Buy Stellar (XLM): price and forecasts

Why buy Stellar?

If you’re considering buying Stellar, you should know that the long-awaited release of its smart contracts is expected in 2024. This technological advancement will enable new possibilities for decentralized applications on the platform, offering greater flexibility for financial services. Although the launch was delayed to address some bugs, the integration of smart contracts marks a significant turning point for Stellar, allowing it to compete with established blockchain platforms like Ethereum.

Additionally, Stellar has formed partnerships with MoneyGram and Franklin Templeton to enhance the accessibility of cross-border payments and to facilitate the use of stablecoins, such as EURC, issued by Circle. The core mission of this DeFi protocol remains focused on providing financial services to the unbanked, or those who lack access to traditional banking services.

In November 2024, Stellar (XLM) experienced remarkable growth, with a 450% increase, peaking at around USD 0.65. This surge can be partly attributed to the rising adoption of the protocol for cross-border payments and the integration of stablecoins like EURC. These developments have sparked increased interest in Stellar, fueled by technological innovations and strategic partnerships that strengthen its position in the decentralized financial services sector.

What is Stellar?

Stellar can be seen as a half-sister to Ripple, as both were created by Jed McCaleb. However, Stellar is not designed to serve as a direct payment method. Instead, it functions as an intermediary in the conversion of currencies. With Stellar, it is possible to send traditional currency from one part of the world to another through blockchain technology, utilizing a complex tokenisation system. This innovative technology has a significant impact in the real world, particularly in countries where access to the financial system is nearly non-existent.

The cryptocurrency associated with the Stellar blockchain is called XLM. It serves as an ‘anti-spam’ tool, helping to protect the network from malicious actors attempting to overwhelm it with Denial-of-Service (DoS) attacks. Additionally, all accounts on the Stellar network are required to maintain a minimum balance of 0.5 XLM. This requirement encourages users to keep the blockchain clean by closing inactive accounts, ensuring that all accounts using Stellar are economically viable.
Stellar aims to ‘make money more fluid, markets more open, and people more independent’. Supervising the project, in addition to Jed McCaleb, is the Stellar Development Foundation. The SDF is a non-profit foundation founded in 2014 specifically to oversee the development of Stellar.