THE price of the Stellar cryptocurrency has risen 253% over the past year.
The cryptocoin, also known as XLM, has benefited from increased interest in cryptos and the search for the next bitcoin this year.
XLM is known as a “distributed, hybrid blockchain”Credit: Alamy
Cryptocurrency prices hit record highs earlier this year as there was interest from high profile figures like Elon Musk and other institutional investments in the sector.
The most valuable coins are Bitcoin and Ethereum, but there are many alternatives or altcoins that aim to capitalize on crypto rates.
However, values can be volatile and regulators have warned that investors could lose all of their money.
We reveal price predictions for 2021 – and whether XLM could hit $ 1.
What is XLM?
XLM was launched in 2014 by Jed McCaleb and Joyce Kim after they both left rival cryptocoin Ripple due to disagreements over the company’s direction.
It is described as a “distributed, hybrid blockchain” that allows money to be moved and stored faster and at a lower cost.
The digital currency is based on tokens called lumens.
A lumen can be purchased on crypto exchanges such as Binance, Blockchain, eToro and CoinTiger.
One of XLM’s earliest partnerships was IBM, which uses the XLM network to allow financial companies to transact with its blockchain technology.
What is the XLM price?
The XLM price, or the value of a lumen, is $ 0.335 on Aug 27, according to CoinMarketCap.
Its value is down 1.99% in the past 24 hours, but is 253% higher than last year when it was $ 0.096 in August 2020.
XLM hit an all-time high of $ 0.938 in January 2018, and the next one it has hit since then was in May 2021 at $ 0.796.
XLM price predictions for 2021
Exceeding a $ 1 valuation is one of the first milestones many cryptos seek to achieve.
A poll of 732 crypto enthusiasts on CoinMarketCap has predicted that the XLM price will rise 13.3% over the next six months.
This would give a lumen a valuation of $ 0.388.
5 Risks of Crypto Investing
BELOW we summarize five risks of investing in cryptocurrencies.
- Consumer protection: Some investments that advertise high returns on crypto assets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: The significant price volatility of crypto assets combined with the inherent difficulties of reliably valuing crypto assets puts consumers at high risk of loss.
- Product complexity: The complexity of some products and services related to crypto assets can make it difficult for consumers to understand the risks. There is no guarantee that crypto assets can be converted back into cash. Converting a crypto asset back into cash depends on the demand and supply in the market.
- Fees and Charges: Consumers should consider the impact of fees and charges on their investment, which can be greater than that of regulated investment products.
- Promotional material: Firms can overestimate the return of products or underestimate the risks involved.
CoinPriceForecast users are a little more optimistic and expect the price to hit $ 0.39.
However, investors may have to wait a few years to cross the $ 1 mark.
CoinPriceForecast users predict the price will increase from $ 0.56 to $ 1.38 between 2023 and 2027.
WalletInvestor’s forecasters expect the XLM price to rise to $ 0.642 by the end of 2021 and to $ 1.56 by August 2026.
Quinn Markwith, eToro crypto market analyst, said Stellar is growing in popularity on its trading platform.
He said, “Stellar has a number of impressive partnerships with companies like Stripe and IBM.
“But more recently it has been reported that she has been considering buying the established online money transfer service MoneyGram.
“This could potentially open up the use of the crypto asset to a large untapped base of customers who are not currently transferring money over a blockchain network.
“Although there are still no signs that the deal will come about.”
We explain whether Ethereum could overtake Bitcoin in the future.
We also reveal price predictions for 2021 for other major cryptocurrencies like Ethereum, Dogecoin, and Cardano.
It comes as Bitcoin and Ethereum values fell in May after China announced further crackdown on cryptocurrencies.