What Is Stellar (XLM): Everything You Need to Know in 2023

The cryptocurrency industry is growing at a fast pace. Just ten years ago, the world was not yet ready for the idea of a fully digital currency. Today, the situation has changed radically, and even the largest financial organizations use digital coins for cross-border transfers. One platform that provides this capability is Stellar.

Stellar Lumens (XLM) is a cryptocurrency that has been gaining more and more attention lately. The Stellar Network was developed with the idea of facilitating cross-border transfers, which also led to the creation of a native coin.

Today, we have prepared a guide where you can find out what Stellar Lumens and an XLM token are and whether it is worth investing in this altcoin. Let’s get started!

What Is Stellar Cryptocurrency?

Stellar is an open-source platform and a digital network for currency payments. The platform has been designed to make online transfers more convenient. At the same time, Stellar supports transfers of both digital and fiat currencies.

The Stellar platform team decided to use crypto technologies to achieve faster and more favorable transfers. The token was named Lumen. Hence the name Stellar Lumens, which is often used when referring to this cryptocurrency. Tokens allow you to achieve several goals. Lumens help improve security. The network requires a minimum number of tokens to be stored in an account to keep active — even a small amount of XLM can be used to ensure that the account remains open and usable. Some consider this security measure to be inconvenient, but it still serves the important purpose of ensuring that transactions on the network can be completed in less time and with greater efficiency.

Lumen was also issued as a native coin to help reduce the cost of transactions on the network. Currently, there is a fee of only 0.00001 XLM per transaction on the Stellar network. In addition, the account holder must have at least 1 XLM in their account if they wish to remain active online. This keeps fees low and ensures that the network is not used for suspicious transactions on a large scale.

Blockchain Platform Ecosystem

Like other cryptocurrencies and altcoins, the Stellar network is also built based on distributed ledger technology, blockchain. However, the Stellar platform ecosystem is slightly different from some other existing cryptocurrencies.

For example, tokens are not mined on the Stellar network, unlike Bitcoin. In 2015, when Stellar first announced the launch of the XLM token, 100 billion XLM was distributed to the network. A 1% annual increase in the number of tokens was observed until 2019 when a community vote led to a decrease in the number of XLM. Today, the maximum supply of XLM is limited to 50 billion tokens. The Stellar team has stated that it does not plan to issue any additional tokens, but some of the currently locked tokens will be released to the open market in the future.

There are currently about 26 billion XLM available in open circulation. Users can purchase these tokens on cryptocurrency exchanges. The rest of the lumens are currently owned by the Stellar Development Foundation.

The main purpose of the remaining lumens is to help in promoting, as well as in developing, the Stellar platform.

Key Benefits of Stellar

The Stellar platform can offer several key benefits for investors. The main advantage that anyone can enjoy is the support for multi-currency transactions. The function of cross-currency transactions has greatly simplified and accelerated the process of cross-border payments.

By making a transaction, you can buy XLM in fiat currency. The tokens are then sent to the recipient, who can convert them into their country’s fiat currency. In addition to speed, the Stellar network is also focused on keeping transaction costs low, which means that there are no expensive fees associated with online transfers.

Stellar (XLM) vs Ripple (XRP)

There are two popular cryptocurrencies that aim to provide payment solutions. These are Stellar and Ripple. Each of these networks can be used as a way to conduct multi-currency transactions. However, certain factors make them different from each other. XRP is an older cryptocurrency than XLM and can boast wider usage in traditional finance compared to Stellar. However, Stellar is a decentralized network, while Ripple has chosen a centralized system. For many users, decentralization is a key factor in favor of XLM.

The Stellar network focuses more on helping unbanked people access an efficient cross-currency payment system. This is a good solution for residents of regions where access to banking services is limited or very expensive. Ripple, in turn, pays more attention to working directly with banking institutions. Several banking organizations have already adopted Ripple as a way to transfer finances to other countries.

The fact that Ripple is now widely used in traditional financial sectors has made it a less volatile coin. At the same time, Stellar is still extremely volatile — it is one of the reasons why some people turn to other tokens during the transfer process.

Stellar vs Ripple

FeaturesStellar (XLM)Ripple (XRP)
Launch year20152012
Use caseFinance & PaymentsFinance & Payments
Degree of use in traditional financeMediumHigh

What Is Stellar (XLM) Crypto?

Each cryptocurrency is provided with a specific ticket ID, which makes it easier for users and institutions to use, monitor, analyze the market, etc. A ticket is usually only three characters long and is unique to a particular token or altcoin. XLM is the ticket ID that was used in the development of lumens, which are part of the Stellar network. Thus, when a person owns XLM or uses it in transactions, they are essentially buying, storing, shipping, or selling lumens on the Stellar network.

