From a high of $0.79 in January 2018 to the latest current price of $0.07 in May 2020, XLM has without doubt seen worst days.
However, the price of the crypto is not going down without a fight. While the Stellar Lumens price drop may be significant, it has not been a smooth decline all-through. There are times the cryptocurrency resisted the bears and other times the bears outrightly took over.
Interestingly, despite the bears seemingly having the upper hand, the virtual currency occupies position 13 in the cryptocurrency market. Currently, it has a market capitalization of $1.4 billion, a circulating supply of 20.2 billion XLM, a total supply of 50.0 billion XLM, and a 24-hour volume of $498.09 million.
So, is the price of XLM ready to take its place in the cryptocurrency market? Are investors still stocking or they’re emptying their bags? Is the future growth making XLM a good investment?
In this Stellar Lumens price prediction, we explore the various XLM technical analysis targeting its price. We also sample views of whether XLM is capable of moving from its current price to hit a price of $1 or even $100.
What is Stellar?
Stellar is an open-source blockchain platform that promises to revolutionize the global financial sector. It’s built to connect payment systems, individuals, and institutions, allowing them to seamlessly transfer funds while keeping the transaction fees low and enhancing the transaction speed. These features lack in the current traditional financial system.
Open-source network unlike Ripple
Despite McCaleb moving from Ripple, Stellar is not a complete replica of Ripple. For instance, while Ripple is a closed network, Stellar is open source meaning that anyone can join and view activities.
Also, while Ripple markets itself to seasoned firms in the financial sector to ease their cross-border transactions, Stellar is more into developing markets with a critical focus on the unbanked.
To propel Stellar to achieve its goals, the Stellar advisory board members include the Stripe’s CEO, Patrick Collison, WordPress Founder, Naval Ravikant, among other professionals in the business and financial sector.
However, it has some significant advantages when compared to other top blockchain platforms.
Federated Byzantine Agreement algorithm
The Stellar consensus protocol (SCP) employs the Federated Byzantine Agreement algorithm to reach an agreement. With this approach, the platform doesn’t have to rely on all the nodes/servers on the network when it comes to verifying transactions. Instead, it uses a section of the network to decide whether or not to add a transaction on the Stellar blockchain. A node nominates the portion of the network to approve a transaction with each server choosing a group of nodes it considers reliable.
To live to its promise of powering frictionless cross border transactions, the platform utilizes its own virtual currency.
Lumens (XLM) embraces the openness
Commonly referred to as Stellar Lumens (XLM), or just XLM, Lumen is the native crypto on the Steller blockchain. Sometimes, new entrants in the market interchange these two terms to read Lumen stellar. This is incorrect.
According to information on the Stellar Lumens website, Lumens (XLM) was created to provide “a digital-first asset that embraces the openness of the internet and is independent of economic and political factors,” and “intended solely for dominating network requirements.”