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The cryptocurrency industry is growing at a rapid pace. Just one decade ago, the world was still getting used to the idea of a completely digital currency that ran on a blockchain network. Today, there are almost 9,000 different altcoins in existence. Even though we constantly see new altcoins join the ranks, most of these have not yet truly made their mark.
Stellar Lumens is a cryptocurrency that has started to gain more attention recently. The Stellar Network was developed with a specific purpose in mind, which also led to the development of a built-in coin.
In this post, we take a closer look at Stellar Lumens and the XLM token and consider whether it might be worth investing in this altcoin.
What Is Stellar?
Stellar is a digital network that runs on the internet. The network was built to create an online representation that could ultimately be used for any type of currency - be it digital or local. The system was developed by a team that wanted to focus on making it as easy as possible to use. In turn, this also opened up certain risks - such as an opportunity for spam and abuse.
The team behind the Stellar network then decided to implement a token for the system. The token was named Lumen; thus the name Stellar Lumens is often used when referring to this cryptocurrency. Lumens serve multiple purposes in the network. For one, Lumens help to create better security by ensuring a minimal amount of tokens need to remain in an account to keep it active. Even a small amount of Lumens can be utilized to ensure an account remains open and usable. This security measure has been considered unideal by some, but still serves an important purpose in ensuring transactions on the network can be completed in less time, and with more efficiency.
Lumen was also developed as a built-in coin to assist in reducing the cost of transacting on the network. Currently, a minimum of 0.00001 lumen is charged for a transaction that is done through the Stellar network. Additionally, an account owner is only required to have one lumen in possession if they wish to remain active on the network. This keeps fees low but still ensures the network is not used for unwanted behaviors at a large scale.
Blockchain Platform Ecosystem
Similar to other cryptocurrencies and altcoins, the Stellar network is also built on top of what is known as the blockchain. The blockchain is essentially a decentralized type of database that cryptocurrencies rely on. The ecosystem of the Stellar platform, however, differs a bit from some of the other cryptocurrencies in existence.
A majority of cryptocurrencies can be mined. These mining operations can be done through computers at home, or by renting space on a cloud mining server. Bitcoin is a good example of a cryptocurrency that can be mined.
With the Stellar network, tokens are not mined like they are with Bitcoin and many of the other altcoins. Instead, a set amount of lumens were created at the time of launch. In 2015, when Stellar initially announced the lumen token, a total of 100 billion lumens were assigned to the network. A 1% annual increase in the number of tokens was observed up to 2019 when a community vote caused the supply of lumen to decline. Today, a total of 50 billion lumens exist. The team behind Stellar did report they are not planning to create any additional lumens in the future, but some of the tokens currently retained will be released into the open market in the future.
An estimated 20 billion lumens are currently available in an open market. Users are able to purchase these lumens through cryptocurrency exchanges. The remaining lumens are currently retained by the Stellar Development Foundation. The primary purpose of the retained lumens is to assist in the promotion, as well as the development, of the Stellar platform.
Stellar Advantages
When looking at a cryptocurrency you are not particularly familiar with, it is always important to weigh your options, and look at what you should expect. There are a few key advantages that the Stellar platform has to offer those who are interested in the market.
The major advantage that any person can gain from Stellar is the support for multi-currency transactions. The cross-currency transaction function has made the process of overseas payments much simpler and faster as well.
When you perform a transaction, you can buy Lumens in your local currency. The lumens are then sent to the recipient, who can exchange the tokens for their own local currency. In addition to speed, the Stellar network also focuses on keeping transaction costs low - which means the expensive fees associated with wire transfers are no longer an issue.
When it comes to cryptocurrencies that focus on providing payment solutions, both Stellar and Ripple have become popular options. Each of these networks can be utilized as a way of performing multi-currency transactions. There are, however, certain factors that differentiate the two from each other. Ripple is an older cryptocurrency than Stellar and has also become a more commonly used cryptocurrency in traditional finance when compared to Stellar. While Stellar is a decentralized network, Ripple has chosen to be a centralized system instead. For some, this adds more security, but there are more to consider as well.
The Stellar network has a larger focus on helping unbanked people obtain access to an effective cross-currency payment system. This is great for areas where access to banking services is restricted or expensive. Ripple, on the other hand, has started to focus more on working directly with banking institutes. Ripple has already been adopted by several banking organizations as a way to move finances to other countries.
