Now that everybody and their uncle is talking about cryptocurrency, folks are starting to look to altcoins like Stellar Lumens (CCC:XLM-USD) instead of solely focusing on Bitcoin (CCC:BTC-USD). Week after week, we can see the price and popularity of XLM rising steadily.
And yet, Stellar Lumens has yet to achieve the brand-name recognition of Bitcoin — or even of the much-hyped Dogecoin (CCC:DOGE-USD), for that matter.
Thus, relatively speaking, Stellar Lumens remains an under-the-radar up-and-comer. That’s actually a good thing for traders looking to find the next breakout star in the crypto-verse. And indeed, that breakout may already be in progress.
Social media commentators want to see XLM hit the all-important $1 price level. Could it get there soon? Will it get there at all? These are the billion-dollar questions, so let’s jump right in.
A Closer Look at the Stellar Lumens Price
Make no mistake about it: Stellar Lumens is a fast mover, even by cryptocurrency market standards. Perhaps that’s a function of XLM’s low price.
If you can believe it, Stellar Lumens’ 52-week low is around three cents. There’s a pretty good chance that we’ll never see that price again. Even at the end of 2020, XLM had already run up to 12 cents.
Yet, that was just the beginning of the story. Amazingly, Stellar Lumens managed to reach 34 cents in January, followed by a 52-week high of around 60 cents on Feb. 13.
Sure, this run-up is impressive. But then, history shows that Stellar Lumens could go much higher. Remember, the price came fairly close to $1 for a brief time in January of 2018.
Therefore, $1 is not a pipe dream for the Stellar Lumens bulls. The old saying, “Be right and sit tight,” could pay off handsomely for XLM holders in 2021.
The People’s Money
For consumers who are sick and tired of watching their dollars deteriorate in value over time, cryptocurrency offers an anti-inflationary refuge.
Which crypto coin deserves to be called “the people’s money” is up for debate. However, an argument could be made that Stellar Lumens should have that title.
For one thing, it’s quite affordable on a per-coin basis. Plus, XLM is designed to help individuals transfer money.
That’s a major part of XLM’s appeal: it’s ideally suited for people with small accounts who want to transfer funds across borders without having to pay hefty fees.
On top of that, the Stellar Lumens network makes it quite convenient and cost-efficient to convert from one currency to another. That essential feature isn’t built into some other cryptocurrencies.
A Top-10 Contender
Furthermore, as InvestorPlace contributor Chris Markoch explains better than I ever could, transactions can be relatively speedy with XLM:
“Stellar is not a proof of work (PoW) coin like Bitcoin. Instead of using miners, transactions are settled within 2-5 seconds through a method known as consensus. Instead of using miners to validate the transaction, the consensus method uses a series of servers that sync with each other for verification.”
Quite possibly, these and other considerations helped to propel Stellar Lumens into the top 10 list of crypto coins, as measured by market capitalization.
A major contributing factor seems to be the Ukrainian government’s agreement with the Stellar Development Foundation to develop a new digital asset ecosystem.
This collaboration could even result in a central bank digital currency. I wouldn’t consider the Ukrainian development to be the only reason to invest in XLM, but it certainly doesn’t hurt.
The Bottom Line
We could debate all day long about whether Stellar Lumens deserves to be called “the people’s money.”
But what’s beyond debate is the impressive bull run in XLM. Given the current trajectory of Stellar Lumens, a $1 price target isn’t incredible – just inevitable.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.