diff --git a/src/hooks/useExchangeRate.ts b/src/hooks/useExchangeRate.ts
index b0194cb..245590d 100644
--- a/src/hooks/useExchangeRate.ts
+++ b/src/hooks/useExchangeRate.ts
@@ -1,12 +1,62 @@
-import { useState, useEffect } from 'react'
+import { useState, useEffect, useRef, useContext } from 'react'
+import { fetchExchangeRate, DEFAULT_FALLBACK_XLM_USD } from '@/lib/exchangeRate'
+import { useWalletContext } from '@/context/WalletContext'
+
+export interface ExchangeRateState {
+  xlmUsd: number
+  source?: 'coingecko' | 'horizon' | 'fallback'
+}
+
+/**
+ * Hook to retrieve live XLM/USD spot exchange rate.
+ * Polls every 30s while respecting the active network (if within WalletProvider).
+ */
 export function useExchangeRate() {
-  const [rate, setRate] = useState<{ xlmUsd: number } | null>(null)
+  let network: 'testnet' | 'mainnet' = 'mainnet'
+  try {
+    const walletCtx = useWalletContext()
+    network = walletCtx.wallet.network
+  } catch {
+    // Gracefully handle usage outside WalletProvider in isolated tests or standalone components
+    network = 'mainnet'
+  }
+
+  const [rate, setRate] = useState<ExchangeRateState>({
+    xlmUsd: DEFAULT_FALLBACK_XLM_USD,
+    source: 'fallback',
+  })
   const [loading, setLoading] = useState(true)
+  const isMountedRef = useRef(true)
+
   useEffect(() => {
-    const update = () => setRate({ xlmUsd: 0.12 })
-    setLoading(true); setTimeout(() => { update(); setLoading(false) }, 200)
-    const t = setInterval(update, 30_000)
-    return () => clearInterval(t)
-  }, [])
+    isMountedRef.current = true
+
+    let isFirst = true
+    const updateRate = async () => {
+      try {
+        if (isFirst) setLoading(true)
+        const result = await fetchExchangeRate(network)
+        if (isMountedRef.current) {
+          setRate(result)
+          setLoading(false)
+        }
+      } catch {
+        if (isMountedRef.current) {
+          setLoading(false)
+        }
+      } finally {
+        isFirst = false
+      }
+    }
+
+    updateRate()
+    const timer = setInterval(updateRate, 30_000)
+
+    return () => {
+      isMountedRef.current = false
+      clearInterval(timer)
+    }
+  }, [network])
+
   return { rate, loading }
 }
diff --git a/src/lib/exchangeRate.test.ts b/src/lib/exchangeRate.test.ts
new file mode 100644
index 0000000..9f5b934
--- /dev/null
+++ b/src/lib/exchangeRate.test.ts
@@ -0,0 +1,60 @@
+import { describe, it, expect, vi, beforeEach, afterEach } from 'vitest'
+import { fetchExchangeRate, DEFAULT_FALLBACK_XLM_USD } from './exchangeRate'
+
+describe('fetchExchangeRate', () => {
+  const originalFetch = globalThis.fetch
+
+  beforeEach(() => {
+    vi.restoreAllMocks()
+  })
+
+  afterEach(() => {
+    globalThis.fetch = originalFetch
+  })
+
+  it('fetches price from CoinGecko when available', async () => {
+    globalThis.fetch = vi.fn().mockImplementation((url: string) => {
+      if (url.includes('coingecko.com')) {
+        return Promise.resolve({
+          ok: true,
+          json: () => Promise.resolve({ stellar: { usd: 0.1542 } }),
+        })
+      }
+      return Promise.reject(new Error('Unknown url'))
+    })
+
+    const res = await fetchExchangeRate('mainnet')
+    expect(res.xlmUsd).toBe(0.1542)
+    expect(res.source).toBe('coingecko')
+  })
+
+  it('falls back to Horizon DEX on mainnet when CoinGecko fails', async () => {
+    globalThis.fetch = vi.fn().mockImplementation((url: string) => {
+      if (url.includes('coingecko.com')) {
+        return Promise.resolve({
+          ok: false,
+          status: 429,
+        })
+      }
