Popular crypto commentary and market analysis show Coin Bureau has issued a prediction for the price of cryptocurrency Stellar Lumens ($XLM) in 2022.

Speaking in a recent YouTube episode, Coin Bureau’s host “Guy” told followers that $XLM’s price underperformed this year relative to other cryptoassets, despite nearly doubling in value. 

Guy belioeves that the sell pressure of the Stellar Development Foundation (SDF) is mainly responsible for the lackluster price performance. According to the show’s host, SDF, a non-profit organization dedicated to developing and growing the Stellar network, has only received $3 million since its inception, forcing the foundation to sell $XLM as a way to raise funds. 

While Guy applauded SDF for its transparency — listing its $XLM sales on the mandate page — he noted that the foundation sold 3 billion $XLM in 2021. 

As reported by The Daily Hodl, Guy stated:

What’s more is that a paragraph at the end of the mandate notes, ‘as we said when we first announced this framework in November 2019, we intend to use or disperse most of these Lumens within 10 years, ideally sooner.’ In other words, the sell pressure isn’t going to stop any time soon. 

Guy highlighted the lack of demand in conjunction with the SDF’s selling pressure as a major hurdle for Stellar’s price. He claimed that institutional investors were shying away from $XLM due to its similarities to $XRP, which the U.S. Securities and Exchange Commission alleges is a non-registered security.

Despite painting doom and gloom for Stellar, Guy noted that the SDF could leverage its 2018 partnership with MoneyGram, leading the potential for a “pretty bullish picture” for $XLM in 2022. Coin Bureau’s host predicted $XLM could re-test early 2018 price highs, in the event that the partnership pans out. 

Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

Image Credit

Photo by user “derwiki” via Pixabay.com