Is Stellar the Fastest Crypto? A Look into XLM and Its Impact on Banking
By Ivan Andonov
Last Updated: April 11, 2025
Fact-Checked by Akiyama Felix
As the cryptocurrency landscape continues to evolve, Stellar (XLM) has surfaced as a potential contender for one of the fastest digital currencies, especially in comparison to traditional banking systems. Developed to facilitate efficient and low-cost cross-border transactions, Stellar is positioning itself not only as a player in the crypto market but also as a viable alternative to conventional banking practices.
Stellar’s Market Position
Currently ranked among the top 20 cryptocurrencies, Stellar boasts a market capitalization of approximately $7 billion, with XLM priced around $0.227. This relatively stable price indicates robust support levels for investors and enthusiasts alike. However, the true value of Stellar lies beyond mere market metrics; it’s the recent strategic developments that are drawing attention.
In February 2025, Société Générale-Forge (SG-FORGE) launched a euro-backed stablecoin, EURCV, on the Stellar network. This initiative is significant as it not only amplifies Stellar’s presence in the European financial sector but also enhances accessibility for businesses and individual users looking to engage with cryptocurrency. This launch demonstrates Stellar’s alignment with the European Union’s Markets in Crypto-Assets (MiCA) regulation, which aims to provide clarity and safety in crypto transactions.
The Advantages of Stellar Over Traditional Banking
One of the standout features of Stellar is its transaction speed. While traditional banks can take anywhere from one to five business days to process payments, Stellar offers a remarkable transaction time of around four to five seconds. This rapid processing capability redefines what users can expect from financial transactions, making traditional banks appear sluggish in comparison.
Another pronounced advantage is the cost associated with transactions. Stellar’s fees are typically a fraction of a cent, whereas traditional banking systems often impose various fees just for receiving funds. Furthermore, Stellar provides complete on-chain traceability, allowing users to oversee their transactions without the need for banking approvals, which can sometimes be a cumbersome process.
Recent Developments and Future Prospects
Stellar’s recent updates include Protocol 22, launched on November 16, 2024, which aims to improve efficiency and functionality on the network. Notably, upcoming enhancements slated for the third and fourth quarters of 2025 are expected to triple transaction speed from 1,500 transactions per second (TPS) to 5,000 TPS, and reduce block closure times from five seconds to just 2.5 seconds.
In addition to these technological advancements, Layer 2 solutions like Starlight and Pendulum are being integrated into the Stellar ecosystem. Starlight is designed as a payment channel protocol, while Pendulum will connect Stellar to broader decentralized finance (DeFi) markets, enhancing the network’s usability and reach.
The Competitive Landscape: Layer 2 Projects
The growing interest in Layer 2 (L2) solutions is a notable trend across the crypto sector. Projects like Solana are recognized for their rapid scalability and innovative technologies, but they also face challenges during market peaks. For instance, Solana’s recent performance has raised questions about its readiness for widespread use. In contrast, XLM’s focus on low transaction fees and enhanced speed may position it better in the successful implementation of L2 technologies.
Conclusion
As Stellar continues to advance its offerings and solidifies its place in the European financial market, it becomes increasingly clear that XLM has the potential to revolutionize conventional banking. With its innovative approach to cryptocurrencies and a robust regulatory framework bolstering its initiatives, Stellar stands ready to challenge traditional financial systems effectively, making it an attractive option for both crypto enthusiasts and everyday users alike.
For those interested in the future of finance and the lasting impact of cryptocurrencies like Stellar, keeping an eye on these developments will be crucial as the industry continues to unfold.
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