Stellar Price (XLM)

About Stellar

More often than not, you’ll see cryptocurrency buffs fixating on traditional blockchains like Bitcoin or hyping up newer ones like Solana or Avalanche. There’s nothing wrong with that – except for the fact that they overlook some real gems in that process. Take Stellar, for instance: launched over a decade ago, it still doesn’t have the same level of attention as other networks. Maybe it’s because it got caught up in the wave or because it works a little differently from the rest of the blockchain projects. 

If you’re an expert in the field, you likely already know that Stellar is designed to support low-cost, cross-border transactions. You can navigate Stellar price through the network’s open-source payment technology to make your money not only more fluid but also more accessible. 

It functions through its rare consensus mechanism, which enables almost immediate settlements without having to depend on mining that takes up too much energy. This is why Stellar is among the most eco-friendly and scalable options for cross-border finance. Considering how fast its adoption is growing these days, thanks to expanding partnerships, our Stellar price prediction will generally reflect how the broader market interprets Stellar’s success. 

This is the exact reason why Stellar is still a major solution leading the changing landscape of decentralized finance. If Stellar price is also your area of interest, then you’ll definitely benefit from taking a look at the information we’ve compiled about it in this article before you make any decisions. 

What Is Stellar Lumens (XLM)?

To quickly put it into perspective before getting into the details about Stellar and Stellar price, understand that the native cryptocurrency of this unique network’s actual name is Stellar Lumens (XLM). As we mentioned earlier, it’s specifically made to deliver hassle-free transactions between different currencies. We’ll put it like this: for quickly converting fiat and crypto assets, XLM is a bridge… and it’ll help with liquidity and curbing transfer costs. 

But there’s a big difference between Stellar Lumens XLM and other options like Ethereum or Bitcoin: even though their native coin is a direct store of value, Lumens’ role is to actually support Stellar’s overarching payment infrastructure. 

What does this mean, though? Well, in simple terms, it means that every account on the Stellar network has to possess a certain amount of XLM, which is currently as low as 1 lumen. This is to meet the minimum balance requirement and pay the transaction fees without worrying about spam, all the while cementing an efficient network. 

There’s another thing that XLM does to make cross-currency transactions a smooth process: it can perform the role of an intermediary asset when two currencies can’t exchange directly. What it does is that it basically converts between those currencies to complete the transaction, of course, at the best rate possible. 

This is why the Stellar price can fluctuate at times based on network adoption and market sentiment, even broader cryptocurrency trends. It happens especially when big partnerships, like Stellar’s collaboration with MoneyGram for blockchain-powered remittances, take place. They have a clear effect on Stellar Lumens XLM’s value. 

Who Are the Founders of Stellar Lumens (XLM)?

Stellar Lumens, similarly to most blockchain networks, was not founded from a random instance. It was the result of vision, hard work, and exhaustive research by talented experts in the fields of tech and the blockchain industry. To be more specific, it was founded by two highly influential figures who are known widely among cryptocurrency enthusiasts. It’s quite interesting to note that both of these founders are people who came from different professional backgrounds. They did, however, share the same mission… which was to completely revolutionize global access to finance. 

Stellar’s success and credibility as a long-standing network are owed predominantly to the leadership of: 

• Jed McCaleb 

Jed McCaleb is a name almost synonymous with development in the world of blockchain. It’s a well-known fact that McCaleb was already an influential figure in this area well before founding Stellar. He actually created eDonkey2000: one of the world’s first-ever peer-to-peer file sharing platforms. This is what proves his forever passion for decentralization, further supported by the reality that he also founded Mt. Gox. Now, not a lot of people know this, but Mt. Gox was once the largest Bitcoin exchange before it eventually collapsed when management changed hands. 

Moreover, McCaleb was also involved with Ripple Labs as CTO before he finally made a formal entry into the blockchain sector. But there, unfortunately, some internal disagreements about organizational goals led McCaleb to seek a new path. 

This was when, in 2014, he co-founded Stellar with the newfound goal of introducing an inclusive and decentralized financial network that was specifically built for real-world usage. Jed’s pioneering determination for low fees and global access is what precisely formed the basis of how both users and investors view the Stellar price. 

