Increased speed, scalability and reduced cost of transactions are the three main criteria that blockchains are constantly seeking to improve. Stellar is one of the many projects that are trying to contribute to the blockchain by having a positive impact on these three criteria.
[Updates add]: Do not forget to see the updates of this post below. Is Stellar a good investment in 2022?
- Stellar is project aiming to improve the blockchain transactions.
- It supports thousands of transactions each second.
- Supports all currencies on the global scale.
- The price of the the Stellar token (XLM) depends on the price of Bitcoin in the following month.
- Stellar can be an investable asset in 2022 if Bitcoin does not lose its value.
- More details about the predictions of XLM in the follwoing months is given below.
In this post, we will overview the Stellar payment protocol and share our predictions about its future price and answer the question “is Stellar investable in 2022?”
Contents of this post
- Understanding Stellar
- The Features of Stellar Blockchain
- What is Stellar’s token Lumens? ($XLM)
- Is Stellar investable in 2022? Price predictions
- Is XLM a Good Investment?
- Conclusion: Is Stellar investable in 2022?
Stellar is a payment protocol. It allows quick, international transactions between all pairs of currencies. Overall, the Stellar project is similar to other blockchain-based cryptos.
Stellar’s official website says that “ [Stellar] is a platform that connects banks, payment systems, and people.” The project intends to move money quickly, reliably, at a very low cost.
Stellar utilises Lumen to power the entire range of operations on the blockchain network.
However, there is a 1% annual inflation on the Lumen creation rate.
The features of Stellar Blockchain
- The Stellar database is decentralized and open-source – which is the main and common feautres of a blockchain platform.
- Transactions are very fast – confirmation time is less than 5 seconds.
- It supports thousands of transactions each second.
- It has a 1% fixed annual inflation.
In general, Stellar is an exchange network with the power to host thousands of exchanges between currencies each second. Therefore, it is of great value.
Currently, transferring cryptocurrencies is a long and very costly process. The Stellar platform makes it quick and considerably cheap. Lumens ($XLM) which is the token used in the Stellar platform, can be utilised to pay the fees for transactions and manage accounts.
What is Stellar’s token Lumens? ($XLM)
While the Stellar platform is open to all types of money and crypto, it has its own local currency called Lumens, or XLM, which is the foundation of the network.
Lumens are most often used to pay transaction fees on Stellar. However, Lumens also act as the intermediate currency that allows Stellar users to execute trades quickly.
More details about Lumens
Lumen is used to facilitate transactions and procedures in the Stellar network. Without some nominal barrier or cost, the ledger might become filled with spam, or be used as a type of arbitrary database system.
These results could defeat the intent behind Stellar for bing an efficient payments system while being fast.
Since Stellar is a global system for digital money, Stellar could have allowed people to pay these costs in dollars, pounds, or anything else. But the Stellar network decided to improve the process.
First, the network doesn’t “prefer” any particular currency. Second, Stellar has aimed to make a digital-first asset that embraces the openness of the internet and is independent of economic and political factors.
Therefore, the Stellar project gave the network its own currency, intended solely for denominating network requirements. That currency is the lumen with the symbol XLM.
With all this, let’s get into the main question of this article: Is Stellar investable in 2022?
Is Stellar investable in 2022? Price predictions
Two different scenarios can be imagined for the price of XLM.
If the Bitcoin price remains in the current stable position and does not lose its value in the following weeks, we can expect a rise in the price of XLM from its current price (0.2$) to 0.60 – 0.7$ in the next 3 months.
However, if the bitcoin loses its value again, the price will go down to the support area that is 0.13$ which can be a good opportunity for long-term investment. See the image below for more details.
See the high-quality version of the image below at this link.
Also, another prediction states that the crypto can hit 39.3 cents before the end of the current year and 45cents in 2023. Just before the beginning of the year 2025, XLM price is likely going to rise to as much as 49 or even 50 cents.
[UPDATE] News that makes Stellar a good investment in 2022
Here I have added some of the latest news regarding Stellar. The tweets below include some of the latest projects that can increase Stellar’s value, making Stellar a good investment in 2022. So if you are asking whether Stellar is a good investment in 2022 or not, read some of the tweets that I think will help you answer the question.
Is there a change you can imagine that would make the world a better place? Submissions are open until May 15 for the Stellar Community Fund! Kickstart your Stellar-based project, get feedback, and win funds to pursue your vision. https://t.co/37DtrZrYPa
— Stellar (@StellarOrg) February 22, 2022
Today, fast-growing crypto platform @Okcoin became the first US exchange to integrate USDC with Stellar capabilities, providing a notable on-ramp for retail and institutional customers. https://t.co/Lv57qwlHU3
— Stellar (@StellarOrg) February 10, 2022
I also found a good post, confirming what I have written here. If you’re still doubting if Stellar (or other similar projects) will be a competition to the ETH network, read the contents of the tweet below:
Ethereum is only a good investment because people pour money into it. In reality, the Ether gas fees are totally insane and unusable in practice. Polygon, Loopring, Stellar Lumens or many others will step in with much lower fees & begin to dominatehttps://t.co/z80JO64slm
— JH Salem (@JHSalem1) February 20, 2022
What makes stellar an investable project?
Main features and unique goals of Stellar that make it an investable asset in 2022 include:
- Stellar is an interoperable payment and currency source network.
- Lumens is a decentralized system.
- Transparency is the principle and belief of this Stellar Lumens coin.
- Stellar XLM is a fast, efficient system for trading, saving, and spending digital money for its users.
- Stellar blockchain is an unrestricted financial infrastructure system.
- Stellar Lumens is freely accessible to everyone on its Stellar Lumens grid.
- There is no need for any permission or application as such to operate in the Stellar Lumens.
- The Stellar blockchain helps in simplifying the fintech products on the Stellar Lumens orbit.
- Peer–to–Peer tokens can be traded on this Stellar Lumens.
- Users can issue their own assets on this Stellar Lumens.
- Users can transform currency on the Stellar Lumens as soon as it is sent on the Stellar Lumens grid.
Is XLM a Good Investment?
When determining if Stellar’s token XLM is a good investment or not, there are two primary factors to take into account:
The Performance History of XLM
Overall, historically Lumen ($XLM) has shown promise. Since the inception of this project, XLM’s value has grown up from a small fraction of a cent to $0.2127 as of 15 Feb 2022.
However, there have been some swings and volatilities in its price. for instance, XLM climbed from less than 9 cents in late 2020 to 73 cents in mid-2021. Nevertheless, the price has fallen back to its current price hovering just above 21 cents. This swing shows that XLM might be a viable long-term investment, though it is an investment that carries risk.
The Potential Value of XLM
Due to the reasons mentioned above, Stellar has destroyed half of its Lumens and does not plan to create more.
Even though it can make investors hesitant to invest in the token. it is imperative to recognize that the token will be scarce in the future. Needless to say, rarity increases the value of any token.
This potential increase in the value of the Lumen token can make XLM excellent crypto to buy and hold.
What do you thin? Is Stellar investable in 2022?
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