Woman looking at data and Stellar logo
Source: istock, Stellar Lumens Facebook

Is Stellar Lumens Crypto a Buy as Rival Ripple (XRP) Breaks Out?

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Jul. 30 2021, Published 10:14 a.m. ET

Stellar Lumens (XLM) crypto is on the radar of many investors looking for the next cryptocurrency to explode. Stellar is a spinoff of Ripple (XRP), which has been soaring lately. What's Stellar Lumens price prediction and is it a good buy now?

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Similar to Ripple, Stellar is a payments-focused blockchain. It seeks to make international money transactions like cross-border asset trades and cash remittances fast and cheap. Lumens (XLM) is Stellar’s official token.

How many Stellar Lumens (XLM) crypto tokens are there and is the supply capped?

Some 23 billion XLM tokens are circulating in the market. The crypto’s maximum supply is capped at 50 billion tokens. Previously, Lumens crypto’s maximum supply was fixed at 100 billion tokens. Stellar used the token burn mechanism to reduce the supply.

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stellar lumens ripple
Source: Stellar Lumens Facebook, Ripple Facebook

Many investors are drawn to cryptocurrencies with capped supply because they automatically offer protection against inflation risk. Other cryptos with fixed token supply like Stellar Lumens are Ripple (XRP), Harvest Finance (FARM), Yearn Finance (YFI), and Bitcoin.

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Currently, Stellar token trades at $0.27. It has gained about 4 percent in the past week, while rival Ripple is up more than 20 percent over the same period. The current price shows XLM crypto trading 70 percent below its all-time high.

Stellar Lumens (XLM) price prediction
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Stellar Lumens (XLM) price prediction

Seeing how Ripple (XRP) is rebounding, investors are showing high interest in rival Stellar Lumens (XLM) price prediction. At the current price of $0.27, XLM crypto will need to gain 245 percent to get back to its all-time high of $0.94 reached in 2018.

If Stellar Lumens can maintain a compounded monthly growth rate of 30 percent, it could get back to its peak by the end of 2021. If Stellar Lumens maintains that rate, it could surpass $6 by July 2022. At a compounded monthly growth rate of 10 percent, Stellar Lumens' price would reach $40 by 2025.

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Is Stellar Lumens crypto a good buy now?

The pullback in XLM token's price from the peak might appeal to investors looking for a chance to buy the dip in this Ripple competitor. In November 2014, Stellar Lumens plunged to what has remained as its all-time low. Investors who bought that dip have seen their money grow more than 20,000 percent even at the currently depressed price.

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Is Stellar Lumens (XLM) crypto a good long-term investment?

Although XLM crypto is sharply off its all-time high, it still has many happy investors. For example, those who invested in Stellar Lumens at the beginning of 2021 have almost doubled their money. That is many times better than what stock investors have generated as the S&P 500 is up only 18 percent over the same period. Longtime Stellar investors are even happier. The crypto has returned more than 13,000 percent over the past five years.

There isn't a guarantee that Stellar Lumens will continue to deliver blockbuster returns. However, there's a high chance it will soar in the future. As Ripple has shown with its recent deal with SBI Remit for Japan-Philippines remittances, the demand is growing for fast and cheap international money transfer solutions.

The best way to buy Stellar Lumens (XLM) crypto

If you like Stellar Lumens crypto’s price prediction, you might want to buy the current dip in XLM token. The best places to buy XLM crypto with the U.S. dollar right now are Coinbase, Binance, Kraken, and Bitfinex.

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