Stellar (XLM) : Smart Contracts, DeFi Ecosystem and Practical Applications
Introduction
Stellar (XLM), as a key project in the blockchain field, has shown significant development in technology construction, token economy, latest developments and future prospects in recent years. This report will conduct in-depth analysis from multiple dimensions, covering the technical process, XLM token economics and currency price fluctuations, especially the latest news trends and future prospects in 2025, to provide readers with comprehensive insights.
Trade XLM now:
https://www.gate.io/trade/XLM_USDT
Stellar development history: from focusing on payment to triggering smart contracts
Stellar was founded by Jed McCale and Joyce Kim in 2014, aiming to build a decentralized payment network connecting digital currency and legal currency. The initial total issuance was 100 billion XLM, aiming to facilitate fast and low-cost cross-border transactions. In April 2015, Stellar released an upgraded protocol, using the Stellar Consensus Protocol (SCP) created by Stanford professor David Mazières, which went online in November of that year, improving the consensus mechanism and security of the network.
By May 2017, Stellar launched the commercial entity Lightyear.io as its for-profit branch to further promote the commercialization of the project. In November 2019, the Stellar Development Foundation (SDF) burned 55 billion XLM, reducing the total supply from 105 billion to 50 billion, a move aimed at optimizing token distribution and responding to community concerns about centralized holdings.
Key milestones include:
2025: Stellar (XLM) Trinity Development
In 2025, Stellar (XLM) made significant progress in technology upgrades, partnerships, and ecosystem expansion.
According to the official blog post, the Stellar Development Foundation (SDF) worked with OpenZeppelin to enhance the security and efficiency of Stellar smart contract development. In addition, the launch of Stellar RPC improves the performance of the network and the developer experience. These technical upgrades are designed to enhance Stellar’s competitiveness in the fintech field.
The Stellar ecosystem in 2025 shows significant expansion and activity, with recent highlights including the “Better on Stellar Challenge” to encourage developers to innovate on the Stellar network. This challenge aims to inspire community creativity and promote the diversity of network applications.
In addition, Stellar has partnered with Stablebonds’ global bond project to explore new financial instruments. This collaboration aims to expand Stellar’s application in the field of real-world assets. Another important development is the welcome of Ondo’s USDY to join the Stellar network to enhance network liquidity. These integrations show Stellar’s continued efforts in stablecoins and financial instruments.
Stellar emphasizes open participation, everyday financial services and building trust to drive adoption. Recent partnerships with Visa, Tala and Circle further enhance its prospects. These partnerships include providing USDC access and Visa card support to help Stellar expand in emerging markets.
XLM Token Economics and Price Fluctuation
XLM is the native token of the Stellar network, which undertakes the functions of paying transaction fees and maintaining a minimum account balance (at least 1 XLM). According to its token economics, the total supply of XLM is 50 billion, and the current circulation is about 30.78 billion. In October 2019, the community voted to end the annual 1% inflation policy to further stabilize the supply.
The current price is about $0.2962, and it fluctuates between $0.2865 and $0.2987 in 24 hours. According to Gate.io data, XLM’s historical price shows significant fluctuations, reaching an all-time high of $0.9381 in January 2018, and has since undergone multiple adjustments. XLM price fluctuations are affected by market sentiment, partnerships, and macroeconomic factors, and investors need to pay attention to long-term trends.
Conclusion
Stellar is ushering in the era of smart contracts, bringing revolutionary changes to the DeFi ecosystem. XLM’s deflation mechanism and growth demand will drive its value to soar. From asset tokenization to cross-border payments, Stellar has shown great potential and is expected to become a key force in reshaping the global financial landscape in 2025.
Risk Warning: The cryptocurrency market is volatile, and changes in regulatory policies may affect the development prospects of Stellar (XLM). Investors should carefully assess risks.
