Having remained in the top 20 by market capitalization, the price of Stellar Lumens now sits above $0.50, but what is the price prediction for XLM?
Looking at the chart, Stellar’s price is under pressure, with major pumps and dumps that have moved the price bar between lows of $0.40 and highs of $0.66 since early April 2021.
In these early days of May 2021, however, we can see that XLM’s price is sitting at $0.50.
We are still far from its ATH All Time High or all-time high of $0.70 reached in January 2018, during the first bull run in the history of Bitcoin and the entire crypto world.
This means that, unlike traditional crypto assets such as BTC and ETH that have reached (and continue to exceed) new ATHs since the beginning of this 2021, XLM has failed to follow the same timing, only now registering a “supported” bullish trend.
Apart from the improvements of the project itself that remain updated over time, Stellar may have slowed down due to the rise of other tokens belonging to the DeFi or Decentralized Finance world.
DeFi’s influence on Stellar’s price prediction
Among the latest news is that Swiss Crypto Bank SEBA has just recently declared its intention to add more DeFi tokens to its crypto basket. Specifically, these include UNI from Uniswap, SNX from Synthetix and YFI from Yearn.Finance.
SEBA Bank is a FINMA-licensed Swiss bank that provides a seamless, secure and easy-to-use bridge between digital and traditional assets. The new tokens therefore join those already handled by the Bank which are Bitcoin (BTC), Stellar Lumens (XLM), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC) and USDC.
The continuous expansion of the world of DeFi is also visible in terms of market capitalization. For example, UNI has a market cap of $22 billion, compared to XLM’s $12 billion.
This puts pressure on the price of XLM which, in any case, like the other historic crypto assets such as Litecoin (LTC), Cardano (ADA) and Ripple (XRP) continues to remain valid and in demand in the market, even if it is a little penalized.
In fact, another important factor is the rise of blockchains that create virtual machines, such as Ethereum (ETH), but also Binance Coin (BNB), which with the Binance Smart Chain has opened up a market in DeFi.
In addition, the world of NFTs or Non-Fungible Tokens has also caught on, for example involving Cardano in issuing new collectible tokens.
The price outlook for XLM could remain bullish, considering its use and demand in the market, although the rise of crypto competitors and new market developments are slowing its position.
The post Stellar Lumens at $0.50: price predictions for XLM appeared first on The Cryptonomist.