ETF.com Insight and Analysis
Lumen is the native cryptocurrency of Stellar, a network for currencies and payments. Stellar is used to create, send and trade digital representation of any asset—but primarily currencies. The network helps remove the frictions of moving money around in the traditional financial system by tokenizing currencies so they can be traded freely on the blockchain.
Tokenized assets are backed one-for-one with actual underlying assets. The tokens are issued by regulated financial institutions, money service businesses or fintech companies, and can be redeemed back into the underlying asset at any time.
The tokens that live on the Stellar network are sometimes called “stablecoins,” because their value is linked to stable assets like the dollar or euro.
In addition to these tokenized assets that live on the Stellar blockchain, so too does the lumen. Its role is to provide a small amount of friction to the Stellar network to protect against spam and other bad actors from sending frivolous transactions.
Every user of the Stellar network must hold lumens, and a certain number of lumens must be paid with every transaction. The total supply of lumens in existence is capped at 50 billion.
Stellar Reference Rate Chart
Free Float Market Cap
Active Addresses Count
Address Count > $100