One of cryptocurrency’s most elementary use cases is in escaping the wire transfer. With the hefty fees imposed by big banking institutions, it’s quite a hassle to move money internationally. As a result, several major blockchain networks have created a decentralized workaround to escape the headache. It’s a fast-growing industry, but it has unfortunately seen impedance as the largest network of this kind faces legal troubles. The Stellar (CCC:XLM-USD) network is seeking to spur that growth on a broad scale. A new partnership is helping it to achieve this goal, and the Lumen coin is benefiting from the announcement. Now, investors are hoping for some bullish Stellar Lumens price predictions as they look to the future.
Stellar began in 2014 as a way to help connect the unbanked through a decentralized platform for finance. Since then, its goals have shifted toward making connection between financial institutions as seamless as possible through the blockchain. Its Lumen coin is the fuel to this trade, allowing institutions to send fiat between one another; through this, they avoid having to deal with the red tape of wire transfers.
The network is still honing in on this effort, but today it is turning back to helping the individual. The network’s partnership with MoneyGram (NASDAQ:MGI) is helping individuals escape the same red tape as financial institutions by allowing international transfers on the blockchain.
Stellar and MoneyGram’s partnership will be fueled by the stablecoin USD Coin (CCC:USDC-USD), one of the largest USD-pegged stablecoins available. The rollout, according to CoinDesk, will be a gradual one, with a pilot introduced in Q4 before a full launch in early 2022 for Stellar users.
Stellar Lumens Price Predictions Become a Point of Interest After Partnership
The deal is huge for Stellar, and it comes at an interesting time for this sector of the blockchain market. Stellar’s biggest competition in this space is Ripple (CCC:XRP-USD), which represents one of the top 10 largest cryptos by market capitalization. Unfortunately for Ripple, it’s been embroiled with a venomous lawsuit involving the Securities and Exchange Commission (SEC).
The lawsuit is carrying on since December of 2020, and it has kept XRP from listing on U.S. crypto exchanges. It also caused MoneyGram to cut ties with Ripple, who it had partnered with prior to the new Stellar partnership. This announcement by Stellar is a huge blow to Ripple, and Stellar stands to gain quite a bit of ground on the struggling XRP ledger. With that, investors are turning toward the network that’s causing waves and gaining on the news. Let’s take a look at some Stellar Lumens price predictions to see where the coin might be headed in the future:
- WalletInvestor thinks XLM stands to gain a fair bit over the next year. The site’s 12-month prediction targets a price point of 54 cents for the coin. Its value currently stands at 34 cents.
- CoinPriceForecast predicts a value of 43 cents by the year’s end.
- Gov Capital forecasts a price of 51 cents for Lumen by October of 2022.
- The Economy Forecast Agency predicts the XLM coin will be worth 51 cents at the end of December. By October of next year, it predicts a price of 56 cents.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.