What would it take for Stellar's XLM to make you a millionaire?
Join us as we embark on a thought experiment
charting the potential for XLM in the next crypto bull run.
Let's get it!
Welcome to BitBoy Crypto!
My name is Ben.
And in this video, we're going to blast off with some Stellar moon math
to estimate how much XLM you would need to hold
in order to become a millionaire in the next bull run.
But before I go into that,
go ahead and smash that like button and subscribe to the channel
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Alright. Let's get into figuring out how much XLM you're going to need.
XLM hit its all-time high price around 94¢ on January 3, 2018.
In the last bull run, unlike Bitcoin and many other coins,
XLM did not double top in November of 2021,
but it put its yearly high of 79¢ in during the first run-up in May.
So the reason it wasn't able to put it in a new all-time high last bull run
is because of its supply,
which is slowly rising in a linear fashion.
With 50 billion in the total supply, back in 2018, there were only 17.8 billion coins in circulation.
In 2021, there were around 23 billion coins in circulation,
and now there's 26.8 billion, which is only 54% of its max supply.
As you can see, XLM struggles to stay above water
because the market cap has to work overtime to catch up to its growing supply.
Nowadays, XLM has been dancing around the 10¢ mark
in a very tight range for the past year.
Let's imagine that Stellar is able to return to its previous all-time high of 94¢
in the next bull run.
If you wanted to become a Stellar millionaire,
you need to hold just over a million XLM,
which would cost you a little over $100K at current prices.
If you're a Stellar bull,
then these estimates might be a bit too conservative for your taste,
so let's turn on the thrusters a bit.
It's not a great sign that XLM never revisited its all-time high in the last bull market,
but there has been developments that could make it much stronger in the next cycle.
Stellar has partnered with the massive fintech company MoneyGram
to help them with their cross-border payment solutions.
Hmmm. That sounds like a familiar partnership
if you're in the XRP Army.
In addition to funding development on Stellar,
MoneyGram also uses Stellar blockchain to help users easily trade their local currency for USDC.
Last month, Stellar announced a new integration with Franklin OnChain US Government Money Fund,
a massive US-registered fund with over $270 million in assets under management.
The fund will be using the Stellar blockchain
to maintain official records of the ownership of shares in the fund.
Stellar says that it's the first public blockchain to host this kind of service
for a US-registered fund.
If these bullish catalysts stack up, it could actually be possible
for Stellar to far exceed its previous all-time high
and reach as high as $1 or $2 or even higher.
But we would need to see a mega rally in the entire crypto market
for something like this to happen.
And, of course, a special thanks to our sponsor Stake
for sponsoring this video and our entire channel.
We love them.
Okay. Back to it.
Let's say that Stellar manages to double its all-time high reaching $2.
If that happened, you'll need 500,000 XLM to become a millionaire.
This sets you back about $50,000 at today's prices.
Maybe that's not enough for you.
Maybe you're a mega Stellar bull
and you think that it can get as high as $5 per XLM.
In this case, you'd only need 200,000 XLM, costing you $20,000 at today's prices.
Realistically, though,
I'm not confident that we will see prices this high in the next few years.
I remember how high we thought things were going to blast off to during the last cycle
and ended up being a bit tamer than we expected, to say the least,
so I'm keeping that in mind for my predictions this time around.
The average person doesn't have tens of thousands of dollars sitting around,
but even if you're on a budget, like most retail investors,
you can still put smaller amounts of money in and see big returns.
So let's say you can only put in $1,000 at current prices.
This would give you around 10,000 XLM.
If Stellar does reach a $2 mark,
that's potential $20,000 return on your investment.
Not quite a million,
but still not bad and potentially life-changing for some people.
Let's also take a minute to look at the power of dollar-cost averaging,
which is buying a set amount on a regular basis or regularly buying dips.
Stellar has danced around the 10¢ line for almost a year now,
which makes this math pretty easy.
Let's imagine that the price stays relatively stable
while you were dollar-cost averaging over the next year
through the end of the bear market and the beginning of the bull market.
If you buy $100 worth of XLM every month for the next year
in an average price around 10¢ per Stellar,
you'd accumulate approximately 12,000 XLM.
If XLM starts to take off during the next bull cycle
and reaches $2 in a few years,
your $1,200 investment will potentially be worth $24,000
depending on how much the price fluctuated
and whether or not it started to take off by the time you were finished buying.
Either way, not a bad return for just a few bucks a week.
Stellar has some headwinds to come,
but if you're overly bullish on this crypto project
that has a proven track record and continues to develop during the bull and bear markets,
then Stellar might make your crypto dreams go to the stars or maybe even the moon.
That's all I got.
Be blessed.
BitBoy out.