Should You Invest In Xlm Crypto?

Stellar Lumens (XLM) is a first-generation cryptocurrency that launched in July 2014. It is designed to provide the unbanked and underbanked with access to financial systems and facilitate seamless cross-border payments. Since its launch, it has become a key part of many crypto investors' portfolios.

XLM has shown promise, with its value rising from a fraction of a cent to $0.1087 as of 28 September 2022. However, it has experienced wild swings, climbing to $0.73 in May 2021 before trending downwards.

Stellar has several major partnerships, including with Deloitte, International Business Machines, Tempo Money Transfer, Coins.ph, TransferTo, and Flutterwave. It has also formed a partnership with the Ukrainian government to develop a national digital currency.

While XLM has the potential to be a good investment, it is important to remember that cryptocurrencies are highly volatile and unregulated in some countries.

XLM's performance and potential

XLM, or Stellar Lumens, has been described as a good investment with huge potential for future returns. It is one of the oldest altcoins in the crypto finance space, having been launched in 2014, and is currently the 24th largest digital asset in the world.

XLM's performance has been impressive, with a 125% return by the end of 2021. It has also maintained an uptrending graph line for its prices. At its current price of $0.28, it is up by more than 23,465% from its all-time low, with as much as 125% gained by the end of 2021.

XLM's performance in 2022 has been less impressive, with a 30-day volatility of 1.31 and multiple price swings. However, it is still considered a good investment, especially for long-term investors, due to its potential for future growth.

One of the biggest reasons for XLM's potential is its major upgrades, which have improved the flexibility of the interaction between the Stellar Core and Stellar-based applications. These upgrades could open up the network to more innovative solutions, leading to a massive increase in its price.

Additionally, XLM has fostered partnerships with well-established centralised institutions such as Deloitte, International Business Machines, Tempo Money Transfer, Coins.ph, TransferTo, and Flutterwave, which have employed its network for their software solutions.

XLM is also expanding into the decentralised finance (DeFi) space. In February 2021, it formed a partnership with Flare, which will allow the creation of XLM-backed tokens that can be used on decentralised applications such as the lending platform Uniswap.

XLM also has the advantage of being extremely accessible, as it can be found on the top cryptocurrency exchanges and brokerages worldwide. This brings more liquidity to the cryptocurrency and results in a positive valuation of the asset.

Furthermore, XLM has a maximum supply that is subject to scarcity in the future, and it scales relatively faster than other blockchains due to its Stellar Consensus Protocol (SCP), which can process 1,000 to 5,000 transactions per second.

Analysts' predictions for XLM's future price vary. Wallet Investor foresees an average price of $0.30 and a maximum price of $0.513 by the end of 2022. Digital Coin Price predicts a price of $0.55 in 2024 and $0.57 by the end of 2025. Coin Price Forecast is more bullish, predicting a price of $0.81 by the end of 2030.

Overall, XLM has shown strong performance and has the potential for future growth, making it a good investment option, especially for long-term investors.

Stellar's blockchain technology

Stellars Blockchain Technology

Stellar is a decentralised, public blockchain that provides developers with the tools to create experiences that are more akin to cash than crypto. The network is faster, cheaper, and far more energy-efficient than most blockchain-based systems. It is designed to enable Stellar's ecosystem to have a tangible, long-lasting influence on the real world.

Speed, Cost and Energy Efficiency

Stellar's network is faster, cheaper, and more energy-efficient than most blockchain-based systems. Transactions on the Lumens network, for example, are settled in as little as five seconds and cost less than pennies, making them ideal for both international and consumer transactions.

Soroban Smart Contracts

Soroban is a developer-friendly, Rust-based smart contracts platform designed for scale and sensibility. Soroban seamlessly integrates with and works alongside the thriving Soroban ecosystem of over 70 projects.

Anchors

The Stellar anchor network supports over 180 countries and over 20 digital assets. By integrating anchor services such as on and off-ramps, cross-border payments and fiat-backed digital assets, builders can offer new payment services for end users and reach customers in new markets worldwide.

Grants

Stellar provides grants to support the development and growth of early-stage Web3 startups.

XLM's volatility

XLMs Volatility

Like all cryptocurrencies, Stellar Lumens (XLM) is subject to volatile and unpredictable price fluctuations. This volatility is driven by highly speculative instruments that are challenging to interpret, even for seasoned investors and with the use of price prediction tools.

