Fast, Cheap and maybe more developments in the pipeline
Today I want to look at Stellar (with the ticker XLM). When I first got into crypto about five years ago I didn’t know much about XLM, but I used it all the time as a very inexpensive method for sending crypto; the transaction costs are tiny and very fast. Today I still use XLM, along with XRP, as my primary choice for sending cryptocurrencies.
I’m going to give some simplified background on the token, as well as some recent news which makes me optimistic for the long-term for the coin.
Understanding Stellar (XLM) in Simple Terms
Stellar (XLM) is part of a big network that allows people to create, send, and trade digital currencies.
Stellar is like a big digital marketplace. It lets developers create apps for businesses, where you can send money or trade different types of digital currencies. Imagine it as a global digital money hub that works really fast.
I buy and trade my XLM at Bitget. They also have some great staking options as well as launchpools.
Stellar was started in 2014 by Jed McCaleb. He initially cofounded Ripple (XRP) before the leaving the project in 2013. He wanted to create a better way for everyday people to use digital money. Now, it’s managed by a foundation that works to make sure everything runs smoothly.
In this digital marketplace (Stellar), the currency is called Lumens, or XLM. These Lumens are used to pay for transactions, kind of like a ticket to use the system. They’re also used to quickly trade between different digital currencies. For example, if you want to change dollars into pesos, Lumens help you do that super fast.
Have you tried this Crypto riddle yet? Test your knowledge of crypto logos…
Stellar vs. Ripple?
Some people might compare Stellar to Ripple. They’re similar because they were created by the same person, and they work in almost the same way. Both allow quick and almost free digital transactions, making them popular choices in the digital money world.
Stellar Lumens (XLM) Continues to Innovate with Non-Custodial Wallet
Stellar Lumens is set to launch a non-custodial crypto wallet in Q1 of 2024. Developed in partnership with Cheesecake Labs, this wallet will utilize the Stellar Network and MoneyGram’s Fiat on and off-ramp services, ensuring instant and secure transactions. Notably, users will not incur charges until June 2024. This development emphasizes Stellar’s commitment to enhancing user experience and accessibility in the digital finance realm.
Breaking News: BRICS Announces Three-Year Plan to End US Dollar Reliance
In a significant development, BRICS (Brazil, Russia, India, China, South Africa) through its bank, the New Development Bank (NDB), has revealed a three-year initiative to end reliance on the US dollar. This initiative aims to settle trades and local transactions in currencies other than the US dollar, marking a strategic move away from its dominance in the global financial sector. And Stellar investors are all wondering: Will BRICS adopt XLM?
NDB’s Alternative Strategies
One strategy involves lending loans to developing countries in local currencies instead of the US dollar. This approach puts pressure on the dollar, gradually decreasing its demand, although the impact is expected to be gradual.
Potential Economic Shift by 2026
If BRICS successfully reduces its reliance on the US dollar, it could potentially reshape the global financial landscape by 2026. This shift could lead to a change in the balance of economic power, with developing nations taking a more prominent role. Currently, BRICS collectively controls 30% of the global economy, a number that could increase significantly if their plans to reduce dollar reliance are successful.
Impact on US Economy and Global Markets
If BRICS ceases using the US dollar for trade, it could adversely affect the American economy, potentially causing a significant economic impact. Such a scenario might lead to fluctuations in commodity prices, including digital assets like XRP and XLM, causing economic imbalances globally.
The Path to a New Global Reserve Currency
The final outcome of BRICS’ strategic move could usher in a new era where local currencies dominate international financial transactions. Speculation arises regarding which currency might emerge as the next global reserve, with XRP and XLM being potential contenders due to their growing prominence in the market.
Market Cap of Stellar ($XLM)
As of October 2023, the market cap of XLM is around $3 billion, making it one of the top 30 cryptocurrencies by market cap. This indicates that there is significant interest in Stellar as an investment option. However, it is important to note that the cryptocurrency market is highly volatile, and the value can fluctuate rapidly.
- My most recent article: my-defi-investment-round-up-october-2023
- You can join my Telegram group here or connect with me on Twitter here or follow me on YouTube here.
- Follow me on Medium if you want to read more about cryptocurrency, passive income, play to earn games and yield farming.
- I’m not a financial advisor. This is not a financial advice, whatever you read in my articles are strictly for educational purposes.
- This article contains affiliate links.
Disclaimer: This is not financial advice, the information in this article is for educational purposes only. Never invest what you can’t afford to lose. I disclaim any liability or loss incurred by any person who acts on the information, ideas, or strategies discussed in my articles. Do Your Own Research.