Does Stellar (XLM) Have Enough Power To Catch Up With Ripple (XRP)?


The simplest distinction between Ripple (XRP) and Stellar (XLM) has been that the former was developed to transform the banking and financial sector by making cross-border payments faster, and cheaper.

The latter, on the other hand, arose out of the need to solve the shortcomings witnessed with Ripple. So, it could be that these are two sides of the same coin.

However, a lot has since transpired to set them apart, even if transforming the payments and money remittances remain their core business.

XRP vs. XLM – what the market looks like

Ripple (XRP) is ranked 3rd in terms of market capitalization, currently at $24.11 billion. The coin is trading at $0.61 against the USD and has seen a total of over $265 million of its coins traded in the last 24 hours.  Its all-time high price is $3.84 reached on January 4, 2018.

The last three months have been tough on crypto assets and XRP happens to be one of those that suffered greatly. Compared to the current value, the coin has lost about 31%. Even then, the token retains the potential to make further gains towards a new high.

Stellar (XLM) is ranked 8th on the market and has a market cap of $5.4 billion. Its latest trading value is $0.29 against the US dollar. Over the last 24 hours, a total of about $80 million worth of Lumens have been traded. The lumens all-time high price is $0.91 reached on 3rd January. Like the rest of the market, the XLM has also lost value. However, over the last three months, Stellarlumens have performed slightly better, dropping by just 5%. Though it may seem better, the coin has gained much either.

What could work for Stellar (XLM)?

Much of what Stellar needs to do heavily rely on the magnitude of support it eventually gets from its biggest partner IBM. It’s the best possible route for the coin towards mass adoption, something that could make XRP struggle. If the tech giant succeeds in taking XLM to the banks, then it could hurt Ripple’s chances of completely dominating the space.

At the moment, the platform has a positive public investor about it, helped more by the fact that it’s viewed as being more decentralized than Ripple. This can be an asset as it tries to win over more partners. Especially important will be its commitment towards finding a working financial solution that would bring in third world countries. If it conquers the unbanked who have no access to banks, then that can help push it towards global adoption.

Stellar could also profit from the positive sentiment around it and the fact that it’s seen as a safer bet of the two. While its growth is somehow slower, it represents a lower risk and many investors could pick it up as a hedge against other coins.

What’s Stellar’s challenge?

The main problem is that Ripple too has some momentum going and it won’t be wise to write it off. The efforts of the team in gathering global partners can’t be matched by the Stellar team. Although any bull run may favor XLM, it still has a lot to do in terms of market presence. Even with a kind of negativity about it, the coin does have its own advantages, especially with recent developments in its xRapid technology. So, the challenge is for Jed and team to establish a market presence and ride on the euphoric sentiment that its community exudes.

Who has the edge- Ripple or Stellar?

Ripple appears to have an edge in terms of the fact that it has a larger market cap, higher price value, and higher daily trading volume. However, Stellar’s growth potential means it could catch up if it gathered enough momentum.

The one thing to note is that the two coins have developed to have different purposes. And this could give XLM an edge towards global adoption.

XRP is targeted at multinational payment providers and banks while Stellar wants to reach the millions of unbanked individuals.  It means that lumen does need to get momentum from somewhere else if it has to catch Ripple.

The potential is definitely there, but does it have the steam to last the mile?

Leave A Reply

Your email address will not be published.