The fact that Ripple is now highly used in traditional finance sectors has made it a less volatile coin. Stellar still remains highly volatile, which is one reason why some people turn to other tokens in the process.
Stellar vs Ripple
Properties
Stellar (XLM)
Ripple (XRP)
Properties
Governance
Stellar (XLM)
Decentralized
Ripple (XRP)
Centralized
Properties
Working since
Stellar (XLM)
2015
Ripple (XRP)
2012
Properties
Industry
Stellar (XLM)
Finance/Payments
Ripple (XRP)
Finance/Payments
Properties
Use in Traditional finance
Stellar (XLM)
Medium
Ripple (XRP)
High
What Is XLM?
Every cryptocurrency is provided with a specific ticket identifier that makes it easier for users and institutions to track its usage, analyze the market, and perform other actions. The ticket usually consists of only three symbols and is unique to the specific token or altcoin.
XLM is the ticket identifier that was used in the development of lumens, which form part of the Stellar network. Thus, when a person owns or transacts with XLM, they are essentially buying, storing, sending, or selling lumens on the Stellar network.
Even though we’ve seen some volatility in the XLM token, several reports have shown that it is performing very well. In fact, when looking at statistics from the past five years, XLM is one of the best performing altcoins that have been developed in recent times.
XLM Profile
Ticket
XLM
Max supply
50,001,806,812
Total supply
50,001,803,138
1-year price low
$0.06723
1-year price high
$0.68252
Current Price
$0.40
Market cap
$10 044 169 762
Markets
Binance, Huobi Global, CoinBase
Uses For Stellar (XLM)
Simply noting that Stellar is an open-source network is not enough to help you realize what it can do for you. At the surface level, Stellar is a decentralized blockchain system developed to help people move money - whether locally or internationally - with less friction and problems.
There are two primary purposes that the Stellar network can be used for:
1
The network offers an excellent option for people who need to move money. This accounts for local transactions, such as when paying a client after delivering a product or service. The network is also ideal for moving money to people in other countries.
2
In addition to helping people move money, the Stellar network can also be used as a method for storing money. You can easily buy a set amount of XLM tokens as a way to securely store money in your cryptocurrency wallet. This money can then be used as an investment - allowing you to sell our XLM tokens as the Stellar network grows and Lumens gain more value.
Apart from these purposes, note that the Stellar network was also built to be developer-friendly. A number of tools are provided to help developers integrate the network, along with the payment functions provided by the built-in coin, into apps or websites.
XLM Performance
Even though the current value of XLM is far under $1, the token has already shown significant promise. Throughout the last 12 months, the coin had reached a value over $0.7. By 2026, XLM is expected to reach past $1. The coin does seem to be somewhat volatile at the moment but has grown since the initial founding of the Stellar network.
Stellar Performance
XLM Perfromance
Stellar (XLM)
1m return
32.88%
1y return
134.39%
Should You Buy XLM?
There are pros and cons to XLM as an altcoin in the cryptocurrency market. When deciding whether or not to buy tokens for yourself, ensure you closely examine the benefits, while also taking the drawbacks into consideration.
If you are looking for a cryptocurrency that can help you move money to clients in other countries, then the Stellar network could be a good choice. Additionally, you may also consider investing in XLM if your goal is to have a secure storage system for your money. This could include money that you are saving up. As XLM tokens continue to gain in terms of value, your savings could also grow.
On the other hand, the fact that the token is volatile does impose a risk when using XLM as an investment tool. This should especially be a concern if you are looking for a long-term investment. While the coin has gained in value, it has hit a concerning low in the last 12 months as well. Even though experts speculate that XLM will increase in value in the next few years, this is not a guarantee.
There are a few exchanges that can be used to acquire XLM. You should consider your country of residence and the purpose of the XLM before choosing a specific exchange. Some exchanges do come with specific terms or may lack support for Stellar Lumens.
Binance is currently one of the top-rated exchanges for people who want to invest in XLM.
Due to the popularity of Binance, people from various countries are able to utilize the platform as a way to buy, exchange, and sell cryptocurrencies.
