Stellar Lumens has been around for a while. Apart from its plentiful supply that forces its price to remain below a dollar, Stellar has some pretty decent fundamentals and technical. We will take a look at the chances of Stellar Lumens (XLM) hitting $5. Let’s begin.
What is Stellar Lumens (XLM)
Stellar Lumens (usually known as just ‘Stellar’) is a blockchain that claims to connect bank payment systems and people. It promises to integrate systems to move money quickly and reliably at very, very low costs.
Lumens (XLM) are the native assets of the stellar network. They are built directly into the network and contribute to the quick transaction of money worldwide through the Stellar Lumens platform.
Stellar Lumens (XLM) Tokenomics
In 2014, the Stellar network was launched with 50 billion Stellar tokens (XLM) (Stellar was the name of XLM native asset then). In 2015, after a network upgrade, the name of the native asset changed to Lumens (XLM).
Currently, XLM is rank 25 on CoinGecko and sits at $0.334 per coin (as of the time of writing). Out of the 100 billion XLM tokens, approximately 23 billion are in circulation.
Stellar Lumens (XLM) Fundamentals
On February 2, 2021, Stellar Lumens announced that its integration with USDC was now live. Since its inception, USDC has grown to be one of the most trusted stable coins in the crypto industry, especially on the Ethereum network. However, with this integration, users will also be able to transact USDC on Stellar. Before XLM, Ripple XRP used to take all the glory when it came to which crypto-project was working with banks and governments.
Can Stellar Lumens (XLM) Reach $5?
On January 5, 2021, XLM gained 30% to reach a high of $1.76. The current $0.33 price is a 31.9% increase over the last seven days. Stellar is proving to be a formidable competitor to XRP. Between the solid fundamentals and the bull market currently on fire, Stellar Lumens has a chance of reaching $5. However, the token supply is a limiting factor.
Having a 23 billion circulating supply means a $100 billion valuation at $5 per coin. This could drive XLM to be the third-largest cryptocurrency in the world.
Despite this beautiful scenario, projects need to have strong fundamentals to maintain high market cap rankings. Because of the bad tokenomics, and a fairly quiet dev team, XLM might not reach $5.
According to Long Forecast, not even in the next five years is there a possibility of XLM reaching $5. On the other hand, the Wallet Investor sees XLM gaining to 63 cents in the next year and $1.61 in the next five years.
Conclusion
Fundamentally, Stellar is a solid project. No wonder it has remained in the top 30 cryptocurrencies by market cap for so long. However, technically, it is difficult for XLM to go up in price, especially to $5. Considering all that, investing in XLM is profitable, albeit not that much.