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What is XLM?
$XLM , or Stellar Lumens, is the native cryptocurrency of the Stellar network, an open-source, public blockchain designed to facilitate fast, low-cost cross-border payments. Created to bridge the gap between traditional finance and blockchain technology, Stellar aims to make money more fluid, markets more open, and people more empowered.
What Does XLM Do?
Transaction Medium: XLM serves as the primary currency for transactions on the Stellar network, ensuring liquidity and facilitating exchanges between different currencies.Network Fees: Every transaction on the network requires a minimal amount of XLM as a fee, which helps prevent spam and maintains the network's efficiency.Financial Inclusion: Stellar is particularly focused on providing financial services to the unbanked or underbanked, aiming to reduce the cost and time of international remittances.
Why is XLM Undervalued?
Efficient Infrastructure: Stellar's consensus protocol allows for transactions to be processed in seconds with very low costs, often just a fraction of a cent. This efficiency is not fully reflected in its current market cap.Partnerships and Adoption: Stellar has partnerships with entities like IBM, MoneyGram, and various banks for real-world applications, particularly in remittance corridors. The network's utility in practical, everyday financial transactions is still underappreciated by the market.Stellar's Ecosystem Growth: Numerous projects and applications are built on Stellar, from DeFi platforms to tokenized assets, increasing the network's utility and potential demand for XLM.Current Market Cap: At the time of writing, XLM's market cap is $12.9B, which many in the crypto community argue does not reflect its potential or the breadth of its real-world applications.
Why Could XLM Skyrocket in the Future?
Global Payment Solutions: As the world moves towards more digital transactions, especially in emerging markets, Stellar's infrastructure is ideally positioned to capture a significant share of this market.Regulatory Environment: Stellar's focus on compliance and its partnerships with established financial institutions could make it a preferred blockchain for banks and regulators looking to adopt blockchain technology safely.Tokenization: There's a burgeoning interest in tokenizing real-world assets on the Stellar network, which could dramatically increase the demand for XLM as these assets require XLM for transactions.Stablecoin and CBDC Integration: Stellar's technology is well-suited for stablecoins and potentially central bank digital currencies (CBDCs), areas that are gaining significant traction worldwide.
XLM combines a solid technological foundation with real-world applicability, which, coupled with its current undervaluation, positions it as a potential dark horse in the cryptocurrency market.
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