The global economy has evolved over the last few decades, making our lives easier. But, moving money across borders, still remains a time-consuming and expensive process.
Various crypto projects have attempted to capture this market in the past, but only a few of them have the real deal. Ripple is one of them, attempting to be the banker's crypto, whereas Stellar is attempting to be a cryptocurrency for everyone.
What is Stellar?
Stellar is a decentralized peer-to-peer network protocol, in which users can send their money to their loved ones anywhere in the world. It is also used to send, trade, and create a digital representation of all kinds of money. It was created and launched in 2015.
the main aim was to create a network that would bring the financial systems of the world under a single network.
Like any other mainstream cryptocurrency, stellar is also a decentralized network that is spread across multiple servers. When it was launched its main goal was to boost financial inclusion but soon its priority changes to helping firms to connect through the blockchain network.
How does the Stellar network work?
Stellar was founded in 2014 by Jed McCaleb and Joyce Kim, who left Ripple in 2013, to create a new financial system and then he founded Stellar.
Jed aimed to ensure that people can move their fiat currency into crypto without any hustle and that’s why they made this nonprofit organization “Stellar Development Foundation”
Stellar has seen numerous growth streams over the years. It has the achievement to have nearly 3 million user accounts in less than a year. And over the years Stellar has developed a network of partners that includes Flutterwave, IBM, and ICICI Bank of India.
Stellar has its digital currency called Lumens, or XLM, and this coin is the foundation of the Stellar network.
What is XLM?
It is the native currency of Stellar which is available in the crypto market to trade, and besides that, it is also used to pay transaction fees on the network.
Stellar has a built-in protocol that automatically converts money sent through the Stellar network to XLM and then to the receiver's favorable coin.
For example:- if you send a payment in dollars in India, Stellar converts the payment to XLM, and the receiver can receive the payment in Indian Rupees. And the fun fact is it takes only two seconds to complete this transaction.
Just think about it, this will make it so easy for normal people to send and receive money anywhere in the world.
The history of Stellar was amusing, at the time of launch, the platform’s original currency was the Stellar. And then they changes it to Lumens, but the people still use that name for it, so don’t be confused when you see Stellar in place of Lumens. Lumens or XLP is the crypto here and Stellar is the platform.
Is XLM a good investment?
Despite the increase in value of XLM, Stellar has destroyed half of its Lumens and has no plans to create more. This may call into question the coin's investment potential, but it is important to remember that the coin will be scarce in the future. History tells us that rarity raises the value of any item, as should be the case with the remaining Lumens. Stellar is an excellent asset to buy and hold due to the potential for increased value.
What is the value of XLM?
The overall supply of the XLM cryptocurrency is 50 billion XLM and its supply in circulation is 23 billion XLM at the time of writing the lowest price of stellar was seen at starting of 2017 which was around 0.003$, and the highest price was observed in March 2018 which was 0.89$.
Each XML is worth around 0.32$ at the time of writing and now it is in the #25 position in the top 100 cryptocurrencies of the world.
It is listed among the major cryptocurrency exchanges of the world, so you can buy it from them according to your convenience.
Should I invest in Stellar?
Stellar's growth has been gradual, but it has been beneficial. There are so many incredible things happening with Stellar and its products. When looking at the long term, XLM is just as volatile as other coins. However, it has never returned to its all-time high from 2018, even during this year's crypto rally. Yes, it is not experiencing explosive growth, but this is because it was not designed or marketed as a speculative asset, as many other projects are. It's a much higher level of relative stability. It is a long-term investment rather than a one-time event.