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This year has been a tough sail for Stellar since May 2022, when the Terra/Luna implosion caused a cascade of bankruptcies, layoffs, and liquidations. Subsequently, the chain of unfortunate market and geopolitical events like the Russian invasion of Ukraine, U.S. inflation, and 3AC and Celsius insolvency, has also contributed to the downward pressure on the price of XLM.
With the recent massive downfall of the crypto market caused by FTX contagion, is it possible for Stellar to reclaim its all-time high in 2023? Continue with the article to learn about Stellar price analysis and prediction by Coinpaper.
Read also: XRP Price Prediction 2023. Should I buy XRP?
What is Stellar?
Stellar (XLM) is an open-source decentralized payment network that enables fast and low-cost transactions. It is based on the Stellar Consensus Protocol (SCP), which enables users to send and receive payments, exchange currencies, and more. The protocol itself is a fork of Ripple, from which it inherited fast money transfers and small fees — the average transaction cost on Stellar blockchain is just 0.00001 XLM. The token itself is similar to Ripple’s XRP, as it is primarily used to facilitate cross-border payments, asset exchanges, and remittances on the network.
Stellar (XLM) price
Currently, Stellar Price is USD. XLM has a circulating supply of coins and a total supply of . If you are looking to buy or sell Stellar, Coinbase is currently the most active exchange.
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Stellar price prediction 2023
The current market sentiment is full of fear, uncertainty, and doubt (commonly known by the acronym FUD), as fears of FTX contagion mount. At the moment, it’s difficult to assess exactly how much damage has FTX collapse has done to the crypto industry, since some affected crypto companies may be already secretly insolvent due to highly leveraged positions, as we have seen in the aftermath of Terra's implosion.
According to our estimates, it will take months for the full scale of FTX bankruptcy to become clear, so the turning point for the crypto market won’t come before late Q1 to early Q2 2023, although for now, it seems that the industry has absorbed most of the damage.
Another market factor that should be taken into consideration is how successful will be the U.S. Federal Reserve’s efforts to curb inflation. For now, there is reason to believe that Fed is making some progress in its attempts to cool the overheating economy — on November 30, Federal Reserve Chair Jerome Powell announced it’s time to slow the pace of coming rate hikes, which immediately triggered a positive reaction from both crypto and equity markets.
Given the above information, one can easily guess that there will be a considerable divergence between bullish and bearish Stellar 2023 price predictions due to multiple unknown factors. For this reason, we estimate that the bullish scenario will see Stellar price at $0.111 to $0.13. On the flip side, a fading interest in the new meme coin may push the price of Stellar to $0.065-$0.054 lows.
Stellar price prediction 2024
In 2024, the global macroeconomic backdrop is likely to be more favorable to the crypto market, adding value to Stellar (XLM) and other cryptos. However, the possibility of black swan events similar to the collapse of FTX cannot be completely ignored.
Keeping this in mind, we foresee the price of Stellar to climb as high as $0.17, with the more distant prospect of reaching $0.21 in 2024. The bearish scenario is likely to see Stellar (XLM) trading between $0.09 and $0.074 in 2024.
Stellar price prediction 2025
Since it’s practically impossible to foresee what market factors will influence cryptocurrency prices in 2025, this part of our Stellar (XLM) price analysis and prediction is based on pure speculation and observation of Stellar historical price movements.
Our Stellar 2025 price forecast expects XLM to rally towards $0.25 and reach $0.27 by the end of the year. The bearish scenario would see Stellar at $0.17 to $0.12.
Stellar (XLM) price prediction 2026
Looking ahead four years, to 2026, Coinpaper's price prediction for Stellar is neutral. In 2026, we expect Stellar to reach at least $0.35 before climbing higher to $0.41. In case of a bearish scenario, Stellar may fall to $0.23.
Is Stellar (XLM) a good investment?
Stellar (XLM) has a solid real-world usability and scored a number of high-profile partnerships, including IBM, MoneyGram, and UNHCR. However, its degree of decentralization is questionable, as Stellar Development Foundation holds about 60% of XLM supply, plus the token doesn’t generate staking rewards, so there’s really no incentive for Stellar users to hold XLM except the very tiny amount to cover network fees. However, the XLM coin can still be a nice addition to your portfolio if you believe that cross-chain payments are the future of the blockchain tech.
Bottom line
Are you ready to invest in Stellar? Very few if any analysts forecast its value going down to zero, although you can’t be sure these days, so make sure you always do your own research before making investment decisions. And keep in mind that cryptocurrency prices can be extremely volatile, so trading crypto always involves a high degree of risk.
You can buy XLM from many crypto exchanges, including Coinbase
Disclaimer: Coinpaper does not recommend that any cryptocurrency should be bought, sold, or held by you. Always conduct your own research and consult your financial advisor before investing in any digital asset.
FAQs
Who created Stellar?
Stellar was founded by Jed McCaleb and Joyce Kim who left Ripple in 2013 over disagreements about the company’s future direction.
What was the all-time high for Stellar (XLM) ?
The all-time high price of Stellar is $ on 2018-01-03
