Stellar Lumens gained over 11.6% to XRP’s 8.6% on a day that saw both coins settle in the green. This is good news for investors of the two competing payment currencies.
In case you are here and don’t know the back and forth of Stellar coin and Ripple coin, here is a brief low down.
Stellar and Ripple- Two sides of the same coin
Let’s be clear on one thing: Stellar and Ripple could be one and the same thing, yet they aren’t. The founder of Stellar Jed McCaleb was once with Ripple, so we could say he knows the ins and outs of their competitor quite well.
Stellar (XLM) is an open-source cryptocurrency that seeks to provide a platform for payment using blockchain technology. However, Ripple differs slightly as its network isn’t open-sourced.
The former utilizes the Federated Byzantine Agreement (FBA) algorithm, which enables it to have faster transactions of up to 1000 tx/s. ripple uses a different approach to reach consensus. It’s called the Ripple Protocol consensus algorithm (RPCA), a proof of correctness mechanism. It can reach transaction speeds of up to 1500 tx/s.
The race for partnerships
It seems that whoever brings on board the best, and the most sought-after deal could have an edge over the other. It’s a fact that both cryptocurrencies aim at helping financial institutions and payment providers make cross-border transactions.
While this is their core aim, the two differ when it comes to the targeted clients. Ripplenet is aimed at global banking institutions and multinational payment providers. As a result, it has signed partnerships with several banks in Japan. In addition, it has deals with global money remittance providers like Western Union, MoneyGram, and Fleetcor.
On the other hand, the XLM network primarily targets emerging markets. It wants to facilitate cross-border remittances mostly for the unbanked. One of their main partners so far is IBM, which will facilitate their project in several countries in the South Pacific region. Others include Deloitte, Stripe, and Keybase, which will provide worldwide access using its mobile app.
Stellar vs. Ripple in recovery mode?
I started by pointing out that Stellar (XLM) had edged XRP in the hour-to-hour trading at the time of writing. Though XLM’s gain was remarkable, clawing back as much as +20% value gain, XRP too had a good time of it.
It would be fair to say that though the market is still bearish, signs for both coins can’t be better. Incidentally, these two were among the worst performers over last week. For example, XRP plunged from a high of $0.98 on 13th March to a low of $0.52 before today’s gain that sees it trade at around $0.72.
XLM on its part dropped from about $0.32 on the same day to a low of $0.16, before it jumped to $0.248. It’s interesting to note that XLM gained double figures on both the USD and BTC. The main source of optimism comes from the fact that the gain is in tandem with BTC’s price gain. It is expected that Lumens will form a support base at $0.28 as it looks to break the resistance line at $0.30. Over the next few days, expect XLM to trade well above the $0.32 mark.
Stellar appears to be in a better position heading into the new trading week. We can’t discount Ripple over the next seven days, but today, Stellar Lumens carries the day.
XLM vs. XRP: who needs an injection of good news?
It has to be Ripple. Sentiments aside, that nagging court case with R3 HoldCo is not good for investor confidence. And that seems to have come at the right time. First, Rippe (XRP) was added to the Abra Global wallet app. That was good news after the recent disappointment of not getting onto Coinbase.
That’s not all. Ripple’s improved performance could be as a result of easing sentiment in the market, a trend that is also replicated by the other cryptocurrencies. Nevertheless, a lot of the positivity seems to have emanated from the news that XRP was now listed on BitBay.
The BitBay cryptocurrency exchange is the biggest in Poland. Now XRP/PLN, XRP/USD, and XRP/EUR are available, helping Ripple to gain further traction.
Our say; your say
I believe Stellar (XLM) has managed to capture support from its community and is likely to be better long-term compared with Ripple (XRP). Who do you think has the better chance of revolutionizing cross-border payments and remittances? Let us know your opinion; drop us a comment.