Stellar cryptocurrency – history, benefits, price
The cryptocurrency Stellar is often referred to as a reliable, improved version of “Ripple”. Its key features include:
- The absence of control over the currency by the developers, since the development of the Stellar project is engaged in a fully non-profit institution;
- the currency uses its own open protocol;
- full transparency in terms of reporting on the cryptocurrency, investments made by its controlling foundation, as well as the level of salaries of Stellar’s employees.
All owners of this currency in large volumes have a written commitment not to make sales of Stellar for the next five years in order to prevent rate manipulation.
The history of the cryptocurrency Stellar
The history of the coin began when the company was founded before 2014, but it was in that year that it underwent a major rebranding. At that time, the Stellar coin received a prefix to its name – Lumen (XLM).
The Stellar was a special consensus platform with no centralization at all. The platform allowed the exchange of assets. The coin itself plays the role of an exchange unit – nothing more.
For example, if you have your own bitcoins on one of the exchanges, which you plan to transfer in any form to another market participant or exchange to dollars, you just need to register in Stellar and provide the data for the exchange. After that, you can conduct the transaction according to the option that this system will offer.
The commission of the exchange is extremely small and is about 0.0001 “Lumens”.
Key benefits and features of Stellar
Clearly advantageous features of using this cryptocurrency are worth mentioning:
- The presence of a completely open source code, as well as the complete absence of centralization.
- Getting all users of the Stellar system equal in essence opportunities and rights.
- High speed of processing large amounts of data: the speed of confirmation of each transaction rarely exceeds the index of 5 seconds.
- Support of all cryptocurrencies that are currently present in the market, as well as their complete synchronization with existing financial and banking systems.
- The presence of sophisticated cryptographic encryption, as well as autonomous nodes, which exclude the possibility of information leakage and guarantee the security of each user.
Of the features of Stellar, which should be considered when registering, are:
- Lack of a mining function (it is not available here).
- The set threshold for logging in is 20 coins (used by the system to prevent opportunities for spammers to attack).
Where you can buy Stellar today
Cryptocurrency of this type only needs to be purchased because, as mentioned above, mining is not provided by the system. Nevertheless, users can buy coins on the main cryptocurrency exchanges.
Stellar currency value: yesterday, today, tomorrow
In 2014, Stellar was virtually absent from cryptocurrency exchanges. It only appeared in early 2017 and was selling for 6 cents ($0.06) per token. In the spring of that year, there was a drop in the rate, when the value of one token was only 1 cent. The price change was due to a centralized cyberattack. Stellar managed to increase its value to 4 cents only in October 2017. However, in early 2018, thanks to the profitable contracts that the developers managed to sign, the value of the token increased several dozen times and amounted to almost 90 cents ($0.9) at the peak. After a rapid rise, Lumens returned to 4 cents in March 2020. Already in 2021, the peak price for the year was about 70 cents ($0.7), after which the coin began to gradually drop in value again. At the time of writing, 1XLM could be bought for 27 cents ($0.27)
Today, financial analysts and cryptocurrency market experts are absolutely confident that the token’s price will increase over time, as the popularity of cryptocurrencies in the world grows. Moreover, the developers of Stellar have created a fairly comfortable and reliable version of the currency. Its capitalization at the moment is approximately $6.7 billion.
What makes Stellar stable in the market
Cryptocurrency makes it possible to exchange a large number of assets, while losing virtually nothing on the commission, which is negligible. Appreciating the modernity and quality of Stellar technology, quite large corporations began to invest in the development of this project, which has greatly expanded the possibilities for its practical application. The more investors the fund regulating the use of the cryptocurrency manages to find, the more demand for it will become on the market.
The most optimistic forecasts suggest that by the end of 2022, the value of the token in the market may be about $10. That is, if today you buy Stellar at a price of 20-30 cents, the profit by the end of the year will grow by more than 30 times. And if we consider that some experts predict the value of coins at 20-30 dollars, even higher. Everything will depend only on the number of investors involved.
The platform is being actively improved by its developers. Even representatives of IBM – one of the leading corporations on the IT market – paid attention to Stellar.
Of course, during the investment process, it is worth being prepared for the fact that at some stages, the exchange rate may change to the lesser side, but in the long term it will definitely level out. This is important to consider for investors who want to buy Stellar today.