What is the Stellar coin XLM?

Figure:https://stellar.org/

Stellar coin (XLM) is the native cryptocurrency of the Stellar Network, created by Jed McCaleb, co-founder of Ripple, in 2014. The network is dedicated to building an open financial infrastructure to help banks, payment companies, and individuals transfer assets quickly and affordably on a global scale. The core mission of XLM is to serve as a bridge currency, facilitating the exchange and transfer of different fiat currencies.

The Stellar network is an open-source, decentralized system with advantages such as fast transaction speeds and extremely low fees. It not only supports cross-border payments but also allows the issuance of tokens, deployment of smart contracts, and even ICOs (Initial Coin Offerings) on the platform.

Historical and current status of XLM crypto price

Image:https://www.gate.io/trade/XLM_USDT

In 2024, the XLM crypto price experienced a relatively stable period, generally staying between $0.10 and $0.20. Since the beginning of 2025, with the overall recovery of the cryptocurrency market and several institutions announcing the adoption of Stellar network technology, the price of XLM has steadily risen. As of May 19, 2025, the price of XLM is approximately $0.288, with a nearly 40% increase since the beginning of the year.

Behind the price rise is the market’s recognition of its underlying network, especially the continued growth in usage in cross-border payments and stablecoin issuance.

The core factors driving the price movement of XLM

1. Macro market situation: The overall sentiment of the cryptocurrency market directly affects the performance of XLM. For example, the price changes of Bitcoin and Ethereum often drive the synchronized fluctuations of altcoins.
2. Institutional adoption and collaboration: Integrating the Stellar network into global payment solutions by companies such as IBM and Deloitte will increase the demand for XLM.
3. Technical updates and ecological development: the release of new protocols, smart contract upgrades, or the issuance of new assets will all increase the trust in the network.
4. Regulatory environment changes: Regulatory policies on cryptocurrencies in various countries will directly affect market sentiment.

The main application scenarios and technical advantages of XLM

XLM is widely used in the following scenarios:

• Cross-border remittance: Its low cost and high speed make it the preferred choice for transfers between individuals and institutions.
• Stablecoin custody and settlement: Stellar supports the issuance of fiat-pegged stablecoins, such as USD Anchor, which is beneficial for financial institutions to carry out settlement business.
• Smart contracts and DApps: Although not as prosperous as the Ethereum ecosystem, Stellar is also continuously expanding its contract and decentralized application capabilities.

Its technical advantages include:

• Trading confirmation time is about 2-5 seconds
• Single transaction fee as low as 0.00001 XLM
• Support multi-asset transfer and automatic exchange

Future Outlook: Opportunities and Challenges for XLM

With the growing demand for low-cost payment solutions worldwide, the Stellar network is expected to play a more critical role in cross-border payments, stablecoin issuance, and the Web3 ecosystem. Especially in emerging markets such as Africa and Southeast Asia, Stellar’s borderless payment capabilities could have a revolutionary impact.

However, XLM also faces some challenges, such as:

• The ecosystem is not as active as Ethereum, Solana, and other chains
• Competitors (such as Ripple, Polygon) accelerate technological evolution
• The market’s expectations for application layer innovation are increasing

The future ability to continue attracting developers and users will determine whether its price can sustain an upward trend in the long term.

How to start XLM investment?

For beginners, there are two ways to participate in XLM investment:

1. Buy XLM directly: After opening an account on mainstream cryptocurrency exchanges such as Binance, Gate.io, Coinbase, etc., directly purchase XLM and store it in an electronic wallet, suitable for long-term holders.
2. Trading XLM Contract for Difference (CFD): Speculate on price movements through platforms like Capital.com without the need to hold the actual coins, making it more suitable for short-term traders.

In any case, it is recommended to fully understand market volatility before starting to invest and set reasonable stop-loss strategies.

Conclusion

Although XLM crypto price may not attract as much global attention as Bitcoin, its underlying technology and practical application value are steadily gaining recognition. For users who are looking to invest in cryptocurrencies with practical use cases, XLM coin is undoubtedly a worthy option. Keep an eye on the market dynamics, seize the right entry point, and you may benefit from the development of XLM.