XRP vs XLM: Which Crypto is The Best Investment

Emmer Introduces Bill Seeking SEC Chair Gensler's Removal, Targeting Crypto Regulation

Since Bitcoin first appeared as an alternative payment method, interest in digital currencies has gradually risen. Thus, the era of cryptocurrency trading has begun, and investors are now continuously searching for more lucrative investment opportunities. Consider learning more about XRP and XLM, two of the top competitors for digital currencies.

Although Jed McCaleb co-founded both of these currencies, their use cases, market dominance, and inherent risks and benefits differ dramatically. This blog post compares these two assets in great detail.

Understanding XRP

Ripple (XRP) is a brand-new cryptocurrency that accommodates lightning-fast cross-border payments. With the XRP blockchain network, the average transaction period takes only 3-5 seconds. The commission fees are also minuscule compared to major coins like Bitcoin and Ethereum.

The cutting-edge Blockchain methodology, open-source internet protocol and streamlined consensus mechanism allow XRP to deliver an optimised way to manage international transactions securely.

In 2012, Chris Larsen and Jed McCaleb founded XRP to break new ground in international transactions. Their unique ‘xRapid’ protocol is designed to enable financial institutions to access a cost-effective bridge for international payments.

XLM Defined

Stellar (XLM) was also co-founded by Jed McCaleb in 2014 with a mission to accommodate fast and cost-effective international transactions. However, XLM’s underlying Blockchain network also allowed the development of various decentralised applications, letting users build a robust ecosystem around lightning-fast payment systems.

Similarities Between XRP and XLM

As outlined above, XRP and XLM were created to simplify and improve the international payments landscape. Each coin has an average processing time of 3-5 seconds, an astronomical improvement over conventional fiat transfers. The commission charges for both currencies are also dramatically lower when compared to cumulative SWIFT transfer fees.

XRP vs XLM

Despite their similarities, XRP and XLM have several distinctive features that investors must consider. While XRP currently has a higher market capitalisation and trading volume, XLM’s high upside and strong team should also be considered.

Additionally, XRP is currently undergoing a federal lawsuit by the SEC. The outcome of the XRP vs. SEC dispute will determine the future of Ripple. If successful, XRP could become one of the household names in the crypto transaction processing sector, but if not, Ripple could join the ranks of volatile crypto assets.

On the other hand, XLM is gaining momentum and slowly accumulating an impressive market cap. The upside of XLM looks more promising than ever, thanks to the diligent strategies and emphasis on security.

Which Crypto Is Right For You?

Both Ripple and Stellar present exciting cases and should be evaluated carefully.

While Ripple is a much more popular and established currency, its recent lawsuit is a massive signal for potential trouble. The company might face severe consequences if the lawsuit proves the illegal nature of XRP’s $ 1.3 billion securities sale.

On the other hand, XLM has a long way to go before catching up with XRP. However, XLM’s commitment to decentralisation and convenient cross-border payments is a good signal for investors. XLM increased its market cap by $1 billion in just a year, going up from $2.2 Billion to $3.2 Billion, which is an impressive development.

Thus, While XRP is a better investment in the current landscape, the present SEC lawsuit and XLM’s steady emergence could shift this status quo.

Final Takeaways

While XRP prioritises scalability to accommodate its vast user base, Stellar aims to make banking procedures available to third-world countries and other underdeveloped markets. Both platforms have ambitious goals for the future, and it will be interesting to see which one, if both, are successful in their efforts.

Investors choosing between XRP and XLM should consider liquidity, market volatility and other significant factors in the Blockchain landscape.