Stellar is an open source protocol for value exchange, which was introduced in 2014 by American programmer Jeb McCaleb. It was created with the intent of extending financial services to the unbanked through the use of Stellar Lumens tokens (XLM) –the cryptocurrency associated with the protocol.
Readers may recall that McCaleb is the man responsible for creating the eDonkey network and the cryptocurrency Ripple (XRP). Unlike his previous crypto creation, Ripple, which markets itself as a solution for banks – Stellar promotes itself as a solution for the people.
As financial analyst, Palwasha Saaim put it,
“Stellar’s aim is to make the flow of funds cheap, fast, and safe for the underprivileged—for instance, millions of people living in third-world countries who can’t afford high banking fees. Stellar will allow them to move funds for only a small fraction of a penny.”
Stellar made headlines last October when they announced their partnership with tech giant IBM – who plans on creating an affordable cross-border payment platform using the blockchain-based technology.
This partnership is just one of the many reasons that some crypto analysts believe the Lumens token is in for a “stellar” (pun intended) 2018.
At press time, XLM is the eighth most valuable cryptocurency in terms of market cap, with single tokens trading for around $0.20. While down significantly from its high of $0.91 in January, there are still several analysts who believe that Stellar is going to get its groove back in the months ahead.
Note: This article is not intended to be investment advice. Readers are strongly encouraged to do their own research before investing in any cryptocurrency.
Alisa Gus is the CEO of Wishknish – “a decentralized network of social marketplace communities (“Storefronts”) focused around specific projects, products, social causes, political movements, etc.” She made headlines last March by predicting that the price of XLM may increase by as much as 275% by the end of 2018. To give some perspective, tokens were going for around $0.28 at the time of her forecast.
More specifically, Gus predicted that Stellar Lumens tokens will be trading at around $1 a piece, by December 31, 2018.
In her own words,
“ I think it’s making all the right moves right now, with acceptance of Lightning Network, etc. Its current focus on developing markets in addition to its Asian positioning are all making me quite excited for its prospects.”
Crypto Gazette author Ulysses Smith has written over 70 articles covering a variety of altcoins. He recently published a piece comparing both Stellar and Ripple – which offered a price forecast for the latter.
Smith is quite bullish on XLM and in his article points out several reasons as to why we believes, at present, “Lumens are among the brightest stars on the market.”
He feels that Stellar’s relationship with IBM is a major plus for the altcoin. The tech leader recently announced that they were testing the Stellar network, in hopes of using it for cross-border payments in several countries and in different currencies around the world.
“easy to deploy framework for simple, smart contracts, ideally putting it in line for a greater adoption as its value grows.”
Smith concluded that,
“the use of Lightning Network to improve speed and scalability will further make it suitable for cross-border payments. With a market cap of over $3.7 billion and a circuiting supply of 18,550,952,162 XLM, the next bullish run could see Stellar (XLM) go to $0.50 as it inches closer to the 2018 prediction of $1.”
Lombard Financial Research Analyst and Profit Confidential author Palwasha Saaim has been featured in some of our past price prediction articles. However, she is particularly bullish on Stellar Lumens.
Since Stellar is decentralized technology designed for moving funds across borders – Saaim has called it, “the blockchain equivalent of SWIFT.” For those unfamiliar, SWIFT (Society for Worldwide Interbank Financial Telecommunication) is the platform used by most of the world’s banks for international money transfers. If these banks decided to adopt Stellar for similar use, it could mean big things for the XLM token.
“While I’m also bullish on Ripple, if I were to make a choice between Ripple and Stellar, I’d pick the latter. At this point in time, Stellar’s growth potential seems tremendous as new projects join Stellar and its partnership with IBM materializes.”
As forecast go, Saaim has previously written,
“I’m seeing XLM crossing the $1.00 mark soon. I forecast Stellar Lumens to be trading in the range of $1.00 to $1.25 through the latter half of the year.”
For more awesome articles by Jacques Martin, check ’em out here! For other price prediction articles we’ve published, check out our ones for Ether, Bitcoin, Ripple, Dash, NEO, NEM, Cardano, Monero, Bitcoin Cash, and Litecoin!