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About XLM

What is Stellar (XLM)?

Stellar is an open-source, public network that lets its users store and conduct digital transactions of money. The platform leverages the power of blockchain technology to decentralize transfer of payments in a faster, energy efficient and highly affordable manner.

Stellar Lumens (XLM) is the native token within the Stellar network.Also known as Lumens, XLM tokens make it possible for Stellar’s users to send and receive money across the world in a faster manner than traditional fiat currencies.

Lumens or XLM offer an extremely low cost method to conduct almost real-time cross-border transactions, letting Stellar compete with established global payment providers. Unlike other services that charge high transaction fees, a transaction of any amount on the Stellar network costs only 0.00001 XLM, which works out to a few cents.

Stellar payment network is a promising project in the blockchain space, thanks to its partnership with IBM on the World Wire project. The initiative lets mainstream financial institutions leverage Stellar’s blockchain for conducting transactions using bridge assets such as stablecoins.

You can learn more about Stellar(XLM) at our KuCoin Blog.

Who Created Stellar?

Stellar was co-founded by Jed McCaleb, the original CTO at Ripple, along with his partner Joyce Kim in 2014. The team formed the non-profit organization Stellar Development Foundation (SDF) with a goal to improve financial access and inclusion. Stripe’s CEO Patrick Collison was a co-collaborator on the SDF, investing $3 million in exchange for 2 billion XLM tokens.

Stellar aims to ramp up the adoption of crypto assets over fiat currencies, with a key focus area being low transaction costs. The blockchain protocol aims to make it easier for moving money across borders without the hassles of centralized financial infrastructure that is costly from the perspectives of time and money.

After a ledger fork in 2014, Stellar updated its consensus mechanism to Stellar Consensus Protocol. The brains behind this consensus algorithm which rolled back hours of transactions was chief scientist at Stellar Development Foundation, David Mazières.

At the time of launch, the SDF created a total of 100 billion XLM tokens with a 1% annual issuance rate. This annual issuance rate was removed from Stellar in October 2019 as the team of developers felt that it did not benefit the protocol.

What is Stellar’s XLM Used For?

The Stellar protocol uses Lumens or XLM primarily to prevent fraudulent behaviors within its ecosystem. Each account created on the network requires a minimum balance of 1 XLM while the minimum transaction fee has been set at 0.00001 XLM.

XLM serves as the native asset of Stellar. Users who wish to make transactions using Stellar’s infrastructure can do so by converting their existing capital into XLM which then gets transferred to the intended recipient. The recipient can then convert XLM back into fiat or their choice.

Stellar’s XLM token facilitates transactions within the network. It functions as a medium of exchange, letting users transact otherwise illiquid assets using its technology.

Stellar also issues grants in the form of XLM coins to developers who can create and implement applications for its technology and further the adoption of its ecosystem. In addition, it serves as a store of value which can be traded on leading cryptocurrency exchanges in addition to the Stellar network.

Where to Buy Stellar Lumens (XLM)

Stellar Lumens is one of the top cryptos by market cap and is listed on top cryptocurrency exchanges around the world. You can also buy XLM via DEXs and cryptocurrency brokers.

KuCoin offers an extremely convenient way for you to buy Stellar (XLM). Here’s how you can buy XLM on KuCoin:

➢ Open a KuCoin Account

Register for an account if you don’t already have one with KuCoin. Follow the steps listed to complete successful KYC verification for your account.

➢ Fund Your KuCoin Trading Account

Buy USDT on KuCoin Fast Trade using your credit card, debit card, PayPal, SEPA or any of the over 70 payment methods we support. Note that you can also buy USDT via our peer-to-peer platform or via interaction with our third-party sellers.

➢ Use Existing Cryptos to Buy XLM on Kucoin

You can also fund your trading account with existing cryptocurrencies. Simply transfer your crypto from your digital wallet and into the KuCoin account before starting your trades.

➢ Trade XLM/USDT on KuCoin Spot Trading

Once you have funds for trading, head to KuCoin Spot Trading to find the XLM/USDT crypto trading pair. Enter the amount of USDT you wish to exchange for Stellar Lumens here.

Check details on how many tokens you will receive based on the real time price of Stellar XLM and the transaction fees. Once you have reviewed this information, place the trade.

➢ Store XLM Securely

After trade confirmation, it will take a few minutes to process your order. Once this is complete, you will receive your Stellar Lumens tokens into your KuCoin account.

You can then choose to hold XLM within the KuCoin account or send them to an external wallet for extra safekeeping.

FAQ

Is Stellar XLM a Good Investment?

Stellar is unlike most of the other blockchains in the market that support smart contract functionality and let developers create dApps. It focuses solely on easing digital payments and fostering the use of digital currencies for transactions in place of fiat currency.

The Stellar network is primarily a platform that allows users to transfer payments globally with the power of cryptocurrency. With this in mind, the open network already has partnered with leading companies such as MoneyGram and IBM.

Its partnerships with mainstream businesses gives Stellar an edge over several of its peers and could indicate potential for growth in XLM's price and market cap. Looking forward, an increased adoption of the Stellar payment network technology among more financial institutions and possibly even governments looking to design CBDCs on its infrastructure could make Lumens an interesting crypto to invest in.

How High Can XLM Price Go?

Stellar Lumens is among the top digital assets, enjoying a high trading volume on top exchanges, but has been overlooked amid the trend of dApps and Web 3.0 related cryptocurrencies. However, a look back at XLM's price over the years reveals that it holds much promise to head to more highs in the future.

It is impossible to quantify and predict how high XLM can go in the coming months and years, owing to the highly volatile nature of digital assets. However, we can review the Stellar price history for some guidance on this.

From an all time low of $0.001227 on 18 November 2014, XLM price has made its way to an all time high of $0.9381 on 4 January 2018. This journey has been filled with several ups and downs, which have continued since then as well.

In 2016, Stellar price gained more than 58%. 2017 - the year of the crypto assets' bull run, was especially good for Stellar Lumens. The XLM token ended 2017 after making gains of over 14,400%. In 2018 and 2019, the Stellar price and market cap took somewhat of a beating, sliding lower by over 77% and 61% respectively.

However, the market sentiment turned upbeat after that, with Stellar price ending 2020 higher by more than 182%. It also eked out over 100% gains in 2021, powered by an uptick in trading volume across the cryptocurrency market.

How Many Stellar XLM Coins Are in Circulation?

As of March 2022, the circulating supply of XLM stands at over 24 billion XLM coins, from the total supply which stands at a little over 50 billion. At the time of Stellar’s launch in 2015, the SDF had issued a total of 100 billion XLM tokens.

The Stellar Development Foundation (SDF) burned more than 50% of the XLM token’s supply in 2019 to reduce its circulating supply. The SDF was given control of around 30 billion XLM tokens, which it has been using for Stellar’s marketing and development, and also for investing in other ventures.

The remaining tokens make up the circulating supply and are available in the market for use within the Stellar network and for trading in the crypto market.

Can XLM be Staked or Mined?

Stellar’s XLM stands apart from most of the other popular cryptocurrencies as it cannot be mined or staked for generating rewards. Stellar utilizes its unique consensus mechanism, the Stellar Consensus Protocol or SCP, in which the XLM coins play no role in achieving consensus.

The total supply of XLM remains fixed as mentioned above, and while the SDF has burned some tokens in the past, it insists that it has no plans to do so in the future.