Stellar is a full-stack cryptocurrency and digital payments platform, founded in the year 2015 by Mt. Gox with an aim to bring the global financial system under one roof enabled by the power of blockchain technology. Put simply. Users can trade, hold and sell a cryptocurrency, trade forex or securities, and make payments of any size across the globe. The open-source network supports trading in all forms of currencies- dollars, pesos, euros, and so on.
Stellar has a user base of 4+ million with 450 million transactions and growing. Stellar supports the trading of various crypto and requires users to hold a small amount of Stellar Lumen (XLM), which is its built-in digital currency. Stellar also has another non-profit vertical, Stellar Development Foundation, that aims to support the development and growth of the Stellar open-source network. SDF and Stellar seek to unlock the world’s economic potential by making money more fluid, markets more open, and people more empowered.
How is Stellar different from other payment platforms?
The rationale behind Stellar’s existence is to let users deal with different pairs of online currencies and provide a seamless technology to offer other financial transactions at a nominal cost. Did you know that each transaction through Stellar costs just 0.00001 XLM? This cost is uniform across the globe according to Stellar News, and it ensures quick transactions. It ensures lightning-fast and inexpensive payments that support about a thousand transactions per second at 0.00001 Lumens. So, it is a decentralized open network that brings you the ease of doing borderless online exchanges in various forms and also facilitates crypto exchange.
Stellar has a special policy for its users, which allows them to participate in the decision-making process of choosing projects that will be profitable for Stellar’s overall financial health. Stellar gives its users the freedom to select profitable business partners.
Tools
- Account Viewer: It gives a birds-eye view of your account and allows you to send XLM.
- Laboratory: As the name suggests, this tool is designed to educate the users on how each of the tools works.
- Transaction explorer: It displays the most complex data simplistically through graphs and statistics, allowing you to make informed decisions.
- Dashboard: It displays real-time data of XLM transactions.
- Kelp: The Kelp is a BOT, a free and customizable software program that assists you with tasks that you find difficult to do.
Interfaces that support XLM transactions
Lumen is available on most popular exchanges like Coinbase, Kraken, Binance, and Bittrex, to name a few.
Security system
Stellar employs robust security through its four-tier security system – decentralized control, low latency, flexible trust, and asymptomatic security. The security system discourages majority-power and blocks vested interests from joining in.
The current market situation for XLM
Stellar has a market capitalization of $3.45 billion+ with 21.85 billion XLM transactions. It is ranked among the top-20 Crypto players in the industry. In early December, Stellar formed a new strategic alliance with Settle Network with a $3 million investment to gain a foothold in the Latin American market. This partnership marks the fourth investment of this year for Stellar that will be fully paid through XLM. Stellar met another milestone this year-end by launching the Euro stablecoin backed by Europe’s banking institute.
XLM (Stellar Lumens) holds a strong position in the Crypto space with the likes of Ethereum, Tron, and Cardano. According to CNBC, Stellar (XLM) is one of the top performers in the crypto space as the currency’s value rose by a whopping 102.5 % around the end of November. As of 22nd December 2020, the Stellar price rallied at $0.157759.
Is XLM a good investment for 2021?
Financial analysts are majorly betting on Stellar’s market price for the next year. The basic scale to measure its success would majorly depend on its potential to hit the $1 mark in the future. According to capital.com, Stellar’s price is estimated to rise from its current value of an average of $0.20 to $1.11 within three years. If Coinpedia is to be believed, Lumens will fluctuate between $0.5 and $0.7 in the year 2021. Coinliker estimates Lumens to touch the $ 3.33 mark by 2023, which indicates that it would be wise to view Stellar as a long-term investment. The only analyst to mark Stellar down is 3commas that suggests that price will mostly stay average around $0.99. Industry insiders suggest that Stellar Lumen’s market capitalization will skyrocket to outshine the popular bitcoin currency in the next few years. To know more check out XLM Price Prediction by crypto experts.
Another deciding factor that can influence the value of Stellar Lumens is the strategic alliance between Stellar and IBM that may possibly catapult Stellar into a profitable venture. As Stellar is a popular platform for inexpensive transactions, it has the potential to capture a sizable market worldwide. This hints at bullish growth for Stellar in 2021. If you can’t make up your mind, you still have a chance to stipulate the charts through a contract of difference (CFD).
Will stellar reach $1?
While financial analysts have given mixed views on the timeline Stellar would take to reach the $1 mark, it is almost certain that it will not only reach the $1 mark but also hit the $5 mark in two to five years. This makes it one of the investments to watch out for if you wish to make long-term gains.
Bottom Line
Business veterans suggest that Stellar Lumens has a competitive advantage over other cryptos and should be taken seriously as long-term investments. With a market capitalization of $ 3.45+ billion and 21.85 billion transactions, XLM has proved to be a profitable currency. With services like cryptocurrencies and other digital payments enabling quick and inexpensive transactions, Stellar is a complete package deal that is set to deliver a stellar performance in the next year. Stellar’s partnership with IBM and its wide usage in the South Pacific, where it is already responsible for 60 percent of cross-border payments in the retail exchange corridor, makes XLM worth checking out.
