What is Stellar (XLM)?
What is Stellar (XLM)?
Launched in 2014, the Stellar (XLM) network is an open-source protocol designed to facilitate fast, low-cost cross-border money transfers using digital assets. XLM, also known as Lumens, is the network’s native cryptocurrency.If you want to buy or sell XLM, you can use the Abarai cryptocurrency exchange platform. You’ll benefit from fast transfers and a simple interface that’s easy to use even if you’re a beginner.It’s important to distinguish between Stellar, the blockchain network, and Lumens (XLM), the native token that powers it. Stellar’s primary goal is to enable financial transfers of any kind—whether dollars, euros, cryptocurrencies, or other digital assets such as gold or stocks. The platform was designed to offer reliable payment solutions for both everyday users and businesses, delivering fast transactions at extremely low cost.
Who founded Stellar?
The Stellar project was co-founded by Jed McCaleb in 2014. He is a prominent figure in the crypto world, having played key roles in other impactful initiatives. Notable highlights include:- Creating the first major Bitcoin exchange: Jed McCaleb founded Mt. Gox, the first large-scale Bitcoin exchange.
- Ripple: McCaleb also served as Ripple’s CTO before deciding to develop Stellar, motivated by the desire to deliver a more decentralized, consumer-focused solution.
Key benefits of Stellar:
- Near-instant transactions: Most transactions are processed in under five seconds.
- Low costs: The minimum fee is just 0.00001 XLM per transaction.
- Support for diverse assets: Transfers across fiat currencies, cryptocurrencies, and other digital assets.
- Decentralization: Anyone can become a validating node using the Stellar Consensus Protocol (SCP).
How does Stellar (XLM) work?
How does Stellar (XLM) work?
Stellar uses a decentralized network of interconnected servers. Unlike Proof-of-Work blockchains (such as Bitcoin), Stellar relies on the Stellar Consensus Protocol (SCP) and delivers much faster, more efficient processing.
What is the Stellar Consensus Protocol (SCP)?
SCP is a federated consensus mechanism that lets the Stellar network validate transactions quickly and securely without the massive energy requirements found in other blockchains (e.g., Bitcoin). Rather than miners competing to solve complex math problems, SCP enables sets of trusted nodes to reach agreement on transactions.Advantages of SCP:
- Extreme speed: Transactions are confirmed in just a few seconds—no more waiting 10 minutes (or longer) for validation!
- Minimal fees: Stellar’s transaction costs are near zero, making the platform highly accessible.
- Low energy usage: Unlike Bitcoin or Ethereum mining, SCP is extremely energy-efficient.
- Scalability: Easily handles a large number of transactions without slowing down.
- Security: SCP combines trust in selected validator nodes with quorum mechanisms to keep the network safe.
How does SCP work?
SCP involves several defined steps and key concepts such as validator nodes, “anchors,” and “quorum slices.” 1. Validator NodesStellar relies on a relatively small set of validator nodes. These are run by trusted organizations and entities such as universities, companies, or foundations.Role of nodes: They verify and approve transactions while keeping the network decentralized and efficient.2. AnchorsA unique concept in the Stellar network is the use of “anchors.” Anchors act as bridges between the fiat and digital worlds. They issue digital assets (such as stablecoins) backed by deposits of traditional money and ensure smooth transfers between the two. Stellar thus connects different currencies and financial assets, enabling fast and efficient transactions.For example, if someone deposits dollars with an anchor, that anchor can issue a digital equivalent on Stellar, which can be easily traded against other assets.3. The SCP consensus process- Transaction proposal: A user initiates a transaction, which is broadcast to the Stellar network.
- Voting: Validator nodes start voting on the transaction’s validity. Each node has its own list of trusted nodes (its “quorum slice”).
- Reaching quorum: A transaction is considered valid only if a sufficient number of nodes across the relevant quorum slices agree. Not every node in the entire network must vote—only those within the overlapping quorum slices.
- Finalization: Once quorum is achieved, the transaction is confirmed and added to the ledger.
What makes Stellar unique?
Stellar stands out in a crowded crypto field thanks to its complete feature set, including:- Full decentralization: Anyone can become a validator node, increasing security and transparency.
