What Is Stellar (XLM)?
Stellar (XLM) is a peer-to-peer decentralized network created in 2014 by the Stellar Development Foundation (Stellar.org). Officially launched in 2015, it connects global financial systems, enabling low-cost, rapid transfers of value. Key features:
- Native Currency: XLM (Lumens) serves as an intermediary for operations and transaction fees
- Cross-Border Focus: Facilitates multi-currency transactions with 3-5 second settlement times
- Decentralized Exchange: Built-in order book tracks ownership of Stellar assets
- Security: Requires minimum 1 XLM wallet balance to prevent spam attacks
👉 Discover how Stellar compares to other payment networks
Who Created Stellar?
- Founders: Jed McCaleb (former Ripple CTO) and Joyce Kim (2013)
- Mission: "Unlock economic potential by making money more fluid"
- Current Role: McCaleb serves as Stellar's CTO while leading the nonprofit foundation
Stellar's Competitive Advantages
- Ultra-Low Fees: 0.00001 XLM per transaction (~$0.000002 at current prices)
- Enterprise Partnerships: IBM World Wire for institutional settlements
- Community Governance: XLM holders vote on ecosystem funding allocations
- Financial Inclusion: Targets unbanked populations in developing nations
XLM Tokenomics
| Metric | Value |
|---|---|
| Max Supply | 50 billion XLM |
| Circulating Supply | 30.94 billion |
| 2019 Supply Burn | 55.5 billion |
| Inflation Rate | Discontinued |
Network Security
The Stellar Consensus Protocol (SCP) ensures:
- Decentralized validation
- 2-5 second transaction finality
- Asymptotic security against bad actors
- Energy efficiency (no mining required)
Where to Buy XLM
Top exchanges supporting XLM trading:
- Binance
- Coinbase
- Kraken
- Huobi
👉 Compare XLM trading pairs and liquidity
Historical Price Data
| Metric | Value |
|---|---|
| All-Time High (Jan 2018) | $0.9381 |
| Current Price (July 2025) | $0.2379 (74.6%↓) |
| All-Time Low | $0.0012271 |
Market Performance
- Market Cap: $7.36 billion (#23 ranking)
- 30-Day Volatility: 18.7%
- Institutional Adoption: Growing DeFi and CBDC pilot participation
FAQ: Stellar (XLM) Essentials
Q: Is Stellar better than Ripple (XRP)?
A: While both facilitate cross-border payments, Stellar focuses on individual users and microtransactions, whereas Ripple targets institutional settlements.
Q: How does Stellar prevent inflation?
A: The network discontinued its 1% annual inflation mechanism in 2019 and maintains fixed supply through periodic burns.
Q: Can I earn yield on XLM holdings?
A: Yes, through staking on supported wallets or participating in Stellar-based DeFi protocols.
Q: What's the minimum XLM wallet balance?
A: 1 XLM (~$0.24) to maintain active status and prevent spam accounts.
Q: How does Stellar handle regulatory compliance?
A: The protocol supports optional KYC/AML through "Anchors" (regulated financial institutions).
Q: What's next for Stellar development?
A: Upgrades include improved smart contract capabilities and interoperability with Ethereum Virtual Machine.
Investment Considerations
While XLM shows strong fundamentals with:
- Real-world payment utility
- Enterprise adoption
- Active developer community
Potential investors should note:
- Competition from CBDCs and stablecoins
- Regulatory uncertainty for cross-border crypto
- Market correlation with Bitcoin trends
Always conduct independent research before investing in cryptocurrencies.
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