In November 2021, popular cryptocurrencies like bitcoin and Ethereum reached all-time highs. For the first time in history, each bitcoin was worth $68,000 and Ethereum coins were worth $4,800.
Even though a bear market ensued afterward, these numbers got many new people interested in crypto. But they aren’t the only coins worth investing in. There are countless cryptocurrencies, many of which are shaking up industries by providing technological breakthroughs.
Stellar Lumens (XLM) is one of those disruptive cryptocurrencies. So what is XLM? It’s the native crypto coin of the Stellar blockchain, which is shaking up the global payments industry.
But how much is XLM worth, and what makes this cryptocurrency so special? Keep reading below to learn all about this cryptocurrency.
What Is the Stellar Network?
Wondering how Stellar works, what separates this network from all the other blockchain networks that crowd the crypto landscape these days?
It’s a network that is rebuilding the payments industry. It’s changing the way that individuals and institutions can send money around the world.
Transfers that were once very time-consuming and very costly can now be made instantly for a fraction of the traditional cost.
It allows money to move across borders with ease. Its usefulness rivals that of Ripple (XRP) by making money transfers simple and painless between institutions.
Stellar also has a built-in marketplace, thanks to its in-house order book that tracks the ownership of assets.
What Is XLM?
So what are Lumens? Stellar Lumens is the native cryptocurrency of the Stellar blockchain.
It’s one of the best cryptocurrencies to buy if you plan to actually use crypto, rather than buy and hold it. The current XLM price is low, but unlike bitcoin, it has value because of its utility, not just its token price.
Many retail investors use Stellar when they are transferring assets between wallets, exchanges, and accounts. That’s because these transfers can be made instantly.
And sending XLM is far cheaper than sending many other cryptocurrencies like Ethereum. Transaction costs can be fractions of a penny, so it’s virtually free to use.
Benefits of Stellar Lumens
When Stellar was first created, it copied the source code from Ripple, so it shares many similarities. One of the most prominent is the use of gateways, or in the case of Stellar, anchors.
By using anchors, individuals or institutions can bring funds of any kind, be it cryptocurrencies or fiat currencies, and use Stellar to convert those into a new representation of those assets on the Stellar network.
These assets can then move around the world with ease. When the recipient withdraws the funds from the Stellar network, they can be converted for their chosen currency using the appropriate anchor on their end.
If you find yourself moving money or crypto around frequently and want to save as much money as possible on transaction fees, then it pays to get familiar with the Stellar ecosystem.
Stellar Is Changing the Game
So what is XLM and the Stellar network? It’s a new way to transact and move money from one entity to another, even if they are across the planet from each other.
It’s a cheaper, much more efficient manner of moving funds, and major financial institutions are taking notice and putting Stellar to work for them.
Looking for more new cryptocurrencies to consider investing in? Visit our blog now to find other helpful articles.