Some projects in the cryptocurrency world, although independent, are interrelated. One example is Litecoin, commonly referred to as Bitcoin’s little brother. There are more such stories and this time we will look at one of them, called Stellar (XLM).
A brief history and technical aspects of Stellar (XLM)
The origin of Stellar (XLM) dates back to 2013. Its creator is Jed McCaleb, who in earlier years worked with Ripple (XRP). You can learn more about it in the article titled “What is XRP?“. Years of working for Ripple encouraged Jed McCaleb to start his own project. His own but built on the XRP source code. Thus, Stellar was born. Due to the genesis of its birth, it is often referred to as a descendant of XRP.
Operating on XRP source code did not last long, however. After a few months, there were problems that could be solved by creating its own individual ecosystem. Consequently, the Stellar Consensus Protocol algorithm, developed by Professor David Mezeries, was launched in 2015.
Stellar is a project driven by ideas. The most important of these is the fight against financial exclusion. The main goal of the developers of its ecosystem is to create a global, decentralized network of financial services. Thus, Stellar boasts a system of instant international payments. Using a simple system we are able to send funds in one currency to the ecosystem and send them to an account settled in another currency. The whole operation takes no longer than a few seconds.
Stellar is a currency creation for national central banks. A great success, which reverberated in the blockchain world, was the establishment of Stellar in early 2021. This was done with the cooperation of the Ukrainian Ministry of Digital Transformation. One of the more recognised cryptocurrencies in the world, becomes the basis for building a socially tangible system.
The project is based on its own token with the abbreviation XLM. In order to be a participant of the Stellar network and fully benefit from its possibilities, you need to have a small amount of this cryptocurrency in your wallet. At the time of writing this article, there are over 22 billion of the intended 50 billion tokens in circulation. Interestingly, the coin is inflationary, with growth designed at 1%.
Price development of Stellar (XLM)
When observing the price action of Stellar (XLM), it mirrors the movements present in the XRP chart. This reinforces the sense of a sort of closeness between the two projects. The strong correlation is often exploited by market speculators.
XLM recorded the first of its key peaks on May 21, 2017. It reached a price of $0.06 at that time. The low liquidity of the project at that time caused it to fall into a strong correction, completed and confirmed by a new breakout in November the same year. This move allowed XLM to reach a new peak and key All Time High on January 3, 2018. It reached just under $0.88. At the time of writing this article, XLM has not yet broken through its all-time high, but is nevertheless successively shorting its way to it.
The capabilities of Stellar (XLM)
Stellar (XLM) is a cryptocurrency that aims to touch on some of the most real problems users face in the financial world and solve them in the best way possible. Stellar is also about global banking. In this area, the descendant of XRP, is even becoming its competitor. By creating CBDC, Stellar is expanding its position in the cryptocurrency market. We think that through its strong involvement in global finance, we will hear about it more often.