Blog Crypto Stellar Lumens (XLM) Coin Review: Is It the Future of Global Finance?

Stellar Lumens (XLM) Coin Review: Is It the Future of Global Finance?

date March 24, 2022 time 6 min read 482 views

To understand the value of stellar lumens, we need to look at what the Stellar protocol is. It’s designed to support the movement of money across international borders, as well as exchanging currencies – both fiat and digital. The utility of this protocol could be the decisive factor behind the value of stellar XLM’s native token.

Stellar lumens coin review

Stellar XLM is the native cryptocurrency and utility token used to power the Stellar Protocol. It is used to pay transaction fees and keep the network functioning as a fast and efficient payment system.

Getting the stellar lumens price prediction right is a challenge, but is it possible?
Getting the stellar lumens coin price prediction right is a challenge, but is it possible? (Source: Vizaca)

The Stellar Protocol is an open-source and decentralized protocol that connects banks, payment systems, and people. It enables the facilitation of transactions between digital currency and fiat money. All forms of money, like bitcoin, US dollars, pesos, are supported on the network.

One of the goals of Stellar XLM is to bridge the gap and enable all the world’s financial systems to work together on a single network. The stellar lumens coin is very instrumental in achieving this goal.

Stellar lumens coin usage

Asides from its use as the native payment token for transaction fees, stellar lumens coin plays a significant role in keeping the network secure and free from bad actors that could potentially use the platform for nefarious purposes, owing to its ease of implementation. We will discuss this in the next section.

Holders can also trade stellar lumens coin like any other cryptocurrency in the market. Investors use it as a store of value, traders profit based on the difference between the buying and selling prices. 

While stellar lumens coin price prediction can be tricky, early stellar lumens coin (xlm) investors have greatly benefited from the coin’s price growth, with some receiving as much as 15,000% return after seven years.

Stellar lumens price history

Let’s take a look at Stellar XLM’s price history to help you make your own stellar lumens coin price prediction. After receiving $3 million seed funding from e-payment company Stripe in 2014 and entering the market at $0.003 in August that same year, stellar lumens price quickly doubled to $0.004 in just five days. The price fluctuated briefly within that range before hitting its all-time low of $0.001 in November 2014.

Stellar lumens' price has been characterized by two sharp peaks, but largely hovering around the $0.20 mark.
Stellar lumens’ price has been characterized by two sharp peaks, but largely hovering around the $0.20 mark. (Source: CoinMarketCap)

For the next four years, stellar lumens coin price slowly rose until it experienced a sharp peak and hit its all-time high of $0.9 in January 2018. A drop followed this feat to $0.2 the next month. The coin price gradually dropped until it reached its recent low of $0.04 in March 2020 before hitting its recent peak of $0.7 in May 2021.

Today, stellar lumens coin price is $0.19. With a 24-hour trading volume of over $224 million on Coinmarketcap and a market cap of $4.6 billion, stellar lumens coin currently ranks 30 on the most prominent cryptocurrencies ranking by market cap, which can lead it to be one of the next cryptocurrencies to explode in 2022.

One of the things to consider when the subject of stellar lumens coin price prediction pops up is the project’s developments and the team’s strategic partnerships.

The Stellar Protocol has been actively making moves to actualize its vision since its 2014 launch. From its partnership with Brazil’s first bitcoin exchange – Mercado Bitcoin – to upgrading its consensus algorithm in 2015 and partnering with several payment platforms across the globe, holders believe stellar lumens price is on a good trajectory as the developments roll in.

Where to buy stellar lumens

Stellar lumens coin is a freely-tradeable token on the native Stellar exchange, Lobstr. You can also find it on major exchanges like Binance and Huobi Global with good liquidity.

You can store stellar lumens coin in wallets like My Ether Wallet, Atomic Wallet, Trust Wallet, Ledger, Trezor, etc. Some people leave their cryptocurrency in exchanges. We generally do not recommend that due to the risks involved. Hardware wallets are the safest way to store your cryptocurrency assets.

