- Price $0.222729
- Market Cap
The cryptocurrency of Stellar is an offshoot of the more well-known Ripple (XRP) cryptocurrency, and already it is starting to get a name for itself in the financial world. Stellar was originally launched in 2014 by Jed McCaleb, who is a co-founder of Ripple.
Essentially, it is an open source network that presents users with a way of transferring money across boarders simply, efficiently, quickly and above all, cheaply. It is this feature that has become a standout point for XLM, and is helping to make it pretty popular.
What Sets Stellar Apart?
XLM is similar to BTC (Bitcoin) in many ways, it is a digital token of exchange that is used through blockchain technology. These coins stand apart from others because they have been created to link fiat currencies, and allows for an almost instantaneous exchange with the added benefit of the buyer or seller never actually touching the cryptocurrency. Stellar describes its service as “a distributed, hybrid blockchain that is fully open source”.
When trading with Lumens, each transaction comes with a tiny fee of just 0.00001 XLM, a sum that is hardly even noticeable. This fee works as a preventative measure against any large scale transaction attack. Essentially, the Lumens are playing the part of being anti-spam. They also allow for multi-currency transactions.
One of the most unique aspects about the coin is that fact that it is sometimes sporadically given away for free. Partly, this is done to achieve a more inclusive digital economy, part of the stellar mission, and party it is done to create an easy way for its backers to extend the reach of the network. It is estimated that all Lumens will have been distributed in 10 years, and at that point people will have to actively buy or exchange it.
Not all of the tokens are given away for free however, and those that want to be a part of the Stellar venture but are not given any will have to buy them.
In The Beginning
For those that are new to the world of cryptocurrencies, Stellar is not likely to be the first choice, as its price is still pretty unstable.
On the 5th August 2014, the price of Stellar started humbly like most new digital currencies, with a value of just 0.0024 cents. From here it remained pretty much the same until the end of October the following year, in 2015, where it hit 0.002. Finally, it was beginning to grab the attention of some potential investors.
Stellar Grows In Value
Its price remained pretty consistent until the following month when it began to slowly decline again back down to 0.001, then again showed very little change until the 8th December when it reached 0.0022 again. This is where things started to change, as by May 2017 the Stellar to Dollar rate had reached 0.010, then doubled in just 24 hours to reach 0.021. It was at this point that investors really got interested, with thousands of people regularly checking the price charts for updates. Again, it then doubled in 24 hours, and was worth 0.053, an increase of 2,109%! It is no wonder that it is often described as one of the fastest growing crypto on the planet.
Its price remained consistent until May 2017, when it dropped to $0.40, however this didn’t last long, as by December it had reached the value of over a ‘whole’ cent, at $0.12. Less than two weeks later there was another dramatic upward trend, reaching 0.23 cents on December 16, then by January it was worth just over half a dollar. By the 3rd of January it had almost reached the dollar mark, at $0.89 cents. Investors must really have had their hopes up by this point. A reason behind this sudden surge could be due to the recent announcements of partnerships with major banks and tech companies.
Reasons Behind The Rise
In March 2018, the value of the coin had dropped to 23 cents by the 25 March, with an overall market capitalisation of more than 7 billion USD. In just a 7 day period, it had risen from just over $0.2 to $0.35, which is an increase of 75%. 2018 could be a big year for Stellar for multiple reasons.
Firstly, in October of last year, the American technology giant to of IBM announced its forthcoming cooperation with Stellar Lumens for cross-border banking operations. Using stellar, these sorts of transactions could take just a few seconds and cost just a few cents.
Additionally, ATM like vending machines are being added to the Bitcoin and Litecoin devices that are already in use in cities across the globe. In November of 2017, the first Steller Lumens ATM was exhibited in a festival in Singapore, so it is looking likely that many more will come into existence in the near future.
Lastly, FairX is going to start using the platform of Steller due to the fact that it is both fast and simple, this in itself should give it a considerable advantage over its main competitor of Coinbase. The launch of this exchange will significantly increase the demand for this cryptocurrency!
Therefore the advice of many experts is to buy Stellar Lumens now while they are still affordable, because in the coming months it is looking likely that things will begin to change.