XLM has several practical applications, making it a versatile digital asset. The primary use case is cross-border payments, allowing individuals and businesses to send funds across different countries with minimal fees. This makes Stellar an ideal solution for remittances, particularly in developing countries where banking services are limited.

Another key use case is asset tokenization. Companies can issue digital representations of real-world assets, such as stocks or commodities, on the Stellar network. This simplifies transactions and enhances transparency.

Additionally, Stellar's decentralized exchange (DEX) allows users to trade digital assets directly without intermediaries. This helps users swap currencies at competitive rates. As more institutions adopt Stellar's technology, demand for XLM may increase, affecting the XLM price positively.