Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject.
Introduced in 2014, Stellar facilitates cross-border transfer of money through its decentralized blockchain solutions, with its native crypto XLM acting as the building block for its financial infrastructure. Targeted more towards individuals rather than institutions, the application facilitates the transfer of small amounts.
A simple platform, Stellar has become popular among users due to its user-friendly interface. It is also pretty fast in enabling cross-border transactions as quickly as within 5 seconds. Like all the blockchains, it is decentralized where nobody has complete control over the network.
Due to its increasing adoption, XLM is among the top-30 cryptocurrencies in the world right now, with a market capitalization of over $3 billion.
Why these projections matter
Where Stellar trumps other financial platforms is its low transaction fees which have drawn a huge number of cryptocurrency users to it. It is one of the few blockchain networks that has been successful in collaborating with large tech corporations such as Deloitte and IBM. Stellar, in partnership with IBM, launched a project that enables fintechs to engage in financial transactions using assets such as stablecoins.
Another prominent feature of Stellar is that it gives power to the community to decide what project(s) the blockchain should focus on.
We will now briefly give an overview of the key performance indicators of XLM such as price and market capitalization. We will then summarize what the world’s leading crypto-analysts have to say about the future of this currency, along with its Fear & Greed Index.
XLM’s Price, Market Cap and everything in between
XLM’s price has hiked significantly over the last few years. Back in 2018-2019, it kept falling below its previous ATH of around $0.93 (recorded in early January 2018). It was only in 2021 that its price again began to rise, hitting a price level of over $0.7 around mid-May. However, as the crypto-currency market collapsed in the second quarter of 2022, XLM went into a bearish dive.
At the time of writing, it was trading at $0.119, with a market capitalization of $3.03 billion.
Source: XLM/USD, TradingView
The market capitalization of the cryptocurrency follows its price trends throughout. In early January 2018, it was nearly $9 billion and it skyrocketed to as high as $16.5 billion (May 2021) during the crypto-boom of 2021. In fact, it was performing fairly well in 2022 too until the market crashed during the year’s second quarter.
Stellar has seen many growth spurts over the past few years, such as when Mercado Bitcoin announced its use of the platform. In less than a year, Stellar housed almost 3 million user accounts. Since that time, however, Stellar has built a network of partners that includes Flutterwave and MoneyGram.
XLM’s 2025 Predictions
Readers should first be aware of certain things about market predictions. Different crypto-analysts may choose different sets of parameters to predict the prices of currencies. Therefore, it is self-evident that their analyses and predictions will widely vary. Besides, none can foresee certain political or economic changes such as the ongoing Russia-Ukraine crisis or China’s decision to ban crypto-mining. Investors should therefore conduct their own research before deciding to invest in any cryptocurrency.
Nicole Willing is a financial journalist with over a decade of experience. She writes for the Capital and she recently claimed that the price of XLM has now stabilized after stumbling in May due to the collapse of Terra.
In fact, according to Willing, the altcoin could trade at around $0.325 by the end of 2025. Another AI-based forecaster AI Pickup predicted the average price of XLM in 2025 to be $0.14.
A Changelly blog post added that many experts have observed the prices and fluctuations of XLM over the years, concluding that the crypto could go as high as $0.51 and as low as $0.42 in 2025. Its average price will remain around $0.43 in the said year, it added, with potential ROI of the altcoin projected to be 292%.
On the contrary, Finder’s panel of experts are a little more optimistic about where they see XLM going in the next few years. While the average prediction for 2025 centered around XLM being valued at $12.5, there were outlier predictions which places the crypto’s value at $150 by the aforementioned year.
Lumens’ 2030 Predictions
The aforementioned Changelly blog post also predicted that the maximum and minimum prices of XLM in 2030 will be $2.97 and $2.56, respectively.
According to Willing’s predictions, experts are both bullish and bearish in their assessment of the performance of XLM in 2030. Some predict that it could go as high as $1.28 while some predict that it won’t be able to hike over $0.352.
On the contrary, Telegaon writes that 2030 could be a year of change for the cryptocurrency market as many coins’ values might reach their peaks during this period. It is extremely bullish in its forecast that the cryptocurrency might hit a maximum level of $31.02.
Finder’s panel, as expected, was even more optimistic on this front. It projected a maximum value of $200 for XLM by the year 2030, with an average price of $17.66 for the cryptocurrency.
Now, while the aforementioned projections might sound crazy, there may be some logic to it too. Consider this – Many nation-states across the world are actively considering Central Bank Digital Currencies (CBDCs). Stellar securing a partnership with Ukraine to provide a CBDC infrastructure could be the catalyst it sorely needs. In fact, according to Finder,
“If successful, it may mean the project becomes the go-to infrastructure provider for governments globally.”
Furthermore, according to Dr. Iwa Salami,
“As an increasing number of countries around the world explore CBDCs, concrete examples of successful implementation of these projects by blockchain technology firms is likely to increase the value of their native cryptocurrencies. As such, this may result in an increase in the price of XLM.”
Not everyone’s convinced though, with some like Professor John Hawkins claiming that such updates are unlikely to “save the coin.”
Even so, it’s worth pointing out that most do see some positive impact on XLM’s prices.
Source: Finder
It was in March this year that Stellar stated in its blog that it will launch Project Jump Cannon, an E&D venture to introduce native smart contracts for its blockchain. The same month, it also introduced the Starbridge project that would create bridges between Stellar and other blockchains, enabling interoperability. If Stellar continues to adopt more of such innovations and succeeds in building a larger community, it would significantly increase its price by 2030.
Conclusion
We must note that XLM will be scarce in the future as Stellar doesn’t plan to mint more currency. As it becomes increasingly rare, its value is bound to increase. Such a possible scenario could make XLM a potentially lucrative investment asset.