+      if (url.includes('horizon.stellar.org/order_book')) {
+        return Promise.resolve({
+          ok: true,
+          json: () => Promise.resolve({ bids: [{ price: '0.1480' }] }),
+        })
+      }
+      return Promise.reject(new Error('Unknown url'))
+    })
+
+    const res = await fetchExchangeRate('mainnet')
+    expect(res.xlmUsd).toBe(0.148)
+    expect(res.source).toBe('horizon')
+  })
+
+  it('returns default fallback when all sources fail', async () => {
+    globalThis.fetch = vi.fn().mockRejectedValue(new Error('Network offline'))
+
+    const res = await fetchExchangeRate('testnet')
+    expect(res.xlmUsd).toBe(DEFAULT_FALLBACK_XLM_USD)
+    expect(res.source).toBe('fallback')
+  })
+})
diff --git a/src/lib/exchangeRate.ts b/src/lib/exchangeRate.ts
new file mode 100644
index 0000000..ba50a45
--- /dev/null
+++ b/src/lib/exchangeRate.ts
@@ -0,0 +1,84 @@
+import { horizonUrl } from './api'
+
+export interface ExchangeRateResult {
+  xlmUsd: number
+  source: 'coingecko' | 'horizon' | 'fallback'
+}
+
+/** Fallback price when external API and DEX are unreachable. */
+export const DEFAULT_FALLBACK_XLM_USD = 0.12
+
+// Standard Mainnet USDC issuer on Stellar
+const MAINNET_USDC_ISSUER = 'GA5ZSEJYB37JRC5AVCIA5MOP4RHTM335X2KGX3IHOJAPP5RE34K4KZVN'
+
+/**
+ * Fetch live XLM/USD exchange rate.
+ * Tries CoinGecko spot price first, then Horizon DEX orderbook (USDC/XLM) on mainnet,
+ * and falls back gracefully to default placeholder if network fails.
+ */
+export async function fetchExchangeRate(
+  network: 'testnet' | 'mainnet' = 'mainnet',
+): Promise<ExchangeRateResult> {
+  // 1. Try CoinGecko public simple price API (CORS friendly)
+  try {
+    const controller = new AbortController()
+    const timeoutId = setTimeout(() => controller.abort(), 4000)
+
+    const res = await fetch(
+      'https://api.coingecko.com/api/v3/simple/price?ids=stellar&vs_currencies=usd',
+      {
+        signal: controller.signal,
+        headers: { Accept: 'application/json' },
+      },
+    )
+    clearTimeout(timeoutId)
+
+    if (res.ok) {
+      const data = await res.json()
+      const price = data?.stellar?.usd
+      if (typeof price === 'number' && price > 0) {
+        return { xlmUsd: price, source: 'coingecko' }
+      }
+    }
+  } catch {
+    // Ignore CoinGecko rate limit / network error and proceed to fallback/orderbook
+  }
+
+  // 2. Try Stellar DEX orderbook (USDC/XLM) on Mainnet Horizon
+  if (network === 'mainnet') {
+    try {
+      const controller = new AbortController()
+      const timeoutId = setTimeout(() => controller.abort(), 4000)
+
+      const base = horizonUrl('mainnet')
+      const params = new URLSearchParams({
+        selling_asset_type: 'native',
+        buying_asset_type: 'credit_alphanum4',
+        buying_asset_code: 'USDC',
+        buying_asset_issuer: MAINNET_USDC_ISSUER,
+        limit: '1',
+      })
+
+      const res = await fetch(`${base}/order_book?${params}`, {
+        signal: controller.signal,
+      })
+      clearTimeout(timeoutId)
+
+      if (res.ok) {
+        const data = await res.json()
+        const topBid = data?.bids?.[0]?.price
+        const topAsk = data?.asks?.[0]?.price
+        const priceNum = topBid ? parseFloat(topBid) : topAsk ? parseFloat(topAsk) : null
+
+        if (priceNum && !Number.isNaN(priceNum) && priceNum > 0) {
+          return { xlmUsd: priceNum, source: 'horizon' }
+        }
+      }
+    } catch {
+      // Horizon DEX query failed
+    }
+  }
+
+  // 3. Fallback placeholder
+  return { xlmUsd: DEFAULT_FALLBACK_XLM_USD, source: 'fallback' }
+}