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Stellar Lumens (XLM) has been one of the leading altcoins for the past few years. The cryptocurrency has become popular due to the various benefits of its blockchain. However, despite its popularity, some crypto proponents still don’t know much about XLM. Some even confuse it with XRP, the cryptocurrency behind Ripple. This post will address that and educate readers on Stellar Lumens, what it does, and other crucial information.

Stellar XLM Price

What is XLM?

stellar xlm

XLM is the native cryptocurrency of the Stellar blockchain. Stellar Lumens is a blockchain platform that aims to make it easier for people and institutions to conduct cross-border transactions. The network intends to ease cross-border remittance by enabling faster transactions and reducing the high fees attached. 

This cryptocurrency has similar functions to XRP, which is used by RippleNet and other technologies to ease cross-border transactions. Stellar XLM is unique because it allows people to send any type of currency and have it arrive as another type of currency. This means that you can send Bitcoin, and the recipient receives it as Euros. Or you can send the US dollar, and the other party would receive it as Ethereum.

Stellar XLM Chart Live

Benefits of XLM

Stellar XLM intends to be a blockchain network that provides financial access to people in all parts of the world, especially those in the unbanked and underbanked regions. The significant benefits of XLM are the low transaction fees, fast transaction speed for cross-border remittance, and tight security. 

Is XLM a Fork of XRP?

Due to the similarities between these two, most people assume that XLM is a fork of XRP. However, the consensus protocol between these two is not identical. Ripple relies on voting, with transactions are approved by more than 80% of the nodes, Stellar XLM allows its nodes to become validators. 

Also, the two differ in their target audience. XRP is known for providing services to banks and other financial institutions. However, Stellar XLM focuses on providing remittance services to individuals. Thus, they usually handle micro transactions. 

Here is a table comparing the two cryptocurrencies.




Founding date:

Total coin supply:

Consensus protocol:

July 30, 2014
100 Billion

Stellar Consensus Protocol (SCP)

Jan 1, 2012
100 Billion

Proof of Correctness (PoC)


It increases by 1% annually

No, it decreases depending on variable burn rate

Transaction speed:

Programming language:

2-5 seconds


4 seconds

Financial institutions

See current market cap and pricing details along with XLM charting analysis


xlm vs. xrp

Use Cases

One of the primary use cases for XLM is in settling cross-border transactions for both individuals and financial institutions. Its partnership with IBM has helped Stellar Lumens gain considerable adoption as a cross-border remittance blockchain. 

At the moment, the Stellar / IBM platform uses only XLM, British pounds, and Fijian dollars. However, it would be expanded to handle seven fiat currencies soon. Also,, a mobile payment platform, uses the Stellar network to conduct remittances to the Philippines. The transaction fees are so low they could be considered free. 

Flutterwave, a mobile payment platform in Africa, uses Stellar to aid money transfer between certain African countries like Nigeria, Ghana, and Kenya. ICICI, which is the largest private sector bank in India, is integrating with the Stellar blockchain to support money transfers within the country and beyond. With the ICICI mobile app, XLM would be used by thousands of people in India to carry out local and international transactions at almost no cost. 

Stellar’s relationship with a French remittance company, Tempo Money, provided another use case for the cryptocurrency. The network allows people to send and receive international payments from Europe through banks connected to the Stellar network.

How Does XLM Work?

XLM uses the Stellar Consensus Protocol, which is a decentralized network of peers that run independently of each other. The decentralized network of servers on the blockchain syncs and reaches consensus, creating the network and allowing the ledger to be distributed as evenly and widely as possible. 

Due to the Stellar Consensus Protocol, the XLM network can achieve better speed and efficiency compared to most blockchains running on proof-of-work (PoW) consensus protocols. The algorithm of XLM differs entirely from that of XRP, despite the similarities in the functions of the two cryptocurrencies. 

With Stellar, transactions occur in a more decentralized manner than what you get with Ripple. While Ripple works with banks and other financial institutions to serve as intermediaries for the transaction of currencies, Stellar utilizes what we know as “anchors.”

According to Stellar organization, anchors are entities that people trust to be in charge of their deposits and hand out credits into the blockchain for those deposits made. The anchors function as the bridge between different currencies and the Stellar blockchain. All the money transactions executed on the Stellar network (asides XLM) are done in the form of credit issued by the anchors. 

The anchors on the Stellar blockchain help with currency transfer. For example, if you are interested in sending USD for Euros and there are no available trading pairs, the network will trade the USD for XLM and proceed to trade the XLM for EUR. If this scenario is hard, the network will take another path. For instance, it could exchange the USD for BTC, then the BTC for XLM, and then the XLM for EUR. In the end, the network always finds the least friendly and fastest route to send funds to the recipients. 

How to buy and store Lumens (XLM)

You need the XLM coins to use the Stellar network. Luckily, the cryptocurrency can be found on various cryptocurrency exchanges and are available for trade directly on the Stellar blockchain also. 

If you are in the US,  Uphold and Coinbase are two popular cryptocurrency exchanges that you can buy XLM with the US Dollar.  

Outside the US, you have various cryptocurrency exchanges to buy XLM. Some of the exchanges include Bittrex, Huobi, Binance, Changelly, CEX.IO, and a wide range of others. Due to the large market cap and popularity of XLM, you can purchase the cryptocurrency on virtually on exchanges. 

After purchasing XLM, we don’t advise you to store them on your cryptocurrency exchange due to the vulnerability of the platforms to hack. Instead, you can store them on hot or cold wallet storage units like Trezor and Ledger. After saving your XLM, ensure to keep your private keys safe so that you don’t lose permanent access to your wallet. 


Stellar Lumens (XLM) is one of the top 20 cryptocurrencies by market cap. It is a popular crypto that helps facilitate cross-border remittance. However, unlike Ripple, which targets banks and other financial institutions, Stellar offers its services to individuals. XLM continues to gain adoption thanks to its meager transaction fees and the fast transaction speed. 

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