Stellar (XLM) — The People's Payment Network
While XRP targets banks, Stellar targets everyone else — especially the 1.4 billion people worldwide without access to traditional banking. Built by the same co-founder who started Ripple, Stellar is a non-profit blockchain designed to make money move as easily as email. Here's the full story.
⚡ Quick Summary
- ✅Stellar (XLM) is a Layer 1 blockchain built for fast, cheap cross-border payments
- ✅Created by Jed McCaleb (co-founder of Ripple) — governed by a non-profit
- ✅Transactions settle in 3–5 seconds for a fraction of a cent
- ✅Partners include IBM, MoneyGram, and Franklin Templeton
- ✅Supply capped at 50 billion XLM (after burning 55B tokens in 2019)
- ✅All-time high: $0.9381 (Jan 4, 2018)
Stellar Price Statistics
XLM has historically traded in the low cents to sub-dollar range. Despite real partnerships and usage, its price has often lagged behind more hyped projects.
| Metric | Price (USD) | Date / Period |
|---|---|---|
| Current Price | $0.345 | Refreshed on page load |
| All-Time High (ATH) | $0.9381 | Jan 4, 2018 |
| 1-Year High | $0.636 | Last 12 months |
| 1-Year Low | $0.082 | Last 12 months |
| All-Time Low (ATL) | $0.001227 | Nov 18, 2014 |
Price data sourced from CoinGecko. Historical figures are approximate.
What is Stellar?
Stellar is a decentralized payment network designed to make it cheap, fast, and easy to send money across borders. It was built with a clear mission: connect the world's financial infrastructure so that money can move as freely as information on the internet.
Here's the problem Stellar solves: if you're in Nigeria and want to send $200 to family in the Philippines, you'd typically use a service like Western Union — which takes days and charges 5–10% in fees. With Stellar, you can convert Nigerian naira to XLM, send it in 3–5 seconds, and the recipient converts it to Philippine pesos — for less than a penny in fees. The built-in decentralized exchange matches currency pairs automatically.
What makes Stellar special compared to other payment blockchains is its non-profit governance. The Stellar Development Foundation (SDF) isn't trying to maximize profit. They're trying to build inclusive financial infrastructure. This ethos shows in everything — from the open-source code to the focus on developing markets and USDC integration.
Stellar at a Glance
The History of Stellar
Stellar's origin story is one of the most interesting in crypto because it begins with a breakup. Jed McCaleb co-founded Ripple (XRP) in 2012, but he left in 2013 over disagreements about the project's direction. McCaleb felt Ripple was becoming too focused on serving big banks, and he wanted something that served regular people — especially the unbanked. So he created Stellar.
It's worth noting that McCaleb also co-founded Mt. Gox, the Bitcoin exchange that famously collapsed in 2014 after losing 850,000 BTC to hackers. However, McCaleb had sold Mt. Gox to Mark Karpelès in 2011, well before the hack. His role in crypto history is complex — he helped create some of the industry's most important projects (and one of its biggest disasters).
The decision to make Stellar a non-profit was intentional and unusual in crypto. The SDF holds a significant amount of XLM to fund operations and grants, but there are no shareholders expecting returns. This structure means Stellar's team can focus on building useful infrastructure without the pressure to pump the token price.
Key Events Timeline
Jed McCaleb (co-founder of Ripple/XRP) and Joyce Kim launch Stellar as a fork of the Ripple protocol. The Stellar Development Foundation (SDF) is established as a non-profit.
Stellar launches its own consensus protocol — the Stellar Consensus Protocol (SCP) — replacing the original Ripple-based code. Partnership with Deloitte for cross-border payments.
Stripe invests in Stellar. The network sees early adoption for remittances in developing countries, particularly in Nigeria and the Philippines.
IBM partners with Stellar to build a cross-border payments solution for South Pacific banks. XLM price rises from $0.002 to $0.91 during the bull run.
XLM reaches all-time high of $0.9381 in January. SDF burns 55 billion XLM (over half the supply) to reduce future inflation and increase scarcity.
Stellar burns 55 billion tokens, reducing total supply from 105B to 50B. Ukraine selects Stellar for its CBDC pilot project.
Wirex (crypto debit card) integrates Stellar for USDC payments. Franklin Templeton launches a tokenized money market fund on Stellar — a first from a major asset manager.
Stellar becomes the first major blockchain to achieve Shariah compliance certification. MoneyGram partners with Stellar for USDC-based remittances. XLM reaches $0.79.
MoneyGram Access launches on Stellar — allowing cash-to-crypto conversion at MoneyGram locations worldwide. SDF focuses on real-world payment infrastructure.
Smart contracts launch on Stellar via Soroban — a major technical upgrade bringing DeFi capabilities. Franklin Templeton expands tokenized assets on the network.
Stellar's Soroban smart contracts attract DeFi projects. XLM sees renewed interest as institutional adoption of tokenized assets grows.
