gains. Keep yourself fully informed on the price and volume fluctuations around the coin. Doing sentimental and fundamental analysis also would help you make the right decisions.
Have a Clear Goal
You need to have an end goal in mind before investing and trading Stellar Lumens. Goals could be personal or business-oriented. Break down your future vision into simpler, more tangible targets; both long-term and short-term. This will help you map out a good investment plan. Once a plan is formed, it is important to track it and tweak it whenever there is a change in circumstance. A good strategy and clear objectives prevent you from making rash, and panic-induced decisions.
Make Use of Analysis Tools
Informed decisions using the right tools could be the key to successfully investing in Stellar Lumens. There is a broad range of cryptocurrency-based financial analysis tools available for your benefit. Brokers and exchanges often provide live data of the current market performance. Technical analysis involves data analysis of price and volume movements to predict the future performance of the coin. Price trends can help predict future price movements because there is a belief that history repeats itself. Some of the key terminologies used for trends are upward, downward and sideways trends. Analysts also use the terms “Bullish” to indicate investors who push the price upwards and “Bearish” with those driving prices down.
Identifying resistance and support levels is also important when analysing price patterns and finding a good time to buy XLM. There are charts which depict the price movements in the form of “candlesticks”. A red candle indicates the closing was worse than the opening price and a green candle indicates the opposite. MACD is another useful indicator that looks at a combination of a short-term moving average and a long-term moving average. It is used to identify changes in momentum. There is a lot of information available that will help you understand and interpret the various price and volume indicators.
Fundamental and Sentimental Analysis
Both fundamental and sentimental analysis are great complementary tools for investment research. The cryptocurrency market is very susceptible to trending mainstream and social media news and the value of the coin can fluctuate based on speculation. There are several data analytic tools available that can capture the mood or sentiment of the community around a coin for a period and map out price predictions.
Fundamental analysis is another good technique that looks deeply into other aspects of the blockchain network like transaction speed, on-chain metrics, and privacy and security features.
Frequently Asked Questions
Like any other cryptocurrency, the price of XLM is also determined by various factors such as innovations, partnerships, and political and social developments.
Future value of any cryptocurrency cannot be predicted with certainty. However, many trade analysts feel that the value of Stellar Lumens could reach $5 while the more conservative predictions are that the value of the coin could touch $1 by the year 2025.
Lumens are openly traded on global exchanges and investors see it as a store of value. Additionally, as the adoption of the Stellar platform increases the volume of transactions on the network will increase. Since Lumens is an essential component of Stellar, the value of it should also grow with the growth of the platform.