Despite the XLM token’s high volatility, reports show Stellar is doing well. In fact, if we refer to the statistics for the last five years, XLM is one of the most performing altcoins developed in recent times.

As mentioned before, the total supply of XLM is limited to 50 billion tokens, with more than 50% of the coins already in circulation. The main functions the XLM coin performs in the Stellar ecosystem are the following:

  • payment of commissions for blockchain transactions (0.00001 XLM per transaction);
  • account management on the Stellar network (to activate the transfer feature, you must have at least 1 XLM in your Stellar wallet);
  • unit of exchange in the Stellar blockchain;
  • an intermediate currency used to provide liquidity for any tokens issued on the Stellar network.

Stellar (XLM) Overview

XLM Price $0.1057
XLM Price Change 24h+0.60%
XLM Price Change 7d-2.69%
XLM Market Cap$2,824,092,751
XLM Circulating Supply26,707,986,078 XLM
XLM Trading Volume 24h$56,119,405
XLM All-Time High (ATH)$0.9381
XLM All-Time Low (ATL)$0.001227

What Is Stellar (XLM) Used For?

Stellar is an open-source network. It is a decentralized blockchain system designed to help people make domestic or cross-border transfers. At the same time, transfers are carried out quite quickly and simply.

The Stellar network can be used for two main purposes:

  1. The network offers a money transfer solution. These can be local transactions (for example, when paying for goods or services), as well as for transferring money to people in other countries.
  2. The Stellar network not only helps people transfer money but can also be used as a way to store value. You can easily buy a certain amount of XLM tokens to store money securely in your cryptocurrency wallet. This money can then be used as an investment by selling XLM tokens as the Stellar network grows and the value of lumens increases.

Stellar was also created as a tool for payment solution developers. A number of tools are provided to help developers integrate network and payment functionality into their software products.

Stellar (XLM) Price

Even though the current value of XLM is well below $1, the token has already shown significant promise. Over the past month, the coin has increased by 27.91% in price. By 2026, the price of XLM is expected to cross the $1 mark. Like most other cryptocurrencies, the coin is highly volatile. Still, since the founding of the Stellar network, XLM has shown steady growth.

All-Time XLM Price Chart

Should I Buy Stellar (XLM)?

XLM, as an altcoin in the cryptocurrency market, has its pros and cons. Before adding tokens to your investment portfolio, study in detail the advantages and also take into account the disadvantages.

If you are looking for a cryptocurrency for domestic or cross-border fund transfers, the Stellar network might be a good choice. Given the active platform’s development, the token’s rate is growing, and XLM is actively used for investment. As various new network updates are introduced, and as the use cases for Stellar increase, the price of XLM is showing good growth.

On the other hand, the instability and high volatility of the token price create risks for using XLM as an investment instrument. This feature is important to take into account if you are looking for a long-term investment. Still, most cryptocurrency experts agree that XLM will rise in price in the next few years.

Where to Buy Stellar (XLM): Switchere Exchange

If you’re wondering where to buy XLM, you should definitely think about buying it at Switchere. On our platform, you have an opportunity to buy XLM in the fastest and most convenient way. Moreover, we offer some surprising bonuses! Users of our platform enjoy a 0% service fee for the first order.

How to buy XLM with USD? At Switchere, you can buy crypto for fiat money or swap crypto for crypto. In addition to traditional purchases with a bank card, you can use alternative payment methods available (SEPA, SOFORT, Apple Pay, Google Pay, and local Asian banks).

Here is an easy step-by-step guide on buying XLM at Switchere!

  • Visit our website and log in to your account.
  • Choose the currency pair for exchange as well as a payment method and enter the amount. Don’t forget to check the transaction details by clicking on ‘Details.’ Once you’ve done, click the ‘Buy’ button.
  • Specify your Stellar wallet address and Memo ID and click on the ‘Buy’ button.
  • Enter your card details and click on the ‘Pay Now’ button. Please take into account that you have a limited amount of time to send your funds. Elsewise, the transaction will be canceled automatically.
  • Once you send the funds and your transaction receives the required number of blockchain confirmations, the amount of purchased XLM will be sent to your provided wallet address accordingly.
  • Congratulations! The transaction is completed, and now you can check your Stellar wallet.

Usually, Switchere transactions take 5-30 minutes. If you have any issues with the exchange process, let us know at [email protected]


Stellar (XLM) is an altcoin that has gained a lot of popularity. Being released in 2015, the coin has taken leading positions in the rankings over time. The XLM token’s high volatility is a risk factor for such an investment, so make sure to weigh the pros and cons of such a choice in advance.

Overall, many believe that Stellar Lumens and the XLM token look promising. However, we recommend carefully planning your investments and assessing all the risks before investing in XLM.

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