• Joyce Kim

You already know that Stellar came into existence with the efforts of two leaders. Alongside McCaleb, there was Joyce Kim, the person who brought a fresh perspective to the project when it was most in need of one. Her area of expertise was formed with her work as an attorney, as well as the co-founder of many other startups. Her mission was a humanitarian one, where her startups were focused on helping marginalized communities. 

It was all thanks to her background in activism, law, and the realm of tech startups that she was uniquely positioned to design Stellar. Thus, the blockchain network was created as a system that could serve the underserved populations of the world. 

Through Kim’s influence, Stellar became not just a technologically advanced initiative but also a socially responsible one. She was indispensable in the founding of the Stellar Development Foundation (SDF), aka the non-profit entity that looks after the Stellar network. 

Together with McCaleb, she has built Stellar Lumens into a symbol of global finance… something that the much–highlighted Stellar price still represents.

What Makes XLM Unique?

Despite popular belief, Stellar Lumens (XLM) isn’t just another cryptocurrency – it’s essentially a purpose-built asset that is meant to support easily one of the most practical blockchain networks currently available. XLM is indeed highly unique, and the traits that make it that way are an amalgamation of different real-world use cases, design principles, and its efficiency in bridging traditional cryptocurrency with decentralized tech. 

Let’s take a look at the main features that set XLM in a league of its own, shaping the movement of Stellar price in worldwide markets. 

1. Built for Cross-Border Transactions

The first feature that sets Stellar’s XLM apart from other cryptocurrencies is that it was designed to specialize in accelerating cross-border payments in a simple way. Generally speaking, you’ll find that most traditional systems depend on several intermediaries. But Stellar is unique in this area: it permits direct transfers between different currencies… and that, too, with instant transactions. 

This is the very functionality that makes Stellar the go-to solution for all types of international money transfers, especially remittance services. As you can see, when adoption grows, so does demand, which subsequently impacts Stellar price. 

2. A Bridge for Currency Functionality

If you ask about technological innovations in Stellar’s XLM, you’ll be told all about how it functions as a bridge asset through Anchors. The most interesting thing about this trait is that whenever there are two currencies that can’t find a direct trading path, XLM can come in and act as an intermediary to make the transaction successful. 

You’ll wonder, what does this function even achieve beyond just intermediation? It is actually this characteristic that guarantees liquidity and cost-effectiveness all throughout the network. This is an invaluable quality for regions dealing with volatile or underrepresented fiat currencies. 

3. Low Costs in Transactions

When you make a transaction on the Stellar network, it’ll only cost a small fraction of a cent. This makes Stellar one of the all-time most affordable blockchains to use. Not only is this low cost essential for microtransactions, but it’s also a boon for all developing countries. 

4. Highly Energy-Efficient Consensus Protocol

Stellar sets itself apart from Bitcoin and the pre-Merge Ethereum by using the Stellar Consensus Protocol (SCP), which does not use mining. What it does instead is that it makes use of a system of quorum slices in order to validate transactions. This results in lower energy usage and faster confirmations, making XLM a fantastic sustainable choice. It can, then, improve the overall investor sentiment and support the Stellar price. 

5. Real-World Partnerships

IBM, Circle, and MoneyGram are some of the several major institutions with whom Stellar has collaborated over the years. This has distinguished Stellar and XLM from purely speculative projects because these partnerships cement its legitimacy. 

How Many XLM Coins Are There In Circulation?

As you’re researching all the ABCs of the Stellar price, you also need to know how many XLM coins there are in circulation. Currently, there are approximately 20.7 billion Stellar Lumens (XLM) circulating in the market while the total fixed supply is 50 billion XLM. 

If you’re wondering when this supply cap was set in place, then the answer is the major change of protocol in Stellar in 2019. This was when the Stellar Development Foundation voted to burn 55.5 billion Lumens… the goal was to nearly halve the total supply. This move was made to make sure that there is better efficiency when it comes to resource allocation and to support long-term stability in the network. 

