Stellar is the umbrella term for a blockchain network that tracks the Lumens cryptocurrency. For the purposes of this article, Stellar will refer to the currency as a whole. Among cryptocurrencies, Stellar stands out since it is run by a non-profit organization. This is not necessarily a bad thing since being grounded in a legitimate non-profit confers legitimacy on the currency itself, making it more accessible to mainstream commerce.
That being said, there are some complications to Stellar price predictions. New arrivals to the cryptocurrency market can take the shine away from Stellar. On the flip side, the dominance of Bitcoin is unlikely to be overturned any time soon, according to the Bitcoin price predictions. Those currencies typically get the most attention as well as the highest trading volumes. Here, the focus will be on educated price predictions for Stellar by end of 2018, 2020, and 2025.
General Stellar Predictions
Past price and volume trends are as follows: Stellar price was between 0.1-0.6 cents between the start of price history in August 2014 until May 2017. In May 2017, there was a sudden price jump from about 0.5 cents to 5 cents, virtually a 10-fold ROI from the highs of pre-May 2017 values and even more so if an investor bought on the dips when Stellar reached a price of 0.1-0.2 cents. There was a corresponding jump in trading volume as buyer interest inflated Stellar prices. Stellar then settled for the next few months until November 2017. At that point, the currency again experienced a price and volume boost, albeit at a gentler pace than the May event. By the end of January 2018, Stellar topped out at 89.2 cents and has been relatively flat since then, staying between 18 and 89 cents.
From this history, two facts jump out:
- Price boosts correspond mainly with volume indicative of sudden buying interest
- Stellar is relatively immune to macroeconomic events
The general price prediction is this: only increased buying interest that corresponds to volume spikes will generate significant gains.
Stellar Price Prediction for 2018
In 2018, the dominant news item so far is IBM’s interest in Stellar to facilitate cost savings and ease/transparency of certain international transactions. To catapult the currency to new heights, Stellar would need a major institutional player like a corporation and/or government to act on such news at some point. If that happens, look for the familiar volume spike and a rapid rise to new heights that plateau quickly. Speculators would be wise to lock in profit instead of waiting for the next boost since:
- past price action indicated a substantial price dip after the volume-spike trading
- Stellar may yet lose favor, and with it, virtually all its gains
Stellar Price Prediction for 2020
It is likely that Stellar will gain some recognition within legitimate trade by 2020. As such, its marketing as “currency” may be slightly more accurate than it is now. Currencies that last are not ones that fluctuate wildly relative to a basket of major established currencies such as the Yen, Dollar, and Euro. As such, if Stellar continues its path towards legitimate trade, people will need to make any sizable gains with leverage instead of direct unleveraged speculative price changes. A Stellar/USD numeric value is hazardous to guess since it would depend too much on the pace and magnitude of Stellar’s acceptance into the mainstream trade.
Stellar Price Prediction for 2025
By 2025, structural and legal changes will likely happen to Stellar. Of course, the bet is that it will retain and even enhance its blockchain foundational technology. However, other aspects of Stellar’s creation, valuation, and control may not remain the same. As mentioned, Stellar is currently generated by a non-profit organization. This makes it not quite as “decentralized” as cryptocurrencies should to be. Moreover, it is subject to political/financial influence. In turn, this could spur additional “printing” of the currency that subsequently devaluates its unit price. Remember, Bitcoin has a built-in anti-inflationary mechanism, but that need not be the case for all cryptocurrencies, especially ones controlled by a non-profit or other centralized organization.
Given the increased possibility of major changes to Stellar if it incorporates into large-scale global finance, further speculative gains are highly unlikely. Stellar may become another nearly flatly-valued version of a major currency: excellent for facilitating trade, but not a source of gains in and of itself barring exceptional expertise, luck, and leverage.
Stellar Volatility Overview
All cryptocurrencies are notorious for their volatility. In the case of Stellar, there is a pronounced pattern of flat or even negative price movement. This is until/unless sudden large-scale interest and a corresponding trading volume spike catapult the currency to new heights.
This hints at something important about Stellar price prediction: the cryptocurrency has trouble convincing investors of their intrinsic value outside of opportunistic speculation. People usually back up their investments by a process that generates wealth, such as a business. Or by utility, durability, tradition, and perception of value, such as gold. Stellar admittedly has not demonstrated any of these qualities so far. Mainstream currencies can generate wealth relative to each other via rate differences. Stellar does not have this enticement. This makes Stellar, for the moment, a roller-coaster ride. Sadly or not, it lives and dies by news of its acceptance into mainstream financial transactions.
Stellar is currently a vehicle for speculation. People should take up a Stellar price prediction with informed anticipation of news and/or developments. Pay attention to anything that furthers acceptance of the cryptocurrency into large-scale global finance. At this point, there is no other argument in favor of investing in Stellar. We encourage our readers to leave their thoughts on the subject. Keep in mind that while prices will of course change. However, the concepts in this article will retain durability as regards Stellar’s performance in the near future.
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