- Near-zero fees: Ultra-low fees make Stellar economically efficient for everyday transactions.
- Multi-asset support: Ideal for cross-border transfers across fiat, crypto, and other assets.
- Fast transactions: No more waiting for endless confirmations.
Stellar (XLM) Functions
Stellar (XLM) Functions
Stellar is more than a blockchain network—it’s a versatile platform offering multiple capabilities, such as:
Fast, low-cost cross-border transfers
This is Stellar’s best-known use case. The network lets you send money anywhere in the world in just seconds and at very low cost:- Low fees: A transaction costs a fraction of a cent—far cheaper than traditional banking systems or services like Western Union.
- Impressive speed: While international bank wires can take days, Stellar settles almost instantly.
Issuing digital assets (tokenization)
With Stellar, you can create and manage digital assets that represent any form of value:- Fiat currencies like USD, EUR, or JPY can be issued as stablecoins on Stellar.
- Other assets—bonds, stocks, or loyalty points—can also be tokenized.
Decentralized exchange
Stellar includes a built-in decentralized exchange (DEX):- Trade assets directly on-chain without intermediaries.
- Instant swaps across different assets, simplifying currency conversions.
Micropayments
Extremely low transaction costs make Stellar ideal for micropayment processing:- Micropaywalls: Media platforms can monetize access to premium content.
- Micro-rewards: Loyalty apps can reward users with small amounts directly over the network.
Building financial apps
Stellar provides an open-source platform for developers creating innovative financial applications:- Digital wallets
- Remittance platforms
- Lending services
Creating and issuing stablecoins
Thanks to its tokenization capabilities, Stellar can be used to create stablecoins—cryptocurrencies pegged to a stable asset or currency. A prime example is USDC, one of the most widely used stablecoins on the Stellar blockchain.Improving access to financial services
A core Stellar goal is financial inclusion. In underbanked regions, Stellar offers a viable, smartphone-accessible way to send/receive money and access basic financial services.Interoperability
Stellar acts as a bridge across financial systems, enabling conversion and transfer of value between currencies and platforms. This helps integrate traditional economies with new blockchain technologies.
How much does XLM cost? XLM price history
How much does XLM cost? XLM price history
Early period (2014–2017)
- Launch (July/August 2014): Stellar launched at a very low initial price—below $0.01. This was the early build-out phase focused on technology and community growth.
- 2015–2016: The Stellar price remained relatively stable below $0.01, with minor fluctuations. For example, in spring 2015 there was a brief rise to around $0.005–$0.006, followed by a return to lower levels.
- 2018: After the early-year peak, Stellar corrected sharply, falling below $0.20 by year-end—part of the broader “crypto winter.”
- 2019–2020: XLM generally ranged between $0.05 and $0.10 with no major rallies. Even so, ongoing partnerships and tech improvements helped keep XLM relatively stable.
- Early 2021: Crypto demand rose sharply again, and Stellar benefited. XLM surpassed $0.50 in February 2021 and peaked above $0.70 in May 2021, bringing many new investors to the market.
- Late 2021–2022: XLM followed the broader crypto trend down, falling below $0.20 amid bearish sentiment and heightened volatility.
- 2023: Marked by notable swings, with XLM trading roughly between $0.10 and $0.15 as investors reassessed Stellar’s outlook.
- 2024: XLM began to trend higher, supported by fresh initiatives and growing interest in Stellar’s solutions.
- May 2025: XLM has traded around $0.30–$0.315, marking a notable recovery and suggesting renewed confidence in the technology and long-term prospects.
