Stellar Lumens, known as XLM, is one of the most popular cryptocurrencies on the market. XLM is the native cryptocurrency of the Stellar block chain, a decentralized payment network made to make cross-border transfers fast and cheap. Since its start in 2014, XLM has gained a lot of buyers and traders who want to make money from the cryptocurrency’s growth and adoption potential.
This piece will examine the XLM price and the technology that makes it work. We will look at what affects the price of XLM, how it has been done in the past, and what we can expect in the future. We will also look at the its network, its features, and how it can be used. So, let’s get started.
What is mean by XLM?
If we talk about mean of XLM then you need to know it, is digital money that makes transactions on the their easier. This is an open-source block chain-based payment protocol that connects people, payment systems, and financial institutions to make cross-border transfers faster and cheaper. Jed McCaleb, who helped start another popular cryptocurrency called Ripple.
XLM was released in 2014 as a fork of the Ripple protocol, with a few changes to make it faster and easier to use. On the this network, XLM is used to pay for things and save money. It can be used to pay for goods and services, send money to other users, or hold an investment.
What’s different about XLM compared to other cryptocurrencies?
XLM is different from other coins in several ways. First of all, XLM is made to be a fast and efficient payment network. This means that deals can be completed in just a few seconds. This is much faster than other cryptocurrencies like Bitcoin, where transaction processing can take several minutes.
Second, XLM is made to be very scalable. This means it can handle many activities without slowing down or getting crowded. This makes it suitable for many payments, like transfers and payments between countries.
XLM is also made safe and not controlled by a single group. It uses the Stellar Consensus Protocol (SCP), a consensus method, to verify transactions and keep the network safe. SCP is a decentralized algorithm that lets nodes on the network agree on the ledger’s state without a single authority being needed.
Things that affect the price of XLM
Like all coins, the XLM price is affected by many things. Here are some of the essential things that can change the price of XLM.
Market demand
One of the most important things that affect the price of XLM is how much people want it. If people want XLM a lot, the price will increase, and vice versa. XLM’s demand can be affected by several things, such as how useful it is, how widely it is used, and how investors feel about it.
Adoption
The price of XLM can be affected by how many people, companies, and financial institutions use it. As more people use XLM for transactions, demand for the coin is likely to increase, which could increase its price. In the same way, if more financial companies start using XLM, its use, value as a way to pay, and value as a way to store value is likely to go up.
Competition
The price of XLM can also be affected by how well it does against other coins. If a rival cryptocurrency has a better value proposition or more uses than XLM, it could draw users and investors away from XLM, lowering its price.
Regulations
The rules about coins can also affect the price of XLM. If governments and regulators like cryptocurrencies set up a regulatory framework that helps them, it could boost investor trust and increase demand for XLM. On the other hand, if regulators are against cryptocurrencies or put in place strict rules, it can hurt investor trust and reduce demand for XLM, which can cause the price to go down.
The Price History of XLM
Since its release in 2014, the price of XLM has decreased significantly. Here is a short history of how much it has cost:
2014-2017
When XLM first came out in 2014, each coin cost about $0.002. Early in 2017, the price started to go up quickly, and by May of that year, it had reached a high of $0.09. But in June 2017, the price dropped sharply to about $0.02.
Early in 2018, the price of XLM started to go up again. In January 2018, it hit a high of $0.92. But the price fell sharply as the bitcoin market underwent a significant correction. By April 2018, XLM had dropped to about $0.20.
2019-2020
The price of XLM was stable, staying between $0.05 and $0.15 for most of the year.
In late 2020, the price of XLM started to go up again, and in November 2020, it reached a high of $0.41. The price then decreased slightly, but it didn’t change much for the rest of the year.
2021-2023
The price of XLM went up again at the beginning of 2021 and reached $0.43 in May 2021. But the price dropped rapidly; by July 2021, it was only worth about $0.20. Since then, the price has slowly gone up; as of April 2023, it was around $0.10.
Overall, the XLM price has changed significantly over the years, but it has also shown signs that it could grow and be used more.
Conclusion
In conclusion, the future of XLM will rest on several things, such as how many people use them, how rules are set up, and how much competition there is. As more companies and people see how good the network and its features are, the desire for XLM may increase, which could increase its price. But, as with any cryptocurrency, there are risks involved. Before investing, people should do their studies and talk to financial advisors.
