Stellar (XLM), a relatively new cryptocurrency has started 2018 with a bang as it now ranks among the top 10 cryptocurrencies in the world (by market cap). Stellar is not a well-known cryptocurrency but it surged more than 65 percent in just a few days to break into the elite top ten cryptocurrencies group.
In a matter of a few days, Stellar has reached a market cap of $15 billion making it the 6h largest cryptocurrency in the world. The coin has grown almost 300 percent since December 27, 2017, with its current valuation at $0.88 (up from 0.22 in just a week).
Stellar also uses blockchain technology much like almost all other cryptocurrencies. However, Stellar is a bit different from other popular blockchain cryptocurrencies like Bitcoin. Stellar’s transaction times range from only 2 to 5 seconds and Stellar also allows its users to exchange government-backed currencies (For example US dollar to UK Pound or dollar to EURO) quickly as well. The digital coin for Stellar is known as lumen or XLM for short.
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Some firms are trying to use Stellar’s network to achieve a cross-border payment system (much like Ripple). That gives Ripple competition as cross-border payment is one of the highly marketed features of Ripple that gives it an edge over other cryptocurrencies. South Korean and Japanese banks are already testing cross-border payments with Ripple.
Ripple also surged massively in the last few days reaching an all-time high of $2.3, also taking over Ethereum’s spot as the world’s second largest cryptocurrency. Although Bitcoin stole all the headlines and showed impressive growth, it was Ripple that had the best growth rate in 2017. As Ripple grew in the last week of 2017, Bitcoin fell below $14,000. There’s also a reason why Ripple and Stellar both have similar focuses i.e. payments.
Both Ripple and Stellar have a common developer. Jed McCaleb, the early cryptocurrency developer who also founded the Mt.Gox exchange previously worked with Ripple until leaving it in 2013. Nowadays McCaleb works with Stellar which according to its website is non-profit and covers its costs through different digital currency holdings and donations.
According to McCaleb, he created Stellar (XLM) considered all the problems and flaws of Ripple and created a much better version of Ripple in the form of Stellar.
There’s a reason why Stellar grew so much so fast. Not only is it cheap right now, but its network is capable of a lot. As mentioned earlier, Stellar provides a cross-border payment option for firms and banks and the public. It can connect everyone and move money almost instantly for a very minimal cost. Stellar’s network can be used to send money across borders quickly for a fraction of a cent.
In today’s world, this is a much-needed feature as there’s a need for money inflow and outflow all the time. Stellar allows for the money to move fast so no more annoying waiting times. Thus, it is obvious why it’s in high demand now.
Stellar is one of those currencies that one should invest in. Not only is it rapidly growing which would provide great returns for investors but the purpose with which it was made for i.e. cross-border payments is also something many people wished for, thus its best to invest in it now while its cheap.