By Menno — 13 years in crypto, 3 bear markets survived, zero paid promotions
Last updated: April 2026
Stellar (XLM) Risk Score
Stellar (XLM) has a composite risk score of 12/100, classified as Very Low Risk. This score is derived from 6 active indicators and updates every 6 hours. Open network for cross-border payments and asset tokenization.
Stellar Risk Score
Very Low Risk
What Does This Score Mean?
A score of 12 means Stellar is in the Very Low Risk zone. Scores below 40 indicate relatively lower risk conditions, while scores above 60 suggest elevated risk.
This composite is computed from up to 9 indicators including on-chain data, market sentiment, and price action. The individual indicator scores are available to Alpha Factory members.
Scoring Indicators
| Indicator | Weight | Status |
|---|---|---|
| Risk Wave | 23% | Core |
| RSI (2-Week) | 18% | Core |
| ATH Distance | 5% | Core |
| Bitcoin Dominance | 5% | Core |
| Fear & Greed Index | 14% | Core |
| ALT/BTC Ratio | 5% | Core |
| BTC Production Cost | 9% | Core |
| Funding Rate | 5% | Modifier |
| Token Unlocks | 18% | Modifier |
Stellar Investment Context
Stellar has carved a specific niche in remittances and financial inclusion, with institutional partnerships including MoneyGram and various World Food Programme projects. The network's low cost and fast finality make it technically well-suited for high-frequency, low-value payment corridors. The Stellar Development Foundation actively pursues real-world deployment rather than purely speculative DeFi.
Key Features:
- Stellar Consensus Protocol (SCP) achieves finality in 3-5 seconds without energy-intensive mining
- Built-in decentralized exchange allows direct asset swaps between any two tokens on the network
- Designed for tokenizing real-world assets; MoneyGram partnership enables cash-in/cash-out of USDC
- Lumens (XLM) serve as the native fee and anti-spam currency, with a base fee of 0.00001 XLM
Key Risks:
- Jed McCaleb, co-founder of both Ripple and Stellar, has been a notable seller of XLM over the years
- Payment networks face regulatory scrutiny in multiple jurisdictions, especially for cross-border flows
- Competes directly with XRP, stablecoin rails (USDC, USDT), and traditional fintech networks for adoption
Payments Category
Payment-focused cryptocurrencies are designed for fast, cheap value transfer.
Strategy: Payment tokens are among the most stable crypto assets, suitable for conservative portfolios.
View all Payments risk scores →Compare with Payments Peers
| # | Coin | Score |
|---|---|---|
| 1 | XRP XRP | 14 |
| 2 | Litecoin LTC | 15 |
| 3 | Bitcoin Cash BCH | 32 |
Frequently Asked Questions
What is the current risk score for Stellar?
Stellar (XLM) currently has a composite risk score of 12/100, classified as "Very Low Risk". This score is derived from 6 active indicators including Risk Wave, RSI, and market sentiment data.
How risky is Stellar compared to other Payments coins?
Payments coins generally carry medium risk. Payment-focused cryptocurrencies are designed for fast, cheap value transfer. Among peers, XRP currently shows the lowest risk in this category.
What indicators are used to score Stellar?
The Stellar risk score uses up to 9 indicators: Risk Wave (momentum), 2-week RSI (overbought/oversold), ATH Distance, Bitcoin Dominance, Fear & Greed Index, ALT/BTC Ratio, BTC Production Cost, Funding Rate, and Token Unlocks. Each indicator is weighted based on its predictive value for altcoin market conditions.
Should I invest in Stellar based on this risk score?
Risk scores are for informational purposes only and do not constitute financial advice. Stellar has carved a specific niche in remittances and financial inclusion, with institutional partnerships including MoneyGram and various World Food Programme projects. The network's low cost and fa... Always do your own research and consult a financial advisor.