Stellar Lumens: Promising Protocol Token

ProductJan 05, 2022
Stellar Lumens: Promising Protocol Token

Stellar Lumens is one of the most recognized projects in the crypto industry, known for its tight focus on quick crypto transactions. It has a decentralized exchange where users can trade assets.

The project had a moment of fame in early 2018, when the price of its native coin, XLM, reached an all-time high of $0.87. At the end of  2021, XLM is worth around $0.33, constituting an overall 70x increase  since the start of the project.

History and Objectives

Jed McCaleb founded Stellar Lumens in 2014, shortly after his departure from Ripple due to disagreements over its future. The newly born project took off after Stripe invested $3M in its development. Since then, the team has been actively working on a fast cross-border payment solution.

Stellar's goal is to become a tool providing access to global financial markets through a stable internet connection and essential software.

What Is So Special About Stellar Lumens?

In a nutshell, the Stellar network allows sending a particular type of cryptocurrency to another crypto address and getting it in a different asset form. The system is comparable to SWIFT, which can transfer GBP to the EUR account. SWIFT uses USD as an intermediary, while the Stellar network utilizes XLM for the same purpose. However, the actual delivery time and fees differ dramatically – the average transaction speed is two seconds with a fee of 100 stroops (0.00001 XLM) per transfer.

Security

Stellar Lumens has a clean security record. The system has never been  abused or hacked  in any way.  The network uses its transaction fee and condition of having 1 XLM in a wallet at any time to protect itself from DDoS attacks. Thus, the cost of a breach would be pretty high and pose an unfavorable risk/reward ratio for a hacker.

Development

The Stellar team is actively developing the network for cross-border payments. The project actively participates in IBM World Wire, an initiative aiming to provide a much more inexpensive money transfer solution for banks and other financial institutions. In 2017, Stellar again joined forces with IBM to create a payment solution for the South Pacific region. In 2021, Ukraine asked the project to help build the country's digital infrastructure. After the cooperation announcement, the XLM price surged over 40%.

XLM Coin

XLM, also referred to as Lumen, is Stellar's native coin. Unlike many other projects building their cryptocurrency on the Ethereum or Binance ecosystem, XLM utilizes its own blockchain. The coin is primarily used as an intermediary in peer-to-peer transfers within the Stellar network.

XLM is available on almost all major crypto exchanges, including Binance, Kraken, and Bittrex. You can also buy Lumens on CoinLoan.

XLM Coin Price

Stellar Lumens is a project with clear objectives and established partnerships. Yet, that didn't save XLM from fluctuations. XLM is subject to high volatility – after ICO, the price plummeted, falling from $0.003 to $0.001. However, the coin grew over the years, eventually climbing to the $0.87 mark during the 2018 bull run. Closer to the end of 2019, XLM lost most of its value and was priced at just over $0.05. The 2021 bull run helped the XLM recover, but the coin could not surpass its all-time high. Today, XLM is worth $0.33.

XLM Price Chart. Source: CoinGecko
XLM Price Chart. Source: CoinGecko

Despite ups and downs, the total rise in the XLM value amounted to 70x.

Stellar on CoinLoan

If you are looking to buy XLM, you can try CoinLoan. Our platform offers several services to manage cryptocurrency apart from a purchase. Get a loan with XLM collateral or simply use our Interest Account to earn up to 7.2% APY.

Use XLM as Collateral for Crypto Loans

With XLM, you can get an instant loan on CoinLoan. Use your funds as collateral and lend any other crypto available on our platform. The approval process is quick and automatic – just pick the options that fit you best. Final loan conditions depend on the chosen LTV, loan period, and required asset. Sign up to get instant loan approval.

Use XLM to Receive Interest

Use the CoinLoan Interest Account to earn compound interest on XLM. Interest Account is similar to bank savings accounts but offers much better rates. Simply transfer XLM to CoinLoan and see the currencies generating returns to start using it. At the moment, we offer 7.2% APY on XLM coins with the maximum CLT staking bonus. Sign up to start earning today.

How to Buy XLM on CoinLoan Exchange

You can use our Crypto Exchange to buy XLM. Please check all the available pairs here. You can also buy XLM with fiat currencies.

Disclaimer:

The information provided by CoinLoan (“we,” “us,” or “our”) in this text is for general informational purposes only. All investment and financial opinions expressed by CoinLoan in this text are from the personal research and open information sources and are intended as educational material. All outlined information is provided in good faith. However, we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information in this text.

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