Why invest in XLM?
Investing in Stellar Lumens (XLM) can be attractive for several specific reasons, based on the characteristics and potential of the Stellar network. Here are three main reasons:
1. Fast and cheap international transactions: Stellar was designed to facilitate low-cost international transfers, with transactions completed in 2-5 seconds for a fraction of a cent (0.00001 XLM per transaction). This makes it an efficient solution for remittances and global payments, especially for unbanked populations, attracting partnerships with major players like IBM and MoneyGram.
2. Scarcity and potential for appreciation: In 2019, the Stellar Development Foundation burned 55 billion XLM, reducing the total supply to about 50 billion, with no plans to create more. This scarcity could increase the value of XLM in the long term, especially if network adoption grows, as rarity tends to drive up price.
3. Partnerships and institutional adoption: Stellar has strategic partnerships with companies like IBM, Mastercard, and Franklin Templeton, as well as collaborations with governments, such as Ukraine, to explore digital currencies. These connections reinforce credibility and the potential for large-scale use, which could boost demand for XLM.