What is Stellar Used For?
🌍 Cross-Border Payments & Remittances
This is Stellar's core use case. The network enables near-instant, nearly-free cross-border transfers. Through partnerships with MoneyGram, users can convert local currency to USDC on Stellar, send it across borders, and cash it out at MoneyGram locations. This is transformative for the ~$800 billion global remittance market where fees average 6%.
🏛️ Tokenized Real-World Assets
Franklin Templeton, one of the world's largest asset managers ($1.5T+ AUM), uses Stellar for its tokenized money market fund. This is significant — a traditional finance giant chose Stellar over Ethereum for tokenizing real assets. Other financial institutions are exploring similar integrations.
💵 Stablecoins (USDC)
Circle issues USDC natively on Stellar. Combined with sub-penny fees and 3-second settlement, this makes Stellar a strong alternative to TRON for stablecoin transfers — especially for those who prefer USDC's transparency over USDT.
🔄 Built-in Decentralized Exchange
Stellar has a native DEX built directly into the protocol — not a smart contract on top of it, but part of the core ledger. This means you can swap any asset issued on Stellar (USD, EUR, BTC representations, custom tokens) with near-zero fees and instant settlement.
📜 Smart Contracts (Soroban)
Launched in 2024, Soroban brings smart contract capabilities to Stellar for the first time. Built with Rust and WebAssembly, Soroban enables DeFi applications, DAOs, and complex financial products — while maintaining Stellar's low fees and fast settlement.
Stellar vs. XRP — Same Founder, Different Paths
Since Jed McCaleb co-founded both projects, the comparison is inevitable:
| Feature | Stellar (XLM) | XRP (Ripple) |
|---|---|---|
| Target Market | Individuals, developing world | Banks, large institutions |
| Governance | Non-profit (SDF) | For-profit (Ripple Labs) |
| Settlement Time | 3–5 seconds | 3–5 seconds |
| Smart Contracts | Yes (Soroban) | Hooks (limited) |
| Key Partnerships | IBM, MoneyGram, Franklin Templeton | Bank of America, SBI, Santander |
| SEC Lawsuit | No | Yes (settled 2023) |
Where to Buy XLM
XLM is available on all major exchanges. Here are the best options:
Can XLM Reach $1?
XLM actually already got close — its all-time high was $0.94 in January 2018. So $1 is not some far-fetched target; it's roughly a 3x from current prices (~$0.30) and well within historical precedent. But it's been over 7 years since that peak, which tells a sobering story.
| Price Target | Required Market Cap | Comparable To |
|---|---|---|
| $0.50 | ~$14.8B | Hedera / Cosmos range |
| $1.00 ⭐ | ~$29.5B | Solana / Avalanche range |
| $3.00 | ~$88.5B | Would be a top-5 coin |
| $10.00 | ~$295B | Ethereum-tier market cap |
The math shows $1 is plausible in a strong bull market — but XLM has consistently failed to hold gains between cycles. Its non-profit structure and focus on real-world use cases may limit speculative hype compared to flashier Layer 1s. XRP solves a similar problem with more liquidity and brand recognition, which is XLM's biggest competitive headwind.
How to Store XLM
Stellar requires a minimum balance of 1 XLM in any wallet to keep it active — this is a network requirement, not a wallet rule. Learn more about self-custody in our wallet guide.
🔥 Hot Wallets
LOBSTR (official Stellar wallet), Exodus (multi-coin desktop), Trust Wallet (mobile). Solar Wallet is another Stellar-native option.
Pros and Cons of Stellar
✅ Pros
- Near-zero fees — fractions of a cent per transaction
- 3–5 second settlement — among the fastest blockchains
- Real partnerships — IBM, MoneyGram, Franklin Templeton
- Non-profit governance — focused on mission, not profit
- USDC native support — backed by a transparent stablecoin
- No SEC issues — regulatory clarity compared to XRP
- Smart contracts — Soroban brings DeFi capabilities
❌ Cons
- Price underperformance — XLM has lagged other top coins
- Less hype — gets less attention than flashier projects
- Large SDF holdings — foundation controls significant supply
- XRP overshadows — bigger, more liquid, same use case
- Late to smart contracts — Soroban launched 2024 (years after competitors)
- Founder history — McCaleb's Mt. Gox connection raises questions
⚠️ Investment Warning: XLM has significantly underperformed Bitcoin and most altcoins since its 2018 ATH of $0.94 — it's still trading more than 65% below that level over 7 years later. Stellar has genuine institutional usage, but real-world adoption doesn't always drive token price appreciation. Always do your own research and never invest more than you can afford to lose.
Frequently Asked Questions
Is Stellar the same as XRP?
Is XLM a coin or a token?
Who created Stellar?
Why did Stellar burn 55 billion tokens?
What is Soroban?
Is Stellar good for sending money internationally?
Is Stellar a good investment?
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