Stellar (XLM)

Overview

Stellar (XLM) is a peer-to-peer (P2P) decentralized network created in 2014 by The Stellar Development Foundation, or Stellar.org. The network officially launched in 2015 with the purpose of connecting the world’s financial systems and ensuring a protocol for payment providers and financial institutions. The platform is designed to move financial resources swiftly and reliably at minimal cost. Stellar links people, banks, and payment processors and allows users to create, send, and trade multiple types of crypto.The basis of the network is its native digital currency — XLM, or Lumens. XLM acts as an intermediate currency for operations and is also used to pay transaction fees. How it works: the protocol converts money in a few seconds, first into XLM and then into the requested currency.

Founders

Jed McCaleb co-founded Stellar with lawyer Joyce Kim in 2013 after leaving Ripple due to disagreements over its future direction. In 2020, McCaleb explained that Stellar’s design allows fiat currencies, other forms of value, and crypto assets to operate in parallel, aiming to drive mainstream adoption. His goal is to simplify the process of moving fiat into crypto and eliminate the friction in global money transfers. McCaleb is currently the CTO of Stellar and co-founder of the Stellar Development Foundation, a non-profit organization focused on making money more fluid, markets more open, and empowering people.

USP

Transaction fees are a major concern for many, with high costs affecting both fiat-based payment systems like PayPal and blockchains like Bitcoin and Ethereum due to congestion. Stellar stands out by offering a transaction fee of just 0.00001 XLM, ensuring users keep more of their money. Additionally, Stellar has formed significant partnerships, such as with IBM to launch World Wire, enabling large financial institutions to use the Stellar network and bridge assets like stablecoins. Unlike other blockchains, Stellar empowers its community by allowing users to vote on which projects should receive grants to support ecosystem growth.

Technical Analysis

The XLM/USDT daily chart shows a parabolic rise in late 2024, followed by consolidation within a descending channel, resembling a potential bull flag pattern. Volume surged during the rally but has declined in the consolidation phase, which is typical of such patterns. The RSI is near neutral at 50.03, with a slight bullish tilt as it crosses above its moving average. Immediate support lies near $0.35 and the channel’s lower trendline, while resistance is at the upper trendline and the recent high of $0.50. A breakout above the channel with strong volume could confirm a bullish continuation toward $0.65–$0.70 and beyond, while a breakdown below $0.35 might trigger a bearish move toward $0.25–$0.30.

XRP Monthly Price Return Analysis Since Launch

Image source: Cryptorankio, TradingView, coinmarketcap