Reasons Why Stellar (XLM) Is Better Than Cardano (ADA)
Stellar (XLM) and Cardano (ADA) are two exciting projects with the real potential to make it to mass adoption. But which is better? Stellar may not have hype around it, but it's definitely an attractive project in the blockchain. It ranks 8th in terms of market capitalization.
Stellar (XLM) and Cardano (ADA) are two exciting projects with the real potential to make it to mass adoption. But which is better? Stellar may not have hype around it, but it’s definitely an attractive project in the blockchain. It ranks 8th in terms of market capitalization.
Cardano (ADA), too doesn’t command a lot of hype but has risen in value and popularity in the last several months to rank 7th on the market. Even though Cardano may be ahead in terms of market cap, there are reasons that make Lumens better than the former.
Basically, Stellar is a crypto platform that seeks to leverage its network to connect banks, payments providers, and individuals around the world. It’s simply an infrastructure for cross-border payments and targets transforming the unbanked world. It also makes it easy for any financial institution to issue their own tokens that represent fiat currencies.
XLM currently trades at $0.29 against the USD, while ADA/USD trades at $0.21. In terms of market caps, Cardano’s is $5.5 billion while Stellar is slightly behind at $5.4 billion.
Stellar’s adoption growth better than Cardano
The rate at which Stellar is being adopted and accepted globally is higher than that of Cardano. Even though IOHK and Emurgo have secured some partnerships for the platform, the lumens lead when it comes to being adopted. The Lumens is already being used to send money across borders as well as in payments for services. Apart from the role of IBM in fast-tracking XLM adoption, recent events like the partnership with Satoshipay and Register has given lumens an edge over ADA.
Cardano is a 3rd generation blockchain protocol designed to offer a framework for dApps and smart contracts. But it faces stiffer competition from the likes of Ethereum, EOS, NEO, and Waves. Stellar too faces the same challenge, especially from Ripple. However, Stellar’s built-in distributed exchange offers it an advantage.
The SDEX allows people to buy and sell cryptocurrencies just like it’s done at a typical exchange. In addition, it also makes it easy to seamlessly convert one currency to another when making cross-border or cross-currency transactions.
Another advantage of the stellar platform is the ease with which users can launch own tokens. It is so because the platform supports simple programming, unlike Cardano’s. This ease of use means that developers wishing to build Stellar-based ICOs will find it easier.
Compared to Cardano, Stellar transactions cost much less and are thus significantly cheaper than ADA. It costs less than 1 cent to make almost 100,000 transactions on Stellar. It’s also faster taking only 5 seconds to complete a transaction on the Stellar network. It, therefore, means that if it comes to use of XLM and ADA, many users will find the former quicker.
Stellar and ICOs framework
Stellar is quite promising when it comes to ICOs, more than Cardano. And this is better illustrated by the first ICO on the network Mobius. By choosing Stellar and not the then dominant Ethereum meant that the network offered something other platforms don’t.
The lumens network offers an easy but limited ecosystem for creating smart contracts. This limitation helps to reduce the risks of the system being exploited by potentially exploitable code. There’s also the role played by IBM in bringing more clients to the Stellar network, increasing its appeal for several start-ups.
Cardano has a really cool team developing its platform. The value of its peer-review and scientific based approach makes it great. However, the development isn’t as focused as Stellar’s. The ADA roadmap has so many things going, often slowing up progress and disenchanting the community. On the other hand, focus for the latter is on making the native currency adopted globally and thus developments are faster than with the IOHK.
The difference between the two platforms will even be starker when it comes to the issue of attracting banking institutions. Both Stellar and Cardano target this sector, but the former offers a better platform. It’s due to the rate of developing the infrastructure necessary for adoption in this niche. It, therefore, means that lumens have an upper hand and will trump any challenge from Cardano.
Both cryptocurrencies have the potential to make it in the blockchain. However, XLM holds an upper hand in terms of getting to global adoption faster.