Factors that influence XLM’s value
Factors that influence XLM’s value
XLM supply and demand in the crypto market
When demand exceeds supply—i.e., more investors want to buy XLM than sell it at a given price—buying pressure tends to push XLM higher.When supply exceeds demand—i.e., more investors want to sell XLM than buy it at a given price—selling pressure tends to push the price lower.SDF (Stellar Development Foundation) policy
SDF decisions on token distribution play an important role in price stability and trajectory. If SDF limits supply or optimizes distribution, this can affect XLM’s price. If supply stays constant while demand rises, XLM’s price tends to increase.Ecosystem developmentStellar’s success depends heavily on adoption by financial institutions, companies, and individual users. Its utility for fast, low-cost cross-border payments and asset issuance supports demand for XLM.Strategic partnerships with major entities have been—and remain—crucial for XLM’s value. Collaborations with IBM and MoneyGram, for example, have strengthened investor confidence and boosted demand. When Stellar announced its partnership with IBM for cross-border payment solutions, online enthusiasm spiked across Twitter, Reddit, and elsewhere, and XLM’s price saw a notable rise around that period.Technology upgrades can also have major impact. The launch of Soroban smart contracts, for instance, promises to expand Stellar’s functionality and attract more users and developers.Stellar’s ability to solve real-world problems
Another key factor is Stellar’s real-world utility. The network’s ability to deliver fast, low-cost remittances worldwide is a prime example. The more companies and users choose Stellar for financial needs, the stronger the demand—and value—for XLM.Overall crypto market sentiment
Like most altcoins, XLM is influenced by broader crypto trends. In bull markets, assets like XLM tend to rise with the tide; in bear markets, XLM can face significant corrections.Social media and press
Crypto projects that generate positive news on social networks or in the media tend to attract more investors. Conversely, negative headlines (e.g., a security vulnerability, a failed partnership, unfavorable regulation) can have the opposite effect by increasing selling pressure.Official X accounts you can follow:- @StellarOrg: Official account of the Stellar Development Foundation (SDF): news, announcements, partnerships, and initiatives.
- @StellarX: Account for a decentralized trading platform (DEX) built on Stellar; covers the trading ecosystem.
- @ultrastellarhq: Ultra Stellar, a company building services on Stellar, including a DEX and other tools.
- @DenelleDixon: CEO of the Stellar Development Foundation.
Advantages of investing in Stellar (XLM)
Advantages of investing in Stellar (XLM)
Profit potential from price appreciation
As with any cryptocurrency, one of the key reasons to invest in XLM is the potential for significant gains over time. Buying XLM at an attractive price and holding until its value rises can yield profit upon sale. A well-defined strategy and staying informed help you time entries and exits.Earning passive income via yielding
A notable benefit of holding XLM is the opportunity to earn passive income through “yielding.” Various platforms—centralized today, potentially more decentralized in the future—let you “deposit” XLM and earn an annual percentage yield (APY).This passive income can take the form of:- Additional XLM rewards.
- Benefits in another crypto asset offered by the platform.
Participation in airdrops or reward programs
XLM holders can benefit from various airdrops and reward programs, typically organized by new projects built on or partnering with Stellar.How it works:- Holders may receive newly issued tokens on the network for free.
- Some programs reward using innovative services integrated with Stellar.
- Do thorough research: Understand Stellar Lumens’ technology, recent partnerships, and market direction.
- Choose reputable platforms: If you deposit XLM for passive income, ensure the platform is trustworthy.
- Diversify your portfolio: Buy XLM as well as other assets to reduce risk.
How to buy XLM on Abarai
How to buy XLM on Abarai
Looking for a fast, simple, and secure way to buy Stellar Lumens (XLM)? The Abarai platform offers an easy interface, low transaction fees, and Romanian-language support if you need help.
Why choose Abarai to buy XLM
Abarai streamlines crypto trading by removing common barriers found on other platforms. Here are a few reasons to choose Abarai:- Secure, instant transactions. No account or registration is required for transactions under 5000 RON in 90% of cases—just provide billing details.
- Guaranteed safety and privacy. For swap transactions you enjoy full anonymity. Once the trade is executed, funds are sent directly to your wallet. Abarai doesn’t custody your funds, can’t freeze your money, and even if the platform were hacked, you wouldn’t lose anything.
- Low, transparent fees. Abarai doesn’t charge hidden fees that could erode your returns.
- Romanian-language support. You can speak by phone with an Abarai expert if you have questions or need advice.
Step-by-step guide to buying XLM on Abarai
- Go to the Abarai website
- Select the cryptocurrency
- Enter the desired amount
- Provide your XLM wallet address
- Make the payment
- Receive your XLM safely