In the current crypto environment, the top 50 coins by market cap represent a solid investment for the near future. Stellar (XLM) has been hovering in the top 20 for many years now, proving its worth in this market by longevity and solid fundamental value.
That said, having a good source of information to detect the best times when to sell or buy XLM tokens is an invaluable resource. In this article, we provide you with an accurate XLM price prediction 2025. To achieve this, we will take a closer look at the factors that influence the price of XLM tokens and perform a historical price analysis that can help us forecast future price movements.
Finally, we will compile these findings with some experts’ opinions from around the internet to provide you with a ballpark of price action for the next 3 years. Let’s get started.
Factors That Influence XLM Price
To understand what makes the price of XLM tokens go up or down, we first need to talk about some fundamentals of the Stellar blockchain. Stellar is a digital payment network, created with the goal to provide cheap transactions and ultra-fast cross-border payments. It closely resembles Ripple, with the difference that it’s not designed for financial institutions but for retail investors.
So, in a nutshell, XLM tokens are directly linked to the demand of the services their blockchain provides. As more people require XLM tokens for transactions, the higher the price goes. This means that with time and mass adoption of cryptocurrencies, networks like Stellar should see their value increase exponentially.
Another factor that is essential in price discovery is the total supply of XLM tokens on the market. Stellar has a maximum supply of 50 billion XLM tokens, and half of them are already in circulation. The Stellar foundation burned half of its supply in 2019 (55 billion tokens) and voted in a yearly inflation rate of 1%. This immediately had a positive price impact on the price (+18%), so we can conclude that variation of the total supply is an important factor to look for.
XLM’s Price History
With this in mind, let’s have a look at XLM’s price history more in detail. This could help you acquire some hints as to when and whether the price might become bullish or bearish. Of course, these types of price predictions are essential when trading or making an XLM to THETA swap, for instance.
Crypto enthusiasts consider Stellar to be one of the veterans in the crypto space. It was released way back in 2014, having almost a decade of price action under its belt. When it hit the markets, XLM was worth around $0.0025. During the bear market of 2015-2016, the price never really made any significant fluctuations and trended between $0.0015 and $0.0030.
However, once the bull market in 2017 entered full swing, XLM prices skyrocketed. In the first half of 2017, XLM tokens reached a price of $0.05. However, it was the peak that really mattered, as XLM reached a new all-time high of $0.9, almost getting to the dollar mark.
The bear market that ensued hurt the crypto quite considerably and brought prices as low as $0.04 by the end of 2019. This 95% price decrease was one of the harshest in the entire crypto market.
However, XLM entered a constant growth that began in 2020 and reached another peak in May 2021. The price reached a 3-year high of $0.7, getting close to the previous ATH. That said, the price has been in retracement ever since, and the coin is now trading around $0.3 per XLM.
XLM Price Prediction 2021
To provide you with a price prediction for the end of the current year, we gathered some opinions from experts around the internet.
- WalletInvestor puts XLM at around $0.35 for the end of 2021
- Trading Beasts has the same opinion — around $0.35 per token.
But what about long-term price action?
Future Price of Stellar Lumens in 2025
Once again, we have gathered some opinions to see whether our analysis of XLM for 2025 was correct.
- WalletInvestor places the token at around $1.4 for 2025, giving a conservative bullish prognosis.
- The Trading Beasts website remains quite bearish on XLM and provides a maximum price of $0.5 per token.
This leads us to our conclusion of this Stellar price prediction for 2025.
On a Final Note
Stellar remains a popular and promising payment network that could see some increased usage in the future. However, with competitors releasing scaling solutions and new, better Layer 1 technology emerging, this network will have a lot of work to do to remain competitive. That said, currently, the price is quite cheap, considering Stellar could regain its previous all-time high and even race above it in the next year.