Stellar Lumens price is trading at more than 77% below its last year’s highs of around $0.8. A bounce from $0.168 in January got rejected at the $0.257 level and is now heading towards a lower low. XLM price is once again retesting the multiyear trendline which started after March 2020 crash. A break of this trendline could send the price down to the $0.13 level creating a panic among the bulls.
What is Stellar Lumens?
Stellar Lumens has always aimed to become the crypto-based global leader in cross-border payments. In other words, Stellar wants to replace payment networks like Money Gram and Western Union. Unlike most of its competitors, Stellar Lumens is trying to bridge the gap between the traditional banking system and cryptocurrencies. It aims to achieve that by developing multiple fiat gateways across the globe. The project has already locked several fiat gateway partnerships across the world. However, due to Stellar Lumens’ close ties with the banks, initially, it was considered a shadow project by the major banks. That was also why Stellar Lumens price couldn’t perform that well in its early years.
However, this perception changed when the Stellar Lumens Team actively engaged in pro-crypto conferences while also trying to work with the regulators for broader cryptocurrency adoption. Over the years, Stellar Lumens has also developed several Fiat gateways. The project partnered with Money Gram in October 2021. In addition, it partnered with Argentinian and Chilean companies for the development of stable coins pegged to the respective local currencies in both countries.
Jed McCaleb and David Mazieres launched Stellar Lumens in 2014. Jed was also one of the founding members of Ripple. However, Jed left the project due to his opposing views on Ripple’s roadmap. He was of the view that Ripple was becoming too decentralized, which was against the spirit of crypto. Ripple still remains the biggest competitor of Stellar.
Stellar Lumens was launched as a fork of Ripple in 2014 with more focus on decentralization. Initially, the cryptocurrency was called Stellar. However, the native asset was rebranded to Lumens (XLM) to avoid confusion with the project name, i.e. Stellar Lumens. A nonprofit Stellar Development Foundation runs all the project development.
Roadmap for 2022
Most crypto projects nowadays refrain from publishing detailed roadmaps to avoid unnecessary regulatory attention. Stellar Lumens still published its roadmap for 2022 which shows the team’s determination to stay transparent. Any Stellar Lumens price prediction hugely depends on the project delivery as per its roadmap. The roadmap is available on the Stellar website. It focuses on Interoperability, scalability, and financial inclusion of emerging markets.
The current architecture of the Stellar Lumens network only supports 1000 transactions per second. However, this speed will not be enough if Stellar intends to become the go-to solution for cross-border payments. Therefore, the Stellar Team is working on increasing this throughput to 5000 transactions per second by the end of 2022 while also developing a Layer 2 solution known as Starlight.
Proper smart contract functionality is also on the cards in 2022 for Stellar, as the network needs a DeFi ecosystem to gain more TVL. The 2022 roadmap for the top crypto project suggests that the current year will be filled with a lot of Stellar Lumens news.
Stellar Network Adoption and Stats
The total number of monthly transactions on Stellar Lumens has just touched an all-time high in January 2022, with settling a transaction in 6 seconds on average. As per the Stellar Expert website, the network has settled more than 320 million transactions in January 2022. That is almost four times more than total transactions in January 2021. However, Stellar Lumens price seemed to be unaffected by this increase in network activity.
Nevertheless, despite a steady increase in the number of transactions and the total number of wallets over the years, the number of active wallets on the network has decreased significantly. Currently, the daily active accounts are 24,105, but at the peak of 2018, the figure was 318,259.
The decrease in active wallets on the Stellar network could also be attributed to its underdeveloped DeFi ecosystem. Even to this day, there are very few projects running on Stellar. DeFi Lama only shows a total TVL of $40.51 million locked across 2 DApps on the network, i.e. StellarX and LumenSwap. The TVL was around $50 million just 2 weeks ago.
Stellar Price Prediction 2022
The Stellar Lumens price has been in a strong bearish trend in the past few months. As noted above, the coin has crashed by over 80% from its all-time high. During its decline, the coin has managed to move below all moving averages, signaling that bears remain in control.
Most recently, we see that the coin managed to cross the key support at $0.2580, which was the lowest point in September. Worse, it did a break and retest pattern, which is considered a bearish signal. Therefore, unless a miracle happens and cryptocurrency prices rebound, the overall outlook of the XLM price will be to the downside in 2022. The next key level to watch will be at $0.10, which is significantly lower than the current level.
XLMUSD Daily Price Chart
Considering the overall market sentiment of crypto and the Fed’s upcoming hike in interest rates, a new ATH for XLM price seems to be highly unlikely in 2022, and a target of $0.55-$0.66 seems more probable.
Stellar Lumens Price Prediction 2025
Since cryptocurrencies are one of the most volatile asset classes on the planet, any long-term price projections could be anybody’s guess. Nevertheless, some algorithm-based sites have generated some predictions. For example, data from Digitalcoin and Wallet Investor puts Stellar Lumens price prediction 2025 to be anywhere from $0.5 to $1. Any clear break above Jan 2018 all-time high of $0.93 could also send the price to as high as $1.49, which is the 1.618 Fib level of the retracement from ATH to March 2020 low of $0.027.
Mass adoption and development would be the major factors determining the XLM price in the coming years. If Stellar’s ongoing Central Bank Digital Currency (CBDC) pilot project with the Ukrainian government goes well, then XLM price prediction could go substantially above its previous ATH.
XLMUSD Monthly Price Chart
Stellar Lumens Price Prediction 2030
The project partnered with Money Gram in October 2021 for cross-border remittance-related transactions. The project is currently in pilot in the USA and will spread to 11 other countries soon.
If all Money Gram outlets adopt XLM for payments, it might become one of the biggest fiat on-ramps in crypto. Such massive adoption could send the Stellar Lumens price to Stellar. Furthermore, prices as high as $5-$6 could be on the cards. It is to be noted here that the crypto prediction site Price Prediction has also set Stellar Lumens Price Prediction 2030 from $5.13 to $6.26.
Any XLM price prediction depends on the macro-financial environment as well. That is because, besides volatility, regulatory crackdowns against all cryptocurrencies will always remain on the horizon. Such a drastic measure, if taken, could send the whole crypto market into a multi-year downtrend.
Should I buy Stellar Lumens?
As explained earlier, the stellar Lumens price just bounced off the weekly upwards trendline and 0.7186 Fib level. Nevertheless, the price face rejection at the $0.257 level, and bulls are in control once again. If XLM price faces another bounce from here then it could present a good buying opportunity. On the other hand, a lower low than $0.168 might plummet the price to $0.13 level which could be even a better entry price. The project’s fundamentals look quite bullish, with several key corporate and government partnerships already locked.
Therefore, Stellar could turn out to be a much sought-after asset in the much-anticipated bear market. Therefore, this could be an even better time to accumulate XLM by DCA. Currently, you can purchase XLM from all major exchanges like Coinbase, Binance, Kracken, etc.