Cryptocurrencies have had a bad few weeks recently.
In what’s being called the “Crypto Crash of 2021,” the volatile crypto market lost $1 trillion in market value. Of course, this is just a part of the wild ride that is the cryptocurrency rollercoaster.
But it turns out there’s one cryptocurrency that’s slated to survive the crypto crash in pretty good shape—and that’s Stellar Lumens (XLM).
This new cryptocurrency is a promising open platform and concept coin with a lot going for it. So let’s take a look at the latest Stellar Lumens news, as well as the Stellar Lumens price prediction for 2021.
Stellar Lumens: A Little History
Before we turn to the Stellar Lumens news and predictions for 2021, let’s take a look at this cryptocurrency’s backstory.
As with most cryptos, Stellar Lumens involves a blockchain platform as well as a native cryptocurrency. Stellar is the name of the open-source blockchain system, which allows for rapid, efficient transactions for a number of different currencies.
Stellar is billed as an open financial network, designed to give people of many different income levels the opportunity to access cheap financial services. These services include micropayments, remittances, and mobile money, as well as access to a distributed exchange feature.
Lumen is what the native cryptocurrency that runs on the Stellar blockchain is called. Of course, it’s also known as Stellar Lumens.
It turns out that Lumens don’t need the approval of traditional cryptocurrency miners—which is why transactions are much swifter on the Stellar blockchain. The combination of the innovative Stellar blockchain platform, and its promising cryptocurrency, is one reason why the Stellar price has been steadily rising and outperforming predictions.
Reasons for Optimism
What are some of the reasons to be optimistic about the long-term viability of Stellar Lumens cryptocurrency?
Well, there’s an interesting confluence of technological and business partnership factors that may conspire to see Stellar Lumens at the top of the heap. Let’s take a look at some of them:
One of the reasons for the success of Stellar Lumens has to be its partnership with IBM, whose blockchain division has decided on using XLM as its favored cryptocurrency.
Another factor to consider is that Stellar is targeting the Middle East, implementing new Shari’a compliance measures to help integrate with this valuable market.
Ease of Use
The nature of the Stellar blockchain is such that it’s quite easy to create and trade digital currencies, as well as convert between them on a single network.
With the looming possibility of central banks issuing their own digital currencies, there will be the need for a public blockchain network. This means the for-profit blockchain networks are not likely to garner any business from the central banks.
Stellar, however, due to its public and non-profit nature, will be an attractive network for central banks to use. And this will only mean the network will continue to be valuable in the long haul.
Stellar is far more energy efficient than other blockchains since it is not a proof-of-work (PoW) network. With today’s cultural preoccupation with energy and environmentalism, the energy-squandering networks are likely to face an uphill battle for long-term survival.
Stellar Lumens News and Predictions
So now let’s get down to the Stellar Lumens latest news and predictions.
The Stellar Lumens predictions for 2021 are looking pretty…well, stellar. That’s because even with the great mid-May crypto crash, Stellar Lumens is up over 200% compared to this time last year.
At the end of last year, Stellar Lumens was trading at about $0.12, but now it’s trading at $0.42. This indicates a pretty steady growth—though certainly not as spectacular as the growth experienced by the big cryptocurrencies like Bitcoin and Ethereum.
And the price of Stellar Lumens cryptocurrency even rose to as high as $0.87 just before the crypto crash. So you can see that predicting the price of Stellar Lumens is rather dicey.
That’s why you should be leery of any firm Stellar Lumens predictions. The truth is, the cryptocurrency market is too volatile to offer anything like the stability required for meaningful forecasts.
Of course, that’s just the nature of the game. As with all the other cryptocurrencies, the price of Stellar Lumens is dropping. Just look at Bitcoin (BTC)—from an all-time high of over $64,000 in mid-April, the crypto crashed to $30,000 on May 19, erasing almost six months of steady gains.
The same goes for Ethereum (ETH), which is hovering at around $2,500 after a high of around $4,100 earlier in the month. So remember to do your homework before making any investment.
Still, Stellar Lumens has a quick, efficient system that seems to be here to stay.
Stellar Lumens 2021 Prediction
What can we expect for Stellar Lumens in 2021?
Given the extreme market volatility, any prediction must be taken with a grain of salt. Nevertheless, there are a few hardy souls who have ventured to make some predictions for XLM in the coming year.
Wallet Investor, for instance, predicts that Stellar Lumens will reach $0.66 by the end of the year. And TradingBeasts forecasts an end-of-year price of about $0.57.
And who knows? In the years to come, the cryptocurrency may even break the $1 mark and go even further.
Know Before You Invest
It all comes down to this: investing in cryptocurrencies is tricky. For the time being, though, Stellar Lumens seems like a pretty safe bet.
So keep up on the latest Stellar Lumens news, and invest your money accordingly. And if you’re looking for more financial news and advice, please check out the rest of our blog!