Jed McCaleb, co-founder of Ripple Labs and the creator of Stellar (XLM), recently shared insights on why he believes Stellar is an undervalued asset in the cryptocurrency space. In an interview covered by U.Today, McCaleb outlined the network’s unique features and real-world use cases, emphasizing its potential for growth and adoption.
Stellar’s Real-World Utility
According to McCaleb, Stellar stands out in the blockchain ecosystem by processing significantly more daily transactions than most other networks, including handling ten times the volume of Ethereum. Unlike many blockchain projects that struggle with practical applications, Stellar is actively utilized in real-world transactions, giving it a competitive edge.
Key Features of Stellar
McCaleb praised Stellar’s simplicity and thoughtful design, which integrates essential blockchain functionalities such as:
- Stablecoin and Token Issuance: Built-in capabilities that simplify the creation and management of digital assets.
- Decentralized Exchange (DEX): A feature allowing seamless trading of assets directly on the blockchain.
- On-Chain Governance: A robust system to support network upgrades and decision-making.
- Smart Contract Platform (Soroban): Designed to prioritize safety and efficiency, Soroban addresses common vulnerabilities like reentrancy issues, ensuring more secure smart contract deployment.
McCaleb also highlighted the network’s transaction costs, describing Stellar’s fees as “basically free,” making it an attractive choice for businesses and developers alike.
Developer-Friendly Infrastructure
Stellar’s engineering, which McCaleb called “world-class,” is complemented by developer-friendly documentation. This extensive resource makes it easier for developers to build applications on the network, fostering innovation and encouraging broader adoption.
Mission to Revolutionize Payments
Stellar’s overarching goal is to transform digital payments. By providing financial services to underbanked communities and offering businesses a cheaper and more efficient way to transfer assets, Stellar is working to redefine how value moves globally.
Strong Market Performance
Stellar’s positive momentum comes amid a broader market recovery for cryptocurrencies associated with McCaleb. XLM has surged nearly 500% recently, reaching $0.65—a level not seen since May 2021. This rally follows the resignation of SEC Chair Gary Gensler, which has boosted sentiment around cryptocurrencies like XRP and XLM. XRP, also linked to McCaleb, has gained 170% year-to-date, rebounding from years of suppressed prices due to regulatory challenges in the SEC v. Ripple case.