Stellar (XLM)

What is Stellar?

Stellar is a layer-1 payment network designed for fast and low-cost value transfers across the globe. The project was launched in 2014 by founders Jed McCaleb and Joyce Kim to facilitate efficient digital transactions. It operates using the stellar-consensus-protocol, which allows the network to process operations without relying on traditional proof-of-work mining. The primary use cases for the native asset, known by the ticker XLM, involve facilitating cross-border payments and remittances between different fiat currencies. Currently, the Stellar network maintains its position as a prominent payment-network infrastructure within the broader digital asset ecosystem, ranking sixteenth by market capitalization.

How does Stellar work?

The Stellar network operates on a unique mechanism known as the stellar-consensus-protocol to validate and secure all network activity. This specific consensus model relies on a federated voting system rather than energy-intensive mathematical puzzles. Through this approach, the network achieves agreement on the state of the ledger quickly and efficiently.

Participants in this ecosystem include various nodes that communicate with one another to maintain the shared ledger. Instead of traditional miners, the network utilizes trusted validator nodes to confirm the legitimacy of proposed operations. These validators work together in overlapping groups to ensure that no single entity controls the entire payment-network.

When a user initiates a transfer, the transaction flows through these interconnected nodes for rapid verification. The stellar-consensus-protocol settles these transactions in a matter of seconds, updating the ledger permanently. This streamlined flow allows the native XLM asset to function effectively for cross-border payments and asset issuance.

Stellar use cases

Stellar tokenomics

The tokenomics of the Stellar network are defined by a fixed maximum supply model for its native XLM asset. According to the network parameters, the absolute maximum supply is capped at 50001806812 tokens. Out of this total limit, the current circulating supply stands at 34840249959.7202 tokens available within the active market. This means that a significant portion of the total supply is already in circulation, supporting the network's primary functions such as cross-border payments and asset issuance. The stellar-consensus-protocol does not rely on traditional mining rewards to generate new coins, which fundamentally shapes how the remaining supply is managed and distributed over time. The fixed maximum supply ensures that no additional XLM can ever be created beyond the established protocol limit.

Stellar price history & milestones

The Stellar network launched in 2014 to provide a layer-1 payment-network for fast and low-cost value transfers. Shortly after its initial introduction to the market, the native XLM token recorded its all-time low price of $0.001227 on 2014-11-18. As the network expanded its focus on cross-border payments and remittances, the asset experienced significant historical volatility. During a period of widespread market activity, the token eventually reached its all-time high price of $0.9381 on 2018-01-04. Since establishing that historical peak, the asset has continued to trade based on its utility within the digital economy. Currently, Stellar maintains a prominent position in the cryptocurrency landscape, holding the rank of 16 by overall market capitalization.