The Binance platform also makes the process of sending XLM to other people easier - even when those individuals are not in the same country as you are. Furthermore, Binance implements a number of security measures to help enhance the safety of the money you invest or transact with.
Apart from XLM, Binance also offers a wide range of other cryptocurrencies. This makes it easier for the user to convert between different altcoins - which is ideal for those who are looking to profit from their cryptocurrency investments.
How To Buy XLM: 3 Steps Algorithm
Only a few fundamental steps are needed when buying XLM through the Binance network. Even though other exchanges do offer access to XLM, Binance is well known for supporting the coin and has become one of the more trustworthy options in the industry.
We are going to share a three-step algorithm to help you understand the process of buying XLM through Binance. Do make sure you go through the initial registration process first and submit any details required for verification.
Step One: Market Analysis
Always start with a thorough market analysis. You want to make sure you buy XLM at just the right moment - preferably when the price is lowest for the day. This would, in turn, bring you more value on your investment.
XLM Chart
Step Two: Funding Your Account
Once you have taken a closer look at the market, it is time to fund your Binance account.
Start by clicking on the profile icon at the top header of the platform.
Funding Binance Account
Follow the steps indicated. You may need to activate two-factor authentication. Then click the “Deposit” button. Enter the amount you want to deposit into your account and add your payment details.
Binance Account Funding
Step Three: Buying XLM
The last step is to buy XLM on the platform. Once you have made a deposit, find the XLM ticker on the platform. Specify the number of XLM you want to buy and confirm the transaction.
Top 10 Best Cryptocurrencies To Invest In
Having a diverse portfolio is always good for your trading account. Moreover, putting all your eggs in a single basket is never advisable, especially while investing. For that matter, we have created a list of the top 10 cryptocurrencies with the highest probability of generating a great return on investments. Keep in mind that each cryptocurrency mentioned in this list is selected after detailed market analysis and research work. Our experts have only chosen the options with exceptional current market performance and positive future indications.
Stellar Lumens are an altcoin that has gained a lot of traction since the beginning of the year. First launched in 2015, the coin has climbed the ranks over time, but has yet to reach the $1 mark per token. The volatility of the XLM token is also a factor that causes many people to feel unsure whether or not an investment in Lumens would be a good idea. Overall, many do believe that Stellar Lumens and the XLM token hold promise, but careful planning of your investment in the cryptocurrency is still advisable.
FAQs
Can Stellar Lumens reach $100?
One XLM token is currently worth just over $0.27 at the time of writing. Throughout every 24 hour period, we also see the price fluctuate. Over the last few months, however, we have seen the price continue to climb. Experts do not, however, believe that XLM tokens will reach a value of $100 anytime soon.
Is Stellar Lumen a good investment?
Stellar Lumen is considered an excellent cryptocurrency for investors in 2024. However, you should understand that any investment in cryptocurrencies carries risks.
What will stellar lumens be worth in 2025?
Various estimations have been made, with most taking the current trend at which Stellar Lumens grow into account. According to one report, Stellar Lumens will likely be worth around $0.93 per XLM by the end of 2025. However, you should understand that in cryptocurrencies there is always a risk of losing funds due to volatility and other negative factors.
Will Stellar make me rich?
While several predictions have been made, stellar remains a very volatile cryptocurrency. With this in mind, it is hard to determine whether investing in XLM now will truly pay off over the next decade. Still, Stellar continues to show potential and its value has been increasing significantly in just the last year.
A professional English-Spanish translator, writer, proofreader, transcriber. Jose Antonio Gastelum offers his services for website content, blogs, research papers, documents, books and manuals about technology, finance, investment, tourism and insurance. In addition, he has some experience in web and app development, content marketing and SEO optimization.
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Glory is a professional writer for the Traders Union website with over 5 years of experience in creating content in the areas of NFT, Crypto, Metaverse, Blockchain, or Web3 in general. Over the last couple of years, Glory has also traded on different cryptocurrency and NFT platforms including Binance, Coinbase, Opensea, and others.
“I understand a lot about this space, being familiar with CEX, DeFi, and DEX, as well as operating across the Ethereum, Binance, and Polygon networks. Also, I know the intricacies and subtleties of NFTs and crypto, thus I am able to bring to table the best content and help connect with the audience better.”
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.
