Price Predictions

Stellar Lumens(XLM)/USDT Price Prediction: 01 February 2022

Stellar Lumens(XLM)/USDT Price Prediction


Most of the blockchains work mainly on 3 major factors, high speed, scalability, and low costs. Stellar is among these blockchains which work on these factors by incentivizing a distributed network of computers to run the software. Stellar is also a sought of decentralized exchange as its ledger book has an in-built order book that keeps track of the stellar asset holdings. On the other hand, the developers are working hard to make the platform a marketplace for the assets built on its protocol. 

The Stellar is a distributed network on which Lumens crypto is being built with the ticker symbol XLM. XLM price is believed to often go hand in hand with XRP price most of the time. But one major difference is it smashed a new ATH amid the 2021 bull run which XRP failed. Woefully, ever since then XLM is experiencing extreme drain and currently testing one of the crucial support levels. 

Will XLM price slice through these levels and plunge? Let see!

Introduction to Stellar Lumens-In Brief

Jed McCaleb, the founder of Mt.Gox and co-founder of Ripple, founded the Stellar network with the former lawyer in 2014. He was the one who designed the XRP ledger and hence Stellar shares some similarities with the XRP Ledger and its token XRP. The Stellar platform intends to offer financial services to the unbanked and also it helps the financial firms to get connected through blockchain technology.

The network’s native token Lumens(XLM) acts as a bridge to offer a low-cost cross-border payment system. It empowers the whole range of operations on the network. The creation of XLM tokens is done with 1% annual inflation to address economic growth. The newly created XLM tokens are generated every week and distributed through a direct voting method. 

Additional Read: Daily Crypto News, 1st February, 2022

How Does Stellar Lumens Work?

The working of Stellar is much similar to that of XRP as the code of the XRP ledger was completely rewritten with some technical changes. The smooth functioning of the protocol is carried out through the various mechanisms mentioned below.

Stellar Consensus Protocol

The Stellar blockchain consensus algorithm is based on Federated Byzantine Agreement(FBA) called ‘Stellar Consensus Protocol(SCP)’. Here the transactions on the stellar network are added to a shared and distributed public ledger. The SCP makes the transactions much faster at affordable costs with the transaction finality time is reduced to just a few seconds. Another interesting part is, each node on the Stellar network, creates his/her mini-network called ‘Quorum Slices’ with the trusted participants.

Running A Node On Stellar

Running a node on Stellar is done using the powerhouse of the network called Stellar Core which can be customized according to the user needs. The nodes can be set up as Watchers, Archivers, Basic Validators, or Full Validators. 

Watchers can only submit transactions, while Full Validators participate in the Stellar Consensus Protocol by voting on the developments. 

Issuance of Assets

This is another important network function performed by the Stellar Anchors who are called the Gateways. They are responsible to accept deposits of currencies and assets. Further, they also need to issue new representations of these assets on the network. Further, the Anchors, hold the deposits and issue credits based on the requirement. 

Additional Read: 8 Cryptos with Low Transaction Fees

Will XLM Price Hit $5 in 2022?

The XLM price had a monstrous rally in the first half of 2021, where-in the asset ranged as high as $0.79 from the levels below $0.1. However, very quickly the asset fell into a deep bearish divergence and formed constant lower highs and lows, maintaining a descending trend. After shedding almost all the gains the XLM price is currently trading at the price which it began the trade for the year 2022, before the 2021 bull run. 

Further, the asset tried to rise again in Q4 2021, but eventually could only go halfway to its ATH and later again fell into the same bearish well. This time bears appear to be extremely powerful as after a gigantic drop recently, the buyers are only able to keep the price in range-bound and fail to uplift the price above the danger zone. 

Considering the present rally, it is quite tough for the asset to gain bullish momentum at once and ignite a huge uptrend. With a small trend reversal, the asset could initially focus on recovering the loss and try to range towards the north. A minor bull run could escort the price close to its ATH and late it may test to hit the $1 milestone. However, $5 appears to be pretty tough in 2022 but in the next 2 to 3 years the asset could absorb notable bullish momentum and try to attain these levels. 

Factors Affecting XLM Price Today

Faster Transactions at lower costs

The transactions are almost instant. Moreover, the transaction cost is also very affordable which comes to 0.00001 XLM per transaction. 

Free Start-Up & Integration Costs

Using Stellar Network is completely free. The software requirements are also licensed and it permits commercial use, modification, and/or distribution. 

Multi-Currency Transactions

Stellar’s key feature is the multicurrency transactions. The platform not only deals with crypto-asset transactions but also the Fiat currencies like USD, EUR, etc. It finds the people who wish to swap their XLM with USD, EUR, or another fiat and links them if they want to swap their fiat too. 

Multiple Applications are Offered

Stellar has built multiple applications beyond the financial markets to ensure the security of the essential operations. Some of them are Anchors in more currencies, Mobile & trading clients, API mashups, Merchant Plugins, etc. 

Where & How to buy Stellar Lumens(XLM)

Want to buy some Lumens (XLM) but confused where? You are at the right place here in CoinDCX! We are India’s most popular and trusted cryptocurrency exchange with a huge user base of more than 7.5 million. We offer multiple benefits other than hassle-free smooth trades at affordable costs. Registering with CoinDCX is extremely simple. Just follow the below-mentioned steps,

  • Download the CoinDCX App on your smartphone
  • Enter the required details
  • On verification, fund your wallet and start your trade! 

Read our recent articles: 

  1.  XRP/BTC Technical Analysis

      2. MANA/BTC Technical Analysis 

      3. SUSHI/USDT Price Prediction

Disclaimer: The above views, information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational/ educational purposes only. The content, information or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, digital assets/ cryptocurrencies or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as legal, financial, investment or tax advice by the reader. The calculations, data, risk-return formulations, performance or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.


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