According to coinmarketcap.com, Stellar’s native token XLM displayed a massive increase of 8.33% in the previous 24 hours. An increase from $0.4238 to $0.4578 right now was registered. This tremendous run has made Stellar the 12th-placed cryptocurrency in the world, with a market capitalization of $13.92 billion. The performance of the token has been the center of both the analysts’ and the investors’ attraction the reason that the trading volume was set at 1.4 billion USD, which is equivalent to +112.53%.
Jed McCaleb and Joyce Kim established it in 2014. Stellar has been emerging as a decentralized protocol that helps users make fast and low-cost cross-border operations. The platform’s focus on enabling banks, payment systems, and individuals to be able to easily connect to each other puts it in a position where it might become a disruptor of the global financial system. Indeed, Stellar’s capability of moving funds in a very quick and cheap manner, at the same time as being extremely reliable, is a very appealing asset for both the institutional and the retail user.
This hike in the price of the coin now comes as people are showing more curiosity in those blockchain applications that provide accessibility to finance. This especially includes the people in developing nations where they have limited or no access to banking services. Stellar’s willingness to improve or even replace traditional banking as a major issue in developing countries and the financial inclusion of the unincluded and low-income groups has caught the attention of people who are interested in such projects themselves.
How a token XLM is designed plays a big part in the Stellar ecosystem. The token was created primarily to serve a few different functions. The functions include the safe facility of transactions, the usage of the token as a go-between currency helping convert fiat money to cryptocurrencies as well as an anti-spam device to prevent network flooding. As far as the total supply, the maximum supply of 50 billion is determined for XLM, and their total circulation is 30,410 million units, so these aspects contribute to the token’s value proposition.
Within Stellar, the Stellar Consensus Protocol (SCP) has made a great name for itself, being the very 1st and unique feature of the network. Its energy-efficient work has been praised for the way it validates transactions. SCP uses the consensus protocol to determine a network of validators that are selected by XLM holders, who stake their tokens to vote for trusted nodes. This allows the throughput of Stellar to be the highest among decentralized currencies while it is still being secure and decentralized.
As time goes on, the cryptocurrency market is changing and therefore the focus of Stellar has shifted to real-world use cases and its potential to disrupt cross-border payments, this made XLM a token worth monitoring. The company’s cooperation with banks and money changers and the ongoing investment in user-friendly interfaces could contribute to the development of the project in the next few months.
Nonetheless, all cryptocurrency investors must know that every investment in cryptocurrency like XLM, which has proven to be very profitable so far, is linked to the future upon which they really do not know the outcome. The cloudy regulatory environment and the presence of fierce competition in the blockchain payments market will require Stellar to change and come up with a new and maybe better solution.