The reasons for the popularity of Stellar Lumens (XLM) and its prospects

Over the last 10 years of cryptocurrency market development, more than 9.000 coins have emerged. The crypto industry is growing rapidly, attracting investment and persistently reminding us that the world has fundamentally changed. Even major financial institutions are turning to crypto for international transfers. In many cases, the Stellar Lumens (XLM) platform is helping with these transactions.

Who created Stellar Lumens (XLM) and why

Created in 2014, Stellar is a crypto platform based on the Ripple (XRP) protocol. It was founded by Joyce Kim and Jed McCaleb, who were eager to centralize the ecosystem and facilitate transfers between assets.

The key characteristics of Stellar that make it radically different from other cryptocurrencies on the market are the following:

the platform-based digital currency is called Lumens (XLM);
it is an open financial system that offers low-cost financial services;
it is open-source;
it supports smart contracts.

This cryptosystem aims to facilitate the transfer of assets. It has never sought to exist in isolation from the overall financial ecosystem, but rather to become an integrated part of it. Its undeniable advantage is that XLM’s existence provides people, even those on low incomes, with access to low-cost financial services.

Strengths of Stellar Lumens

The year 2017 was a market breakthrough for Stellar Lumens. It became one of the top 20 cryptocurrencies by market capitalization. From the launch of the coin till 2017, its price had increased 300 times. The partnership with IBM, the global computer giant, had also contributed to this significant growth.

In the usual crypto market scenario, after the rise comes “crypto winter”. From 2018 to 2020, Lumens experienced a collapse. In 2021, on the back of Bitcoin’s rise, XLM skyrocketed again, but now it is experiencing another fall. This, however, gives profitable opportunities for long-term investing in this project.

In terms of short-term investment opportunities for Lumens, the XLM/USD pair is highly volatile, which makes it quite tempting for active traders.

Prospects for Stellar Lumens

Despite the rally in 2021, when the value of Stellar Lumens coin increased 6 times, in 2022 the growth dynamics of XLM was inferior to many altcoins. So, at the middle of May, the Stellar exchange rate was $0.13 per coin. Compared to the end of April, when the rate was $0.18 – the change was -0.05 dollars or -27%. As you can see, the change is significant. Despite such a fall, many analysts think that it’s just the correction to the previous levels and say that it’s a good opportunity to buy cheaper coins to add to your portfolio before the next rise.

Stellar is working hard to become a better and faster substitute for payment systems such as MoneyGram and Western Union. With the efforts of this crypto platform, the gap between cryptocurrencies and the standard banking system is getting smaller. By developing several global fiat gateways, the system is moving steadily towards its goal. Therefore, a very clear and promising future awaits XLM.