The persistent confusion and name-mixing between Stellar and Lumens (XLM) is explained in the article as well as the overall developments of the latter during the year.
The year has been fantastic so far for the diehard cryptocurrency communities even in times of falling prices in the market. Stellar (XLM) has seen one of its brightest years yet as it partnered with IBM, launched its decentralized exchange, Stellar Decentralized exchange (SDEX) and is in plans to complete integrating private channel transactions in form of the Lightning network on the blockchain. All this has happened in less than 365 days, and while the price of XLM has since seen a drop in price in 2018 from highs of $0.87 USD to $0.245618 USD during the period, the next 365 days offers a hope for XLM to hit the previous highs.
XLM vs the Stellar Network
It is crucial to understand that Stellar Network offers more than just a global transaction and settlement service on the blockchain. The Stellar Network is also much larger than just the Foundation. It includes financial institutions, payment aggregators, and technical specialists all committed to supporting a new and inclusive global infrastructure for payments.
Just as it is with Ripple and XRP, so is Stellar and XLM. Stellar is a distributed leger that is maintained through a consensus mechanism rather than mining which is synonymous to the field of crypto. Stellar Network incorporates Lumens (XLM) as the main currency on the blockchain but one may choose to create their own currency. To keep it short, Stellar can operate without any need for Lumens and vice versa.
The Stellar network has many additional features such as supporting thousands of transactions per second and settlement of transactions in 2-5 seconds.
“This means users can, for example, send a transaction from their Yen balance and have it arrive in Euros, Yen, or even bitcoin. We’re expecting to support the usual categories of transactions: payments to a merchant, remittances back home, or rent splits with a roommate.” – Joyce Kim, cofounder of Stellar and former chief executive of SDF
XLM analysis in 2018
Last year ended with XLM hitting its all-time high at $0.870 USD across selected cryptocurrency exchanges. The first week of January saw the coin maintain its high prices till buyers realized the exorbitant prices charged for most cryptocurrencies across the market. This caused a huge crush and however good your product was, the prices fell.
Lumens price plummeted to $0.18, a quarter of its ATH price, at the end of the first quarter as most cryptocurrencies across the board continued to face bear runs. With a year low price of $0.18 USD set in March, Stellar Development Foundation (SDF) announced the launch of the StellarX decentralized exchange that reversed the bearish trend.
XLM currently trades at $0.245618 USD, representing a 2% increase in the past 24 hours. This places the coin 6th on the charts with a total market capitalization of $4,640,690,927 USD. Analysts predict an upcoming bullish trend that will see XLM rise to $0.5 USD mark as SDF continues to make huge partnerships around the globe.