Is Stellar Lumen (XLM) Set to Skyrocket in 2025? Find Out Now!

by

What is Stellar?

Established in 2014, the Stellar network was launched by Jed McCaleb, one of Ripple’s co-founders, together with the Stellar Development Foundation (SDF). This open-source blockchain system is designed to facilitate smooth, swift, and economical interoperability among various global financial systems and their currencies on a unified network.

As a researcher, I’d describe the Stellar network as a decentralized system where validators, similar to nodes in other blockchains, work together to validate transactions. These validators are trusted by various stakeholders such as fellow validators and XLM holders, which ensures secure and swift transaction processing without relying on a central authority.

Stellar, like Bitcoin and Ethereum, uses blockchain technology, but what sets it apart is its distinctive proof-of-agreement consensus method. This design leads to a faster, less costly, and notably more energy-efficient network compared to many other blockchain systems.

The charitable entity known as the Stellar Development Foundation plays a pivotal role in nurturing and advancing the Stellar network. This organization sets the strategic course, offers financial support, cultivates collaborations, advocates for the use of Stellar’s blockchain technology, and constructs open-source tools that developers can utilize to expand the ecosystem.

As an analyst, I’m tasked with outlining the strategy for SDF (the Stellar Development Foundation) that fosters the network’s growth and future prospects. This strategic plan is meticulously detailed in our annual roadmap, which is transparently shared to ensure accountability and foster trust among our community. In the same open-source spirit as the network’s code, we make it a priority to keep the public informed about our progress against this roadmap, promoting transparency and collaboration throughout the process.

What is Lumen (XLM)?

On the Stellar platform, various forms of digital money are accommodated, in addition to its own internal token, Lumen (XLM). This token, Lumen, serves a crucial purpose as every operational account requires a minimal amount of it.

Unlike other blockchain-based tokens, Lumens (XLM) were not generated through mining or rewards; instead, they were pre-created in an amount of 100 billion. There was initially a 1% yearly inflation rate for these tokens. However, this inflation was halted by a community vote in 2019, leading to a reduction in the total supply to approximately 50 billion Lumens, effectively ceasing the creation of new tokens.

20 billion of these are currently circulating, whereas approximately 30 billion remain with the Stellar Development Foundation (SDF). They plan to release this amount over time to stimulate network expansion and increase availability on the market.

Stellar boasts more than 7.5 million registered user accounts, with Lumens serving as the minimum account balance and transaction payment method.

As a crypto investor, I’ve found that the Stellar network requires a modest minimum balance of 1 lumen for each account and a nominal transaction fee of 0.00001 lumens. This way, the network remains affordable and user-friendly, while simultaneously deterring excessive or abusive activities.

XRP versus XLM

Stellar and Ripple both aim to facilitate swift, safe, and affordable international money transfers, yet they focus on distinct market segments.

As a researcher delving into the world of digital currencies, I find myself examining two key players: Ripple’s XRP and Stellar’s XLM. While both are digital assets, they cater to distinct demographics. Ripple’s XRP, backed by a private corporation, is primarily geared towards banks and financial institutions, offering an alternative to the traditional SWIFT system for international money transfers.

On the other hand, Stellar’s XLM takes a decentralized approach, focusing on financial inclusion for individuals and small businesses, particularly in underdeveloped regions. Unlike Ripple, Stellar functions as a non-profit platform, prioritizing user empowerment over profit generation.

Experts believe that if past trends continue, the price of XRP might return to its 2018 high of $3.41. However, Fibonacci analysis suggests potential peaks of $13.93, $18, or even $20 during this market cycle. Notably, in 2017, when the 21 EMA crossed above the 55 EMA, XRP skyrocketed by more than 900%. Currently, a similar crossover is emerging, indicating a potential substantial increase.

As a researcher delving into the digital currency market, I find myself intrigued by Peter Brandt’s prediction for XRP. He suggests that we might witness a significant surge in its value by 2025, primarily based on a distinct “massive coil” pattern he’s observed in its technical chart. This pattern could potentially propel the prices to reach an impressive $24. Furthermore, Bollinger Bands, a useful tool for assessing volatility and price movements, seem to be backing up this recent upward trend. These bands suggest that we may anticipate more gains for XRP in December and January.

Previously, Stellar Lumens (XLM) reached its all-time high at 0.537585 on January 1, 2018. More recently, on November 1, 2024, it almost touched a new local peak at 0.5255.

How high can XLM go in 2025?

By the start of 2025, Stellar finds itself in a noticeably stronger position compared to a year ago. After a dramatic 600% surge in November 2024, Stellar’s value has been steadily holding within a Symmetric Triangle configuration, currently hovering around $0.47 and showing a bullish trend above the 50 Exponential Moving Average (EMA).

The Stellar ecosystem is rapidly expanding, approaching 28 million users. Currently, there are about 30 billion Stellar Lumens (XLM) in circulation, while over 55 billion tokens have been burned, emphasizing the token’s dwindling supply which could potentially increase its worth in the long run. Crucial levels of resistance can be found at $0.50 and $0.55; if these levels are breached, it may signal a potential surge ahead.

Reaching beyond $0.50 might ignite a strong upward trend, considering the increasing optimism among investors due to these encouraging statistics.

As I analyze the hourly chart, Stellar (XLM) is currently testing resistance at roughly $0.48. At present, short-term price fluctuations seem contained, but a potential breakout near $0.45 could signal a bullish trend. If this pattern holds true, the price target might extend to around $1.0566, given the approximate 132% height of the pattern. Should the bullish momentum continue, Stellar may reach this projected level in the near future.

Read More

2025-01-18 21:14