Note that digital currencies can be volatile, and buying them can be risky. While lumens will always have utility in the Stellar network, the price of lumens denominated in fiat currency may change, and you could lose significant value.

Jed McCaleb and former lawyer Joyce Kim created the Stellar Protocol. McCaleb was previously co-founder of XRP and Mt. Gox, the first exchange in the world. 

Mt. Gox shut down in early 2014 after experiencing the mother of all Bitcoin hacks. The exchange lost about 800,000 BTC to hackers and made international news headlines for a long time.

Let’s take a closer look at the ambitious Stellar Protocol, and some strategic partnerships it’s entered into to bolster its real-world utility.

What is the Stellar Protocol?

Stellar Protocol is an open-source, decentralized network that gives everyday individuals access to move and store all forms of money globally without the restrictions put in place by Governments and centralized financial institutions. 

The protocol ultimately aims to replace the traditional banking system, but some analysts are skeptical.
The protocol ultimately aims to replace the traditional banking system, but some analysts are skeptical. (Source: Unsplash)

The network aims to create a borderless blockchain payment network that boosts financial inclusion by reaching the underbanked in poor and developing countries and decentralizing the world’s financial systems.

Users can access foreign fiat currencies, like US Dollars, Pesos, Naira, and exchange them with each other and digital currencies, like bitcoin. Thanks to its unique Stellar Consensus Protocol (SCP), Stellar is faster, cheaper, and more energy-efficient than typical blockchain-based systems.

How it works

Improving on Bitcoin’s proof-of-work consensus mechanism, Stellar Consensus Protocol strives to be better by being configurable, fast, and highly efficient. It utilizes a network of computers running the core Stellar software to verify transactions and keep the network in sync. These computers are known as nodes. 

Transactions cost less than pennies and take as little as five seconds to process on the Stellar Protocol. This makes it ideal for international and consumer transactions and significantly disrupts the traditional banking sector that charges high fees for cross-border transactions.

Global banking without barriers

Various analysts have expressed pessimism about the Stellar Protocol’s ability to achieve its goals, given the platform’s relative complexity when the primary target audience is considered. Stellar Protocol has partnered with payment service providers in various regions of interest to tackle these concerns head-on. 

Some of the service providers include:

  • Vumi the open-sourced messaging platform of the Praekelt Foundation in South Africa. Vumi uses cellphone talk time as currency using the Stellar Protocol. 2015.
  • Cloud-based banking software company Oradian to integrate Stellar into Oradian’s banking platform to add microfinance institutions (MFIs) in Nigeria. 2015.
  • IBM and KlickEx to facilitate cross-border transactions in the South Pacific region. The cross-border payment system developed by IBM includes partnerships with banks in the area. 2017.
  • SureRemit, a Nigerian-based non-cash remittances platform.
  • Ukraine, in the development of Ukraine’s digital infrastructure, after which Stellar value increased by 40%.

The Stellar Protocol gives global access and financial opportunities to people who would not be able to benefit from the traditional banking systems. One such example is access to peer-to-peer loans, where applicants don’t need approval from financial institutions to qualify.

Another everyday utility of Stellar XLM is the ease with which people living abroad can send money back home to their families. Fast and without high processing fees.

The potential use cases of the Stellar Protocol are limitless. Its real-world utility and rapid development set it apart and bolster independent investors‘ confidence in the project.

Buy with MyConstant loans

With P2P crypto lending platforms like MyConstant, all you need to do is collateralize your crypto to receive quick crypto loans with low-interest rates, and buy stellar XLM coin. 

Also, after buying your crypto on an exchange, you can deposit it in our multi-cryptocurrency wallet (where you’ll earn up to 4% for stablecoins), or lend it out and earn interest on crypto up to 14%.

Other benefits include:

  • 24/7 customer service.
  • Rates as low as 6%.
  • Early repayments for lower rates.
  • Instant matching.
  • Store and borrow against over 70+ different cryptocurrencies.

Sounds interesting? Sign up for a free account today and start investing in stellar XLM coin.

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George Schooling

George Schooling

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