Stellar Lumen (XLM) Price Prediction 2025

Founded in 2014 by Jed McCaleb, one of Ripple’s co-founders, together with the Stellar Development Foundation (SDF), the Stellar network is an open-source blockchain platform designed to enable seamless, efficient, and cost-effective interaction between the world’s financial systems and their currencies on a single network. The Stellar network operates through a decentralized system of validators, similar to nodes of other blockchains, that reach consensus on transactions. These validators are trusted by stakeholders, including other validators and XLM holders, making secure and fast transaction processing possible without central control.

While Stellar uses the same blockchain technology as Bitcoin and Ethereum, it stands out with its unique consensus proof mechanism. This design makes the network faster, cheaper, and significantly more energy efficient than many other blockchains.

The Stellar Development Foundation is a non-profit organization that drives the development and growth of the network. The SDF shapes the strategic direction of the network, provides funding, facilitates partnerships, promotes the adoption of Stellar blockchain technology, and creates open-source tools for developers to use to expand the ecosystem.

The Stellar network supports the digital representation of any currency, but it also has its own token, Lumens (XLM), which plays a key role. Each account requires a small amount of Lumens to operate. Unlike other blockchain tokens, Lumens are not mined or rewarded. Initially, 100 billion Lumens were created with an annual inflation of 1%. However, this inflation was abolished by a community vote in 2019, reducing the total supply to around 50 billion Lumens, and no new tokens will be created.

20 billion of these are in circulation, and around 30 billion are held by the Stellar Development Foundation (SDF) for network development and will be gradually released to the market. Stellar has over 7.5 million accounts that use Lumens for minimum balance requirements and transaction fees.

Stellar and Ripple aim to provide fast, secure, and low-cost cross-border transactions, but they serve different markets. Ripple's XRP, backed by a private company, is primarily aimed at banks and financial institutions, and offers an alternative to the SWIFT system for international transfers. In contrast, Stellar's XLM is decentralized and focuses on financial inclusion for individuals and small businesses, particularly in developing regions. Stellar operates as a non-profit platform dedicated to empowering users rather than making a profit. Analysts suggest that XRP could retest its 2018 peak of $3.41 if historical patterns repeat themselves, with Fibonacci extensions predicting potential highs of $13.93, $18, or even $20 in this market cycle. 

Historical data shows that when the 21 EMA crossed above the 55 EMA in 2017, XRP surged by more than 900%. A similar crossover is now forming, indicating another significant surge. Related Sun, 12/01/2024 - 19:00 XRP Price Prediction 2025 Dan Bergin In particular, Peter Brandt is forecasting a significant rally for XRP in 2025, citing a “massive spiral” pattern on his technical chart that could take prices to $24. Furthermore, the Bollinger Bands are lending support to the recent uptrend, pointing to more upside in December and January. 

XLM’s previous ATH was 0.537585 on January 1, 2018, while the recent local high of 0.5255 on November 1, 2024 was quite close. Source: TradingView How high can XLM go in 2025? As 2025 begins, Stellar will be in a much stronger position than it was a year ago. Following a massive 600% rally in November 2024, Stellar’s ​​price has consolidated within a symmetrical triangle pattern, trading around $0.47, and maintains a bullish structure above the 50 EMA. The Stellar ecosystem is showing promising growth, approaching 28 million users, 30 billion XLM in circulation and 55.44 billion tokens burned, highlighting the token’s increasing scarcity, which could boost its long-term value. 

The key resistance levels of $0.50 and $0.55 are crucial for confirming a potential breakout. Source: TradingView A break above $0.50 could lead to an aggressive rally, especially as investor confidence grows with these positive figures. On the hourly chart, XLM is testing local resistance at $0.48. While volatility appears to be limited in the short term, a break around $0.45 could suggest a price target around $1.0566, based on the pattern's height of approximately 132%. Stellar could reach this soon if the bullish trend continues