Stellar

Stellar (XLM) is an open-source, decentralized network built to move value quickly and cheaply across currencies and borders. Its native token, XLM (lumens), keeps the network running by bridging exchanges between assets and preventing spam. Stellar's mission is financial inclusion: connecting banks, payment systems, and individuals to expand access for underserved populations.

What is Stellar?

Co-founded in 2014 by Jed McCaleb and Joyce Kim and stewarded by the non-profit Stellar Development Foundation, Stellar acts as global infrastructure linking traditional money to digital networks. A core concept is the "Anchor" — a trusted entity that holds deposits and issues corresponding credits on the ledger, providing the on- and off-ramps between fiat and the blockchain. This makes Stellar well suited to remittances and everyday cross-border transfers.

How does Stellar work?

Rather than Proof of Work or Proof of Stake, Stellar uses the Stellar Consensus Protocol, a form of Federated Byzantine Agreement. Each node selects trusted sets of other nodes, and the network reaches agreement on the ledger state without energy-intensive mining, delivering high throughput and finality within seconds. Stellar also includes a built-in decentralized exchange for trading assets directly, and the Soroban platform for smart contracts, enabling tokenization of real-world assets and DeFi services.

Stellar tokenomics and supply

Around 34 billion XLM circulate against a total near 50 billion. Importantly, the network has no ongoing inflation: the community voted to disable the automatic creation of new tokens, fixing the supply. XLM plays two utility roles — it serves as a bridge asset to find efficient exchange paths between currencies, and small transaction fees plus minimum account balances deter spam and protect the ledger.

• Consensus: Stellar Consensus Protocol (Federated Byzantine Agreement)
• Finality: transactions settle in seconds with high throughput
• Supply: no inflation after the community disabled new token creation
• Features: built-in DEX, Anchors, and Soroban smart contracts

What is Stellar used for?

Stellar is used for cross-border payments, remittances, currency exchange, and tokenizing real-world assets. Businesses and payment providers build on it to settle value cheaply and instantly, while XLM lubricates trades between different currencies. Its RWA focus and DEX make it a practical rail for moving money globally.

Where to buy Stellar

XLM is broadly available and liquid across major venues. Use our best crypto exchanges ranking to compare fees and supported pairs. Because Stellar runs on its own ledger, choose a wallet from our best crypto wallets guide that supports the native XLM network, and remember that Stellar accounts require a small minimum lumen balance to stay active.

Is Stellar a good investment?

Stellar is a long-standing project with real payment use cases, but XLM remains volatile, having ranged from an all-time high near $0.88 to fractions of a cent early on. Its value depends heavily on adoption by payment partners and Anchors, and it competes with other cross-border settlement networks. Consider the adoption trajectory alongside the risks, do your own research, and note that this is not financial advice.