Ripple vs Stellar, XRP vs XLM: Fight Intensifies Between the Two Cryptocurrencies to Become the King of Payments Space

Cryptocurrencies have managed to garner phenomenal popularity in the past few years. Companies have been taking serious efforts in order to find newer opportunities for adoption and real uses.

Digital tokens came into existence with the sole motive of creating a potent alternative for fiat currencies. However, it has been quite difficult to find real use cases, as users have been skeptical about the adoption of cryptocurrencies. Fortunately, the trend seems to be shifting.

Several businesses across the globe have now started to accept cryptocurrencies as payments. Also, a significant surge has been recorded in crypto-based global payments. Several established sectors are now providing the option of paying through digital coins. VISA Inc. stated last month that it is integrating blockchain technology with its global operations in order to facilitate payments through electronic money. Using cryptocurrencies for payments is cheaper, takes less time and is extremely secure, which make it apt for the role.

American tech giant IBM also launched a blockchain based global payments platform, World Wire, last month, in conjunction with Stellar Coin. In fact, even Facebook is working on a Stablecoin to enhance cross-border payments. All of these efforts indicate that cryptocurrencies can be extensively used for making payments.

Ripple has been one of the most used platforms for making payments. The blockchain platform aims to become users’ first choice for cross-border payment settlements across the globe. Ripple already has quite a few aces up its sleeves, like xRapid, xCurrent, and XRP, which have turned out to be excellent instruments for global payments.

In fact, Ripple and xRapid were applauded by none other than the World Bank, for providing excellent remittance services, especially in underdeveloped countries. xRapid has reportedly brought down costs of funds transfer by up to 70%, which is insane. As of date Ripple is leading payments settlement space.

However, the Ripple’s throne is expected to face a stiff challenge from rival Stellar blockchain program. Stellar, too, aims at becoming a global leader of payment settlements. The blockchain platform has also been taking giant strides in the payment space, partnering with several big corporations, including IBM. It has also partnered with a few e-commerce platforms.

Both blockchains are similar in structure, however, they differ in implementation. The major difference lies in the fact that both the platforms are targeted towards two different set of users. Ripple aims to become the best in business by working with banks and other financial institutions and offering them the technology required to execute global transactions faster while reducing costs and increasing security.

On the other hand, Stellar eyes to get the top spot by catering to individual crypto investors. This might not seem as big as Ripple, but that’s only an illusion. The crypto space kept expanding at 122% in 2018, in spite of the fact that the market experienced its worst bears throughout the year. This shows the huge potential which the market holds for Stellar, as the percentage of individual investors is much larger than that of banks and financial institutions. Before investing in XLM you should check future predictions for Stellar by experts to get more information about the future market of XLM.

So which token should you hold? Ripple backed XRP is currently ranked third, while Stellar backed XLM is the eighth largest cryptocurrency. Both of these digital tokens are almost similarly priced and are the best in the sub-one-dollar category. The major difference is the market cap, which isn’t expected to have any major effect.

On paper, they look quite similar, despite having inherent differences. However, both the currencies can coexist without hurting the other. Therefore buying either of them will do for anyone looking for future stability and liquidity.

But as experts across the globe suggest, diversifying the portfolio is crucial for maintaining investment stability. Hence, buying both is highly recommended.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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