- Market Cap $2,9 billion
- Daily trade volume $300 million
- Quicker transaction time (3-5 seconds).
- Less transaction fees as compared to fiat payment systems.
- Stellar project has a diverse use case and can be used for file sharing, streaming content, deploying dApps and deploying smart contracts, video hosting and social media networks.
- A large amount of tokens are in the hands of the Stellar Foundation taking away the decentralised part of the project.
Stellar (XLM) in a nutshell
The Stellar token was built to support cross-border payment transactions. It is being used by many remittance providers across the globe and the XLM token has become a top-used cryptocurrency.
Transactions on the Stellar blockchain are quicker and cheaper than on other fiat networks.
The initial total supply of XLM was 10 billion tokens with a built-in mechanism for a 1% inflation. However, this was changed to 50 billion tokens and the inflation part was removed through a community vote proposal in 2019. So now there are just 50 billion Lumens and no more tokens will be added to the Stellar network in the future.
The distribution mechanism is explained below.
Open market: 20%
Stellar Foundation: 30%
Has XLM Token been audited and doxxed?
Yes. The XLM token is edited regularly on a quarterly basis by the Foundation. The token audits are also supported by Ledgible. The team behind the XLM Token publishes regular documentation via press releases and is active on social media channels.
Trust & Fairness: 3
Exchanges & Swaps: 5
Overall Rating: 3.75
Detailed Review of Stellar (XLM)
The Stellar network was built to support quicker and cheaper cross-border transactions. The current fiat transactions across the border take too much time and are expensive with many middle parties involved. Stellar sought to solve this issue by providing a network that could transfer funds in a fraction of the time taken by fiat payment networks.
The fees for processing transactions on the stellar network are minimal: 0.00001 lumen. Most transactions are confirmed within 3-5 seconds on the Stellar network.
The Stellar network has partnered with many remittance providers in Africa and the South American region and seeks to solve issues plaguing migrant economy workers inhabiting these regions.
Stellar has also recently added support for USD stablecoin and the USDC also runs on the XLM network.
The Stellar network has established major partnerships with well-known payment providers such as MoneyGram and Cowrie, Wyre, and Stably.
Where to Buy Stellar Token?
The Stellar token can be bought on almost all popular exchanges such as OKEx, Binance, Digifinex, Coinbase, Nominex, WazirX, Gate.io, FTX, Huobi Global, KuCoin, Bithumb, Kraken, Crypto.com, Gemini, Bitfinex, Coinone, Poloniex, Phemex, LBank, Upbit, Paribu, CoinDCX, LATOKEN, and BitForex.
You can buy XLM either through cash via P2P (peer-to-peer), credit or debit cards, or through other cryptocurrencies.
If you already hold some crypto, then you can use the coins to purchase XLM directly through the native decentralized exchange known as Lobstr. It allows direct purchase through fiat currencies such as the US dollar. All you need to do is connect your wallet such as Metamask and select the appropriate currency pair that you wish to use for purchasing XLM (for example USD/XLM). The decentralized exchanges are a quicker and easier method that guarantees anonymity as you do not have to deposit fiat currencies or complete a KYC process before purchasing small amounts of the Stellar token. You can also use XLM for purchasing other altcoins through the decentralized route as explained above.
What Can you do With the Stellar Token?
Deploy dApps or issue tokens: The XLM ecosystem supports the building of dApps and can be used to run decentralized applications and also issue tokens.
Hodl as a long-term investor: The developers of XLM have plans to include the token as a form of payment on NFT marketplaces all over the world. You could also simply hodl it and gain from its price appreciation in the long term. The token also generates passive income for its holders as it can be staked.
Swap XLM to other tokens: You can use XLM and directly swap to other altcoins on a decentralized exchange. The process is quick and simple and is described below.
How to Swap XLM to other altcoins
Simply head over to a decentralized exchange and connect your wallet. Then, select the amount of XLM you wish to spend (factoring in transaction fees) and swap it for another crypto token. You will receive the tokens in the same wallet.
How to Buy XLM?
In order to buy XLM, you will need to use a centralized exchange or a decentralized exchange. Decentralized exchanges (DEXs) are simple and easy to use and do not require any registration. The process of token swap on DEXs has been explained above.
For purchasing XLM on a centralized exchange, you will need to register and create an account with the exchange and then deposit fiat currencies or crypto assets that can be used to buy XLM. You will need to complete the Know Your Customer (KYC) procedure to open an account on a centralized exchange.
Steps to open an account on a centralized exchange:
1. Go to the exchange site where XLM is listed and click on the Register button.
2. Then select your country of residence and proceed to the registration interface. Here, you will need to provide your email ID/phone number and a password that will be used to login into the newly created account.
3. Click on the agree to terms and conditions button and wait for the verification mail or message.
4. Clicking on the verification tab will take you to your new account. You will need to provide documentation such as a driving license, passport, or other government-issued IDs to confirm your identity and address. A utility bill and national ID may also be accepted in some cases. This process is known as the KYC regulation and it is in place to prevent the risk of fraud and to ensure that the site is safe for all users.
5. Once this additional step is completed, the exchange will activate your account and you can deposit funds to start trading. You can select fiat currencies or cryptocurrencies supported by the exchange to deposit funds to buy XLM.
6. Most exchanges support multiple payment methods including credit/debit cards, bank transfers, third-party payment processors, and P2P transfers.
Upcoming Events/Future Roadmap
Stellar is working on a layer 2 solution that will provide a bridge or sidechain for quicker transactions between different blockchain networks. This would make the Stellar blockchain an interoperable network and increase its usage.
Stellar is also planning to improve liquidity by partnering with OTC networks. The Stellar Enterprise Fund will support at least one new enterprise starting in 2021.
The all-time high price of one XLM was $0.875563 on January 3, 2018. It is currently trading at $0.26 at the time of writing (Source: CoinGecko). The all-time low price was $0.00047612 on March 5, 2015. Comparing the all-time low and all-time high prices, we get returns of about 53972.6% which are very impressive returns. The XLM token is slowly establishing its position as a leading cryptocurrency. The XLM price can be checked on sites like CoinGecko and CoinMarketCap.