Can the crypto reach $1?

   2021-09-17 11:09

THE price of cryptocurrency Stellar has soared 253% over the past year.

The cryptocoin, also known as XLM, has benefited from increased interest in cryptos this year and the search for the next Bitcoin.



XLM is described as a

1

XLM is described as a “distributed, hybrid blockchain”Credit: Alamy

Cryptocurrency prices hit record highs earlier this year amid interest from high profile individuals such as Elon Musk and more institutional investment in the sector.

The most valuable coins are Bitcoin and Ethereum but there are lots of alternatives or altcoins aiming to benefit from crypto interest.

Values can be volatile though and regulators have warned that investors could lose all their money.

We reveal price predictions for 2021 – and whether XLM could reach $1.

What is XLM?

XLM was launched in 2014 by Jed McCaleb and Joyce Kim after both left rival cryptocoin Ripple amid disagreements over the company’s direction.

It is described as a “distributed, hybrid blockchain” that lets money be moved and stored faster and at a lower cost.

The digital currency is based on tokens that are called lumens.

A lumen can be purchased on crypto exchanges such as Binance, Blockchain, eToro and CoinTiger.

One of XLM’s first partnerships included IBM which uses the XLM network to let financial firms complete transactions using its blockchain technology.

What is the XLM price?

The XLM price or the value of a lumen as of August 27 is $0.335, according to CoinMarketCap.

Its value is down 1.99% over the past 24 hours but is up 253% compared with last year when the value was at $0.096 in August 2020.

XLM hit an all-time high of $0.938 in January 2018 and the closest it has got since then was $0.796 in May 2021.

XLM price predictions for 2021

Getting beyond a $1 valuation is among the first milestones that many cryptos aim for.

A poll of 732 crypto enthusiasts on CoinMarketCap have predicted the XLM price will rise by 13.3% over the next six months.

This would give a lumen a valuation of $0.388.

5 risks of crypto investments

BELOW we round up five risks of investing in cryptocurrencies.

  • Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements. 
  • Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
  • Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market. 
  • Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.  
  • Marketing materials: Firms may overstate the returns of products or understate the risks involved.

Users of CoinPriceForecast are slightly more bullish and expect the price to hit $0.39.

Investors may have to wait a few years to get past the $1 mark though.

CoinPriceForecast users are predicting that the price will move from $0.56 to $1.38 between 2023 and 2027.

WalletInvestor forecasters expect the XLM price to hit up to $0.642 by the end of 2021 and $1.56 by August 2026.

Quinn Markwith, eToro crypto market analyst, said Stellar is becoming more popular on its trading platform.

He said: “Stellar has had a host of impressive partnerships with the likes of Stripe and IBM.

“But more recently it was reported to have been considering the idea of buying well-established online money transfer service MoneyGram.

“This could potentially open usage of the cryptoasset to a large untapped base of customers who don’t currently transfer money using a blockchain network.

“Although as of yet there is no indication of whether the deal will go ahead.”

We explain whether Ethereum could overtake Bitcoin in future.

We also reveal price predictions for 2021 for other major cryptocurrencies including Ethereum, Dogecoin and Cardano.

It comes as the values of Bitcoin and Ethereum fell in May after China announced a further crackdown on cryptocurrencies.

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