The value of a digital currency is determined by several factors, and in this article are some of the vital factors that play a role in the value of Stellar Lumens as well as its price prediction of $4 by the end of this year.
To assess the future potential and present strength of digital currencies, certain criteria are put into consideration, including scalability and transaction costs, intrinsic value and underlying tech, and the development team and leadership of the digital currency.
When assessing the intrinsic value of a digital currency, the volumes and uses are the best reflection of the present and forecasted intrinsic value. The above-mentioned projects are key to increasing the adoption and use of Stellar Lumens, hence increasing the value of the coin over time.
The vital keys to continuous adoption are speed, scalability, and cost of transactions. These are the most important factors investors look out for.
Development Team and Leadership
Stellar Lumens is founded by a respected figure in the crypto sphere – Jed McCaleb, and it has since been backed by a rising star in Silicon Valley – Stripe. Stellar Lumens have a lot of partnerships and the development team has built a very strong network.
Cost of Transactions and Scalability
Stellar Lumens can process up to one thousand operations per second, and the consensus protocol of the Stellar is safe.
Stellar Lumens Price Prediction 2018
Stellar Lumens price action is very strong. There has been a consolidation accompanied by a solid upside trend. At the moment, the value of the Stellar Lumens against the USD is breaking out from the Bull flag in the daily chart of the digital currency.
For a long-term perspective, it is very much likely that the value of Stellar Lumens (XLM) will get to $4 by the end of this year provided the team behind Stellar continues to deliver on their promises, commitments, and no major security issues in their code.