Ready for Liftoff: 3 Things You Need to Know About Stellar Lumens (XLM)

Stellar Lumens (XLM)–Sitting comfortably in the twelfth spot for total market cap, XLM has risen from relative cryptocurrency obscurity to one of the most dominant coins on the marketplace. Less than two weeks ago, Lumens were trading for under a nickel and commanded only $775 million in total value. As of writing, the price-per-coin has skyrocketed to $0.15 with a market cap of $2.5 billion. While most altcoins have been crushed this week with the surging price of bitcoin, XLM has managed a steady gain over the last several days.

What are Lumens?

Stellar is the name of the open-source technology designed to be a distributed payment system. Like Bitcoin and other cryptos, it utilizes a decentralized, blockchain protocol that allows for the transfer of money across borders and around the world in a fast, secure and cost-effective manner. Similar to the relationship between Ripple and XRP, Lumens are the native asset, crypto-currency which operates within the Stellar network. Lumens can be used in the exchange process, shifting money quickly across multiple currencies in a single transaction. The hope is for Lumens to be a valuable asset in the developing world, given its low transaction cost (0.00001 lumens per transaction) and speed (2-5 seconds).

Like XRP, the purpose of the Lumen coin is to offer liquidity in the transaction process occurring on the Stellar network. In cross-border transactions or those involving multiple currencies, the transfer of fiat to Lumen and back again provides individuals and businesses with a faster and cheaper method than using traditional payment services. Because of this reliance upon liquidity, Stellar Lumens are a large-supply crypto with a circulating supply of 17.8 billion XLM and a max supply of 100 billion. From an investment standpoint: don’t expect the price to hit $1 any time soon. While the coin has managed significant gains over the last two weeks, the price will likely stabilize as the fear-of-missing-out subsides and investors in search of exponential gains move on to another coin. However, XLM has long-term potential as the crypto-market continues to grow. With $2.5 billion already invested, Stellar is building a case as another large-supply, low-cost coin to compete with the market leader Ripple.

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