Stellar does not mint additional XLM, which makes it quite different from other cryptocurrencies that mine to introduce new coins into the market. SDF holds the remaining supply and releases it strategically to support the growth of the ecosystem. The fixed minimum supply system is what makes Stellar Lumens a deflationary asset, and that positively influences the Stellar price over time with increasing demand. 

How Is the XLM Network Secured?

Stellar is no exception to the basic fact that security is the foundational pillar of any blockchain network. The Stellar network provides its users with fast, secure, and decentralized transactions by using a unique consensus mechanism. This is the mechanism that has allowed Stellar to be considered a better alternative than energy-intensive proof-of-work systems like Bitcoin, and keeps eyes trained on changes in the Stellar price. 

1. Stellar Consensus Protocol (SCP)

You’ve learned by now that Stellar uses the Stellar Consensus Protocol (SCP), a groundbreaking algorithm that was developed by Stanford professor David Mazieres. It is a system unique from traditional mining-based systems as it does not rely on validators when it solves complex mathematical problems. Some standout features of the SCP for security include:

• The Federated Byzantine Agreement (FBA), according to which nodes can reach consensus through the trusted quorum slices. FBA then forms a web of trust instead of a single authority. 

• It also has low latency, meaning that consensus can be achieved within seconds and attack windows are reduced, basically making double-spending impossible. 

• Energy efficiency through the no-mining method, reducing vulnerability to attacks or centralization of hashing power. 

2. Decentralized Validator Nodes

The Stellar network is run with the help of independent validator nodes distributed all over the world. This is how this blockchain system ensures transparency, because anyone can operate a validator. It also proves how committed Stellar is to remaining resilient against centralized control. Anyone who’s familiar with the world of cryptocurrency and tech would know the benefits of decentralization: 

• Improved resistance against single-party control or censorship
• Stronger protection against any systematic failures or coordinated attacks

3. Active Monitoring by the Stellar Development Foundation

Another central role that SDF plays is in maintaining protocol integrity, where it actively monitors the network for any vulnerabilities and proposes protocol upgrades in general. It doesn’t control the network, though. 

• Bug bounty programs
• Transparent structure of governance
• Regular security audits

Stellar Lumens (XLM) Ecosystem

No cryptocurrency network can be understood if you don’t look into its complete ecosystem. In the case of the Stellar ecosystem, you’ll find that it’s a growing network of different financial institutions, fintech startups, non-profits, and, of course, blockchain developers. All these organizations work together with the common goal of building an inclusive financial infrastructure. 

1. Partnerships and Financial Institutions

Stellar developed alliances with a few powerful financial entities with the aim of integrating blockchain into traditional financial systems. Its partnership with MoneyGram is meant to promote instant or near-immediate fiat-to-crypto remittances, all over the world. 

Meanwhile, the IBM World Wire collaboration was initiated to increase possibilities for payments beyond the borders between banks, through Stellar. And another important partnership is with Circle (USDC), whose purpose is for USDC to be issued on Stellar to achieve stable and quick transactions. 

2. Asset Issuance and Tokenization

Another important aspect of Stellar’s ecosystem is its asset issuance and tokenization system, through which it allows anyone to issue digital representations of real-world assets. These assets can be anything, from stablecoins and bonds to even fiat currencies.

What this achieves is the instant settlement and low fees for users, along with built-in compliance tools for issuers. They can benefit from the interoperability between traditional and digital finance… because, after all, the more tokens and use cases built on Stellar, the stronger the network utility. A powerful network utility is a significant driver for Stellar price appreciation.

3. Developer and DApp Ecosystem

The next part is a technical versatility that helps Stellar remain competitive in the global cryptocurrency landscape – and also in attracting investors and long-term developers. As both of these audiences are crucial to the health of Stellar price, the SDA supports developers with grants, SDKs, and documentation. The end goal is to produce dApps and financial services. This specific developer ecosystem encompasses mobile wallets, lending platforms, and decentralized exchanges (DEXs). 

4. Social Impact Projects

Thanks to its humanitarian focus, Stellar has low fees and an open network. This system makes it the ideal choice for non-profits and social aid distribution, such as digital aid disbursements in underserved regions. 

Frequently Asked Questions (FAQs)