Can XLM Reach $1? All You Need to Know About XLM

Many are wondering if Stellar, the smart contracts, and tokens-enabled platform that was created back in 2014, is an interesting investment due to its low price and its usage by certain enterprise services. But it has always hovered under the dollar mark, unlike its older sibling, Ripple, even with all the regulatory buzz behind it.

Many ask if XLM’s price will ever go above that point, more now that there are many competitors the market is favoring (like BSC, Solana, and Avax). While cryptocurrency markets are volatile and uncertain, the fundamentals of each currency do matter in the long run, and we will be focusing on answering this question.

What Is XLM?

Stellar is a smart contracts-enabled cryptocurrency network (like Ethereum) that was created by Jed McCaleb after he exited Ripple, helped by Joyce Kim. McCaleb designed Stellar in the same way as XRP, and they share some similarities. But while Ripple is a more centralized system, designed with bank and remittance usage in mind, Stellar is a more decentralized network that aims to provide a more user-friendly experience.

Stellar runs its consensus protocol, denominated SCP, that runs on top of a “federated Byzantine agreement system.” This means that it uses a slice of the network to achieve consensus, instead of the whole network to construct a quorum. This makes Stellar very attractive to companies that need to run their systems, due to its light traits. This approach also makes it greener than proof of work, which needs to spend hefty amounts of energy to reach consensus.

Can XML Reach $1?

While XLM has not reached the 1-dollar price mark, it has had interesting price action since its launch. Stellar had its ATH in January 2018, according to information taken from CoinGecko, a popular cryptocurrency price site. Since then, it has lost steam due to the appearance of more modern and shinier competitors. Nonetheless, there have been interesting price appreciations in times other than when it reached its ATH.

The most recent burn of more than 50% of its supply by the Stellar Development Foundation in 2019, and the community vote to end the inflation of the currency, seem to indicate that the price is able to grow when there are movements affecting it directly. But it seems a longshot from its actual price of $0.33.

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