Stellar and its native token, XLM, have been a very popular topic in the crypto community
But what’s so special about this coin?
Well, let’s find out!
What is Stellar?
Stellar is a public system that enables monetary transactions between any two currencies: both fiat and crypto. Stellar is also a smart contracts platform, like Ethereum, Cardano as well as NEO.
It is a platform connecting banks, payment systems and people. Stellar is structured to transfer money securely in little time and with low cost. The platform is mainly used for cross-border transfers.
On the other hand, Stellar Lumens (XLM) is the platform’s native crypto-asset. The Stellar network is supported by Stellar Development Foundation, a non-profit organization.
History of Stellar and XLM
The Stellar network was created in 2014 by Jed McCaleb, along with Joyce Kim. McCaleb had infamously founded the crypto exchange Mt. Gox and the Ripple network.
After the network was founded, the price of the Stellar native currency was $0.0029. The value escalated to $0.062 and the market cap became $20 million in December of the same year.
After that the price seemed to drop lower and lower, however, the situation changed in 2017. XLM price went up hitting a new all-time high of $0.064 in May. It dropped shortly after, but gained momentum during the Bitcoin craze of 2017 and reached $0.938 on January 04, 2018.
XLM rose shortly to $0.45 in April 2018 and went on a downward spiral ever since. Price changes and everything you need to know about this coin can be seen just by checking XLM news.
Advantages of Stellar
- Great transactions
The stellar network executes 2000 transfers per second. It is among the fastest methods for transcontinental payments. The cost of transactions is also extremely cheap, almost free. This is because the Stellar Development Foundation is a non-profit as they work hard to have the fastest and safest transactions.
- Smart Contracts, DApps
Stellar is often compared to Ripple because of the fact that they were both founded by Jed McCaleb. However, there is a major difference in that Stellar, in conjunction with being a payment platform. It is also a smart contracts platform and hosts decentralized applications. This gives Stellar an advantage over other blockchain-based payment systems
- Backed by corporations
As mentioned before, Stellar was created by McCaleb who had already been heavily involved in the crypto industry. He was a trusted person in the community, so selling Stellar to the investors wasn’t an issue for him.
On the other hand, Stellar Development Foundation is backed by the Senior executive of PayPal, CEO of Stripe, founder of WordPress and many more.
- Big Market Cap Coin
XLM is currently among the top 20 crypto coins and is a great investment tool for crypto enthusiasts. The volume and liquidity of the coin are high, it is not in danger of market manipulation since the coin has a market cap of $2 billion.
Overall, Stellar is a platform with great potential and same goes for its coin. If you want to smartly invest in XLM coins or any other coin for that matter, you should check out this guide on crypto portfolio management. Use a coin tracker to make investing in crypto more effortless.