Despite being one of the oldest cryptocurrencies in existence, Stellar is still going strong. It has a wide variety of applications, it’s backed by a powerful non-profit organization, even when crypto prices today keep rising. Its platform is also set to add support for smart contracts in the near future.
What is Stellar XLM?
The Stellar platform is a blockchain-based payment technology that has made its way into the top 10 cryptocurrencies by market cap. Its main goal is to connect banks, payments systems, and people to facilitate cross-asset transfers of value around the world. Stellar has been praised by the cryptocurrency community for its low transaction costs, high transaction speeds, and decentralized network.
The Stellar Consensus Protocol (SCP) makes sure that all the nodes in the Stellar Network reach consensus about the state of the network. This mechanism is crucial for ensuring that all operations performed within the network are valid and approved by participants.
Stellar XLM is a cryptocurrency that has recently increased in popularity. XLM price has risen from $0.20 per XLM to over $0.90 per XLM, and some experts are saying it will continue to climb. As with any investment, there are some risks associated with buying into Stellar, but those risks might be worth taking.
Stellar XLM Market Performance
As a result of stellar XLM market performance, the value of XLM coin has soared.
The price of Stellar Lumens (XLM) has been on the rise since January 2014 and the digital currency is now ranked sixth in terms of market cap at close to $4 billion. The Stellar network has also processed more than 1 million transactions across various markets, according to the Stellar blog.
Since its creation, Stellar has focused on increasing access to low-cost financial services for individuals in developing nations. Its most recent partnership is with Mobius Network, a blockchain-based payments system that allows users to send payments worldwide in multiple different currencies.
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Stellar XLM Potential Worth
Stellar (XLM) is the 10th largest cryptocurrency by market capitalization as of November 30, 2018. It has a circulating supply of 19,236,894,927 XLM and a total supply of 103,062,380,191 XLM. Stellar is currently trading at $0.1552 per XLM and has a market cap of $2.5 billion.
This is a bit difficult to fully grasp because there are no examples of currencies with such a large number of units that have any real world application to compare it to, but remember that the overall value is still only around $2.5 billion. Even at this level, it’s easy to imagine how much higher this could go by 2022.
When you buy XLM today, it’s not exactly like you’re buying shares in a company. For one thing, there is no central authority as with a company. Instead, thousands of independent servers run the Stellar network. As a result, you’re buying into the network itself: its potential value is determined by how this network manages to perform in the future.
Stellar Lumens
Stellar lumens, or XLM, is a cryptocurrency designed to function as a combination of digital cash and the Internet of Things. Its creators wanted to design a cryptocurrency that could hold its own next to the likes of Bitcoin and Ethereum in terms of security, speed, and scalability.
In this sense, XLM has been deemed a success: it’s one of the 7 cryptocurrencies in the world with an XLM/USD exchange rate over 1 cent—and it achieved this goal less than two years after its creation. Stellar was also designed with an eye towards being easy to integrate into other systems—its blockchain-based technology is compatible with other blockchain networks.
For those who don’t want to go through the trouble of buying and trading their own cryptos, some online exchanges allow people to buy and sell XLM using fiat currency instead—in much the same way that you can use your regular bank account to buy and sell stocks in real life.
What Sets Stellar Apart?
Stellar is not just another crypto. Unlike other cryptos, Stellar is a platform that offers a network of decentralized servers (nodes). The servers on this network provide a variety of functions to the users.
First off, Stellar allows anyone with lumens to make a transaction. This means that you don’t have to exchange your crypto for fiat currency before making a purchase; you can use your lumen for the transaction and then change it back into crypto when you’re done.
Stellar also has applications for businesses to accept payment in any currency they want, even if it wasn’t originally offered on the platform. This provides some benefits over Bitcoin, which only processes transactions in bitcoin.
Another benefit is that Stellar’s transaction fees are only .00001 lumens—no one wants to spend .0001 BTC or .01 ETH on a transaction fee! Lastly, Stellar has a built-in currency exchange feature called Stellarterm (outlined in their whitepaper).
Final Thoughts
At the end of the day, Stellar’s ability to take on other cryptocurrencies by providing faster transactions and lower fees is what will make it a highly sought-after coin in the coming years.
No matter how great a design other coins have or how advanced their technology is, these coins’ value will fade away compared to Stellar XLM and its potential. Investors are already looking beyond other currencies, which means Stellar’s future is looking very bright indeed.