Analyzing XLM's price history provides insight into the coin's volatility. From its launch in 2014 at around $0.003 per coin, XLM exhibited modest growth, breaking through the cent barrier in May 2017. The crypto market boom towards the end of 2017 and early 2018 propelled XLM to its all-time high of $0.9381 on January 4, 2018. However, this high was short-lived, and the price of XLM soon retracted, spending most of the rest of 2018 between $0.20 and $0.40.

In summary, XLM has exhibited significant price volatility since its launch, with sharp rises and steep drops influenced by various market factors and external events. Investors considering XLM should be aware of its volatile nature and carefully assess their risk tolerance and investment goals before making any decisions.

XLM's accessibility

XLMs Accessibility

Stellar Lumens (XLM) is a first-generation cryptocurrency that launched in July 2014. It is designed to provide the unbanked and underbanked with access to financial systems and facilitate seamless cross-border payments. The Stellar network was made to support digital representations of any currency, but it also has its own native token, the lumen (XLM).

The Stellar network is a universal system for digital money, and as such, it could have allowed people to pay the costs in any currency. However, the creators didn't want the network to "prefer" any particular national currency. They also wanted to create a digital-first asset that embraces the openness of the internet and is independent of economic and political factors. To achieve this, they introduced a minimum balance on each account and a very small per-transaction fee. At the time of writing, the minimum balance is 1 lumen and the minimum per-transaction fee is 0.00001 lumen. These are small enough to keep the Stellar network widely accessible but big enough to discourage large-scale bad behaviour.

The Stellar payment protocol is based on distributed ledger technology, which is open-source, community-owned, and distributed by the community. The crypto asset of the Stellar platform helps with cross-border transactions, overcoming the problems of high fees and slow procedures. XLM is more focused on assisting individuals in transferring money than with institutions. Thus, Stellar offers access to financial systems, and people can send money at a low cost and promptly around the world.

The network also uses a development called Anchors, which simplifies the exchange within the network and accelerates the entire process. Support for multi-currency transactions is another competitive advantage of Stellar, and the ability for cross-currency transactions has only enhanced processes with foreign operations. Moreover, stable speed and low transaction costs are a privilege that users receive.

Stellar is also a decentralized exchange with a built-in order book that tracks ownership of Stellar assets. Platform users can manage buy/sell orders, as well as select and set their preferred assets in settlements. XLM is a built-in coin that helps reduce transaction fees.

Stellar Lumens can be acquired on many exchanges, including Binance, Coinbase, Kraken, Bittrex, Bitfinex, Upbit and Huobi.

XLM's scarcity

XLMs Scarcity

The scarcity of XLMs is an important factor to consider when evaluating the potential investment prospects of the cryptocurrency. Stellar Lumens (XLM) is the native digital currency of the Stellar network, which was founded in 2014 by Jed McCaleb and lawyer Joyce Kim. Stellar is a not-for-profit company that aims to facilitate cross-border transactions and provide access to financial systems for the unbanked and underbanked.

One of the key features of XLM that sets it apart from other cryptocurrencies is that it is not a proof-of-work (PoW) coin like Bitcoin. This means that instead of relying on miners to validate transactions, Stellar uses a consensus method through a series of servers that sync with each other for verification. As a result, transactions on the Stellar network are settled within 2-5 seconds, making them ideal for both international and consumer transactions.

In terms of scarcity, Stellar differs from Bitcoin in that it has a fixed total supply of 50 billion XLM, and no more will be created. This limited supply is an important factor that could drive up the value of XLM over time, particularly as the demand for Stellar's platform is expected to increase. This scarcity, combined with the efficiency and security of the Stellar network, makes XLM an attractive investment opportunity.

The Lumen is Stellar's cryptocurrency, and the company requires that each account holds a modest number of Lumens at all times to cover the small fee charged on every transaction. This fee is extremely low, with each transaction costing just 0.00001 XLM. This helps keep costs minimal for users, especially considering that one unit of this cryptocurrency typically costs only a few cents.

The scarcity of XLM, combined with its unique features and growing demand, makes it a compelling investment option for those looking to add a cryptocurrency to their portfolio. However, it is important to remember that the cryptocurrency market is highly volatile, and prices can fluctuate significantly. Therefore, investors should carefully consider their investment goals, risk tolerance, and available capital before deciding to invest in XLM or any other cryptocurrency.

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