Stellar
XLM
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
Stellar (XLM) demonstrates strong fundamentals led by an active development cadence (9.0/10), featuring continuous protocol upgrades (Protocol 23/24) and multi-language SDK maintenance. Market and Use Case (7.5/10) and Team and Governance (7.5/10) reflect robust institutional adoption—including over $1.2B in tokenized RWAs (such as Franklin Templeton Treasuries) and MoneyGram integration—guided by an experienced, public leadership team at the Stellar Development Foundation (SDF). Community engagement is healthy (7.0/10) across nearly 10 million active addresses. Tokenomics (6.0/10) are moderate, balancing a fixed supply cap following the 2019 SDF burn against treasury concentration overhang and low fee capture. Security and Audit History scored 4.5/10 primarily due to an unrecovered drawdown from its all-time high and regulatory disclosures noted in Grayscale's 2022 filing; however, historical technical incidents (such as the 2017 inflation exploit) were remediated years ago, and no qualifying red-flag event triggers an overall score cap. The overall score represents the exact weighted average across all six evaluated sections.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Stellar (XLM)
Stellar (XLM) is the native cryptocurrency of the Stellar network, an open-source blockchain launched in 2015 for cross-border payments, asset tokenization, and stablecoin settlements. The network was established in 2014 by Jed McCaleb and Joyce Kim and is supported by the Stellar Development Foundation (SDF), an organization overseen by CEO Denelle Dixon and CTO David Mazières. Operating under the Stellar Consensus Protocol (SCP), the network combines independent node consensus with SDF coordination to process transactions and bridge currency exchanges.
The XLM token is used for paying network operation fees (0.00001 XLM per transaction), mitigating spam, and serving as a bridge asset within Stellar's decentralized exchange (SDEX). Originally launched with a supply of approximately 100 billion tokens, the supply was reduced to approximately 50 billion in November 2019 following a burn, alongside the removal of its 1% annual inflation mechanism. Stellar integrates enterprise payment rails and stablecoins, collaborating with entities such as MoneyGram, DTCC, and Circle. Core development includes Soroban smart contract upgrades and major protocol milestones spanning Protocol 23 and Protocol 27.
Stellar faces risks related to market drawdowns, security, and supply distribution. The asset trades at an unrecovered drawdown exceeding 50% from its all-time high. A substantial portion of the total supply remains held by the SDF for ecosystem development without fully granular public vesting schedules, creating supply concentration. In security history, the network features formal smart contract audits by Veridise and a HackerOne bug bounty program; recorded security events include a historical SDEX vulnerability logged under HackerOne report #330105 and a community-reported web-wallet theft incident in January 2018.