What Is Stellar: Features, Utilities, Investment Opportunities

Stellar Blockchain Explained

The crypto market has appeared and grown by offering solutions to the problems that traditional financial systems have. Stellar founders have built a network capable of proceeding with millions of transactions daily. Moreover, the Stellar network partners with many platforms. So, there is a good chance you have already used it without even knowing. 

Is it worth converting XLM to BTC? What are the other most significant features Stellar blockchain offers? Where can you use it? Find below.  

Stellar Key Features

The Stellar platform was launched in 2014 along with its native token Lumen (XLM). The creator’s intention was to provide a network that gives financial freedom to everyone. Hence, the blockchain works as a bridge between financial institutions, banks, and people around the globe. Here are a few main features that made Stellar unique:

  • Simple usage 

One of the features Stellar offers is a simple exchange process and easy access. All you need to join the Stellar Network is a stable internet connection.

  • Decentralization and Transparency  

No authorities or companies control the movements of assets within the Stellar blockchain. All the transactions are validated by the community and recorded on the ledger, so anyone can check their authenticity. 

  • High transaction speed 

Stellar has revolutionized the speed of cross-border and cashless fiat transactions. The confirmation time of your payment lasts no more than 3-5 seconds on Stellar. Furthermore, the whole network can process nearly 1,000-5,000 transactions per second. 

  • Low transaction cost

Along with high speed, the transactions are also extremely cheap. You are required to pay only 0.00001 XLM per transaction as a fee.  

Stellar Use Cases

Thanks to numerous features, Stellar attracts companies from different industries.

FinTech

Stellar can help to tokenize any financial asset and service to make them more inclusive. Such inclusion is crucial for people who cannot afford to pay big commissions and fees for money transfers. That is why fintech companies interested in financial freedom work closely with Stellar. Among Stellar partners are Flutterwave, Leaf, DSTOQ, and so on. 

Remittances 

Another important issue that Stellar resolves are slow and high-cost remittances. Traditional money transfers go through financial institutions, banks, and beneficiary institutions before they reach the recipient. Sometimes, it takes up to a few days for remittances to proceed. Moreover, intermediates charge up to 15% for their service. Stellar charges only 0.00001 XLM for almost instant transactions without a middleman.  

On/Off-Ramps

Full financial freedom is not impossible without easy access to fiat-to-digital conversion and vice versa. So, off and on ramps is also a significant use case for Stellar. The blockchain offers its clients a well-developed seamless integration. By implementing it, any financial company will be able to provide cost-effective, widely accessible, and fast on & off ramps. Among partners of Stellar are Wyre, Circle, MoneyGram, and others. 

Cross-Border Payments

For customers and businesses, cross-border payments are always one of the biggest issues. The single transaction always involves a few entities, sometimes takes 2-5 business days, and costs up to 6%. However, there are no borders for blockchain, and the transactions are almost instantaneous. That is why Stellar is a perfect solution for both businesses and individuals. 

Stellar Price Potential Evaluation

The market capitalization of Lumen is over $3 billion in August 2022. This makes it one of the biggest cryptocurrencies on the market. Also, the XLM price is quite low now and fluctuates at $0.12 per coin. So, by purchasing Lumen, you will make a solid contribution to your portfolio while spending a negligible amount. 

But even if the expediency of investing in XLM is proven, the timing might not be right. That is why it would be wise to look at XLM price predictions by reliable platforms:

Price Prediction platform 2022 prediction2023 prediction2025 prediction
PricePrediction.net$0.14 – $0.15$0.22 – $0.25$0.43 – $0.51
DigitalCoinPrice.com$0.17 – $0.18$0.20 – $0.21$0.24– $0.27
Gov.Capital $0.143 – $0.169$0.385 – $0.454$1.358 – $1.598

As you can see, even the least optimistic forecasts for XLM prices look promising for investors in the near future. 

Conclusion

Given the numerous use cases Stellar offers and the growing community around the world, this blockchain will remain in need for the near future. So, investing in Stellar and its native coin XLM might be profitable for anyone regardless of their experience in the crypto world. 

But before swapping your BTC to XLM, or, basically, any crypto pair, e.g. IOTA to BTC, check the price predictions carefully and do your own research. 

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