What is the cryptocurrency Stellar Lumens (XLM)? Explaining its future prospects, how to purchase it, and its benefits

Stellar Lumens (XLM) is one of the cryptocurrencies that has been rapidly gaining attention in recent years. In the cryptocurrency market, XLM is expected to be used especially in the field of international remittances due to its unique characteristics and technology.

In this article, we will explain basic information about Stellar Lumens, as well as its future prospects and the benefits of purchasing it in an easy-to-understand manner for beginners.

Price: 43.04 yen

As of March 24, 2025（CoinMarketCap "Stellar (XLM) Price, Chart, Market Cap"）

It is highly susceptible to the market conditions of cryptocurrencies, and its price fluctuates in tandem with XRP. At the time of writing, its market capitalization ranks 15th.

History of Stellar Lumens

Stellar Lumens refers to a project founded in 2014 by former Ripple co-founder Jed McCaleb. The purpose of Stellar Lumens is to build a decentralized financial network and make financial services easily available to people around the world. The Stellar network enables fast and low-cost transfers between different currencies.

Stellar Lumens aims to promote financial inclusion, especially in developing countries, and places importance on providing financial services to people who do not have bank accounts. For this reason, Stellar Lumens is not just a cryptocurrency, but is also evaluated as a project with social impact.

The role of XLM

XLM is the native token of the Stellar network and serves the following purposes:

• Payment of transaction fees: XLM is used as a transaction fee within the network. This ensures that transactions are carried out smoothly and the health of the network is maintained.
• Bridge between currencies: Acts as an intermediary when exchanging different currencies. For example, when a user wants to exchange Japanese yen for US dollars, XLM acts as a bridge.
• Utilization of smart contracts: XLM is the basis for various applications that use smart contracts. This allows complex financial transactions and contracts to be automated and carried out efficiently.

Fast and low-cost transfers

Stellar Lumens offers near-zero fees for international remittances. Traditional banks and remittance services typically impose high fees for international remittances, but Stellar significantly reduces those fees. Transactions are completed in seconds, allowing for fast transfers. This characteristic is crucial, especially for business and personal remittance needs.

Promoting Financial Inclusion

Stellar Lumens aims to provide financial services to those without bank accounts. There are hundreds of millions of people around the world who cannot access banking services.

Stellar Lumens promotes financial inclusion by providing accessible financial services to these people. For example, all you need is a smartphone to send money and manage your assets through the Stellar network.

Collaboration with existing financial institutions

Stellar Lumens also works with existing financial institutions, allowing assets to be issued and exchanged through its DEX (decentralized exchange) function. This bridges the gap between traditional financial systems and crypto assets, allowing more people to enjoy the convenience of Stellar Lumens.

Energy efficient

Stellar Lumens does not use Proof of Work (PoW) as its consensus algorithm, so it has a low environmental impact and is highly energy efficient.

Conventional mining methods are problematic in that they consume large amounts of electricity, but Stellar Lumens avoids such issues. This contributes to the creation of a sustainable financial system.

Partnerships with companies and financial institutions

Stellar Lumens has built partnerships with various companies and financial institutions, such as "World Wire" in partnership with IBM. This could lead to the spread of XLM usage. In particular, the partnership with IBM is an important example of how Stellar's technology can be used in real business situations.

Relationship with CBDC (Central Bank Digital Currency)

Stellar Lumens is also working with some countries' digital currency projects, and its relationship with CBDC is attracting attention. Digital currencies issued by central banks are expected to play an important role in the future financial system, and Stellar Lumens may establish itself as its underlying technology.

Entering the DeFi and NFT fields

With the strengthening of smart contracts, we are also expecting to enter the DeFi (decentralized finance) and NFT (non-fungible token) fields. This will create new use cases. In particular, DeFi provides a new form of financial services, and Stellar's competitiveness in this field will contribute to future growth.

競合との差別化

In the face of competition from Ripple/XRP and other remittance-focused blockchains, Stellar Lumens differentiates itself with its unique technology and vision. In particular, its emphasis on financial inclusion is a strength not found in other projects. This gives Stellar Lumens an advantage in certain market segments.

Domestic exchanges where you can purchase

XLM can be purchased at the following domestic exchanges:

• Coincheck
• bitFlyer
• SBI VC Trade
• OKJ　etc.

These exchanges make it easy to purchase XLM and are easy for beginners to use.

Benefits of Purchasing XLM

• Low-cost international remittance method: XLM is very cost-effective as a means of international remittance. Especially if you have family or friends overseas, using XLM can significantly reduce fees.

  Promising project: Stellar Lumens has a promising future through financial inclusion and collaboration with companies. This may lead to an increase in the value of XLM in the future.

  Strong actual demand: Although there is no yield management like staking, the strong actual demand is an attractive point. It is expected that demand will increase as many companies and individuals use XLM.

Caution (risks)

• Price fluctuation risk: Crypto assets are subject to large price fluctuations, so it is necessary to understand the risks. In particular, if you are considering short-term investments, you need to be careful of price fluctuations.

  Competition with competing projects: With a lot of competition, it is important to always keep a close eye on market trends. In particular, as competition with Ripple and other remittance-focused blockchains intensifies, the key will be how Stellar Lumens differentiates itself.

Stellar Lumens is a cryptocurrency that is expected to be used in the field of international remittances, and due to its unique features and technology, it is attracting attention as a project that focuses on financial inclusion.

In this article, we have provided a detailed explanation of the basic overview of Stellar Lumens, its technical characteristics, future prospects, how to purchase it, and the risks involved. Finally, let's summarize the main points.

• Promoting financial inclusion: It aims to provide financial services to people without bank accounts and create a financial system that is accessible to people around the world.

  Low-cost, fast remittances: With almost zero fees and transactions completed in seconds, it is competitive with the traditional financial system.

  Future potential: With a partnership with IBM and ties to CBDC, it is also expected to enter the DeFi and NFT fields.

  Ease of purchase: It can be easily purchased on exchanges both domestically and internationally, and can be used as a low-cost means of international remittance.

Overall, Stellar Lumens is a project that has the potential to play an important role in the future financial system. By understanding its characteristics and future potential and making appropriate investment decisions, you will be able to enjoy the benefits of XLM.

The cryptocurrency market is constantly changing, so it is important to keep up with the latest information. Let's make wise investments while looking forward to the future of Stellar Lumens.

Image: Shutterstock

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