Stellar is the latest cryptocurrency project at quantum-ai.trading. The Stellar Lumen (XLM) supports and funds its payment network. The digital currency project has a target to link the world’s financial system, facilitating various businesses and creators to benefit from the flabbergasting speed of the network, lesser transaction charges, and extraordinary interoperability.
Overview of Stellar Lumens (XLM)
Stellar Lumens (XLM) is a cross-border transfer and payment system. This network aims to connect financial systems all around the globe. Stellar is known all around the world due to a distinct aim of uniting financial platforms and systems of all the world. To connect banks, payment systems and people with near-instant and safe transfers is why Stellar is created.
As the Internet has linked the world’s computers for the free worldwide circulation of information, Stellar has the same goal for money. To bring about this dream while maintaining a neutral stance, Stellar is not anything similar to a bank or some sort of business. Instead of all this, it is a decentralized network that is funded and backed by a non-profit organization, known as Stellar Development Foundation (SDF).
Working Tactics of Stellar Lumens (XLM)
XLM or Lumens enhances the activity of the Stellar network. This is the system developed to assist payments and currencies for cross-border, faster, and economical transactions. For instance, a random bank in Japan may utilize Stellar for money transactions or to send money to any other bank in Mexico. Stellar cryptocurrency would robotically convert the yen (currency of Japan) to XLM. Once it is converted, the payment will be sent through blockchain and reconverted XLM to pesos at the rate trending for currency exchange.
Stellar was created to work together with already existing assets and digital currencies, enabling users to develop digital representations of any asset as a Stellar token. These are then easily utilized to transact on the blockchain and are available to redeem at any time for the original asset. For instance, a stablecoin is collateralized to the U.S. dollar like USDC is issued and supplied on the network of Stellar.
Being a decentralized financial network, no system can process transactions or stop people from incorporating or exchanging into the Stellar project. The network can operate successfully even if some servers are not working.
How Do People Purchase XLM?
All interested individuals can buy, sell and receive XLM by making an account on Coinbase, on any other financial technology platform. Other than these, exchange platforms are also used for the trading of crypto assets.
Price of Lumens (XLM)
In the year 2014, Stellar gained $35 million in its first sale of its token. The supply of Stellar is administered by the non-profit foundation, Stellar Development Foundation (SDF), which is famous for navigating the development of the entire protocol. When Stellar was first started, 100 billion tokens (XLM) were developed along with the yearly increment rate of 1 percent. Since the rate of price increase has been eliminated.
In the year 2019, Stellar burned or eliminated over 50 percent of its supply and issuance which led to reducing its total market cap by 50 billion. Then prices jumped over 14 percent within hours of the notice, as all the remaining tokens of XLM in the supply became even rarer.
The price of XLM tokens hit a high of $0.86 amid the crypto bull run of the year 2017. In the resulting bear market, the price of XLM went down to the range of $0.73 in May of 2021.
Projects Built on Stellar
Well-renowned firms and enterprise companies have selected Stellar to invest and move money and access new markets. Below are some names of the companies that have decided to associate with the Stellar crypto project:
- COINQVEST
- CIRCLE
- MoneyGram
- Von der Heydt
- SECURRENCY
- ClickPesa
- SatoshiPay
- Settle
Is Stellar Different From XRP (Ripple)?
Those who have used both Stellar and XRP(Ripple) have observed some similarities among both platforms. Firstly what people have observed is both of the platforms have matching blockchain code, and they both do not allow mining. Both of the platforms depend upon a distributed ledger and offer almost zero transaction charges and speedy transactions.
The founder of Ripple as well as Stellar, McCaleb had the idea of why Ripple was accepted globally and brought the same idea with Stellar too.
Conclusion
The token of Stellar, XLM is one of the many digital assets and exchanges that are available at the moment. Due to its popularity, people get attracted towards it easily but before investing, consider reviewing the updated background and performance of Stellar.
