Should we really say that Stellar (XLM) will be better than Ripple (XRP) this year? Well, the obvious thing would be to compare how both cryptocurrencies have done so far this year, according to market indicators, and figure out a way to project how they will perform for the rest of the year, right? Wrong.
Things change all the time, and in the cryptocurrency market, they change even faster than in most other markets. Things will happen to both currencies. New partnerships, improvements in development, announcements, new plans, expansions. Every new development will change the game and will render today’s projection void of any predictive value.
That being said, let’s have a look anyway at how both alt-coins have been doing over the last semester, and then try to take into account some other information that will allow us to see better why XLM will be a better choice this year.
Stellar’s better performance over 2018
As things stand today Ripple is the world’s third cryptocurrency in terms of market capitalization. Its total value is estimated at $27.3billion, and the coin itself (XRP) is valued at USD 0.69. These numbers outdo Lumen’s by almost five times. Stellar Lumen’s market capitalization is $6.1 billion, so it’s currently the eighth one, and it’s being traded at 0.33 USD – so Ripple’s XRP is twice as expensive right now. These numbers could trick you into believing that Ripple is a better option. Don’t be deceived.
The current year has not been kind to cryptocurrencies in general. All the top coins have had a tough time over the last couple of weeks but, even so, data shows that Stellar Lumens has done better than XRP over the previous six months. If we go by CoinMarketCap’s statistics, we will find that XLM has increased by 1.97% in the last thirty days and XRP by 0.86%.
That would seem to put them on a similar standing. But then you would have to take into account what has happened not in thirty but 180 days. Ripple has grown by 190% in that period, which is not bad at all but Stellar has gained 739%, which is way better.
The race for adoption: Stellar could win it
So even based on the last semester’s returns, Stellar should be expected to do better than Ripple, but this prediction stands on the assumption that the markets will keep the same points of view about both coins. But this won’t be so. Every partnership each blockchain project secures changes the way in which the market sees it.
Ripple has done very well in this regard for sure. Some of the world’s biggest banks are already on board and using Ripple to make their international transactions cheaper, faster and more reliable.
But Ripple has been facing trouble too. It’s currently being sued by disgruntled investors (some at least) who believe Ripple is a security and is not playing fair by not presenting itself as such. The whole crypto world will be paying close attention to this lawsuit, but if it fails, Ripple will be the first to feel the negative effects in terms of XRP price.
So Ripple’s had plenty of good news lately, but that single legal fight could become a huge problem for them. Stellar, on the other hand, has no such problems and has been bombarded with good news only. Among the good news is that IBM is promoting Stellar, so banks adopt the coin for international transfers.
This is hell for Ripple because that is supposed to be their turf. IBM has partnered up with Veridium Labs to create a carbon credits market that will work over the blockchain technology using Stellar’s blockchain.
And there’s a good chance that XLM could play a role in the transaction process. Also, the huge influence IBM can have on its partners (which are everywhere in the world and tend to be big players) could give Stellar just enough momentum to leave Ripple behind.
Decentralization vs. (alleged) Centralization
Then there’s the view held by the community about both platforms. Stellar is non-profit, open-source and decentralized, so it’s very popular in terms of credibility, technology, and the blockchain philosophy. Ripple is the opposite in many ways. It’s Ripple Labs’ coin which is centralized (at least as a company), and is putting forward blockchain solutions for profit.
Let’s be clear about something; the XRP coin is actually a legitimate blockchain currency that is not centralized. But it is still too closely identified with the company that is backing it up, and that is not good for its reputation.
It’s wrong, it’s based on misinformation, but perception is the reality at times, and it will play a role. This will make it easier for investors, enthusiasts, and users to trust Stellar over Ripple and that will bring trade.
Stellar is also expanding its platform to serve kinds of transactions other than international payments mediated by banks. Stellar is going for the peer-to-peer market, which means that people who are not within the global banking systems will be able to get a financial service from Stellar.
So it’s not just going for Ripple’s signature market but also expanding it into a place where Ripple dares not go (at least so far). While both projects aim to be the currency of choice for international transactions, Stellar’s strategy of going to the ground will gain them a reputation for enfranchisement and democratization that is sure to work in their favor. Could Ripple try that as well? Maybe, but Stellar is there already, and Ripple is showing no interest at all.
So now you know. When things calm down, and you want to find the coin with better investment value, we would be very surprised if it doesn’t turn out to be Stellar (XLM).
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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While many cryptocurrencies aim to bring the change to the world by bringing full decentralization, one aspect of the crypto space still remains mostly centralized, and that is the way they are exchanged. Most crypto exchanges are centralized companies, where traders and investors need to deposit their coins for safekeeping. This is a risky way to handle the funds, as exchanges remain susceptible to hacks and theft, as many realized recently, after the hack of the world’s largest exchange by trading volume, Binance.
During the hack, around 7,000 BTC (over $40 million) was taken, and sent to multiple wallets, never to be seen again — for now, at least. The hack also came as quite a shock, as Binance was known for its efficiency, security, and high levels of confidence. It also made people realize that their coins are not really theirs if they need to rely on third parties, such as exchanges, to keep them safe. As a result, many are now turning away from centralized exchanges, and are heading towards decentralized ones — also known as DEXes.
Here are some reasons why you might want to consider doing the same.
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Crypto billionaire Mike Novogratz has always been very supportive of cryptocurrencies, and very bullish on Bitcoin. He recently stated that he sees the coins’ prices triple in the following 18 months, meaning that Bitcoin’s return to $20,000 might not be far away, according to him.
He noted that Bitcoin is back to $6,000 after its price hit as low as $3,100 only a few months ago. These days, Novogratz does not believe Bitcoin will return to such lows unless there is a devastating exchange hack or a major shift in regulations. Of course, there was a big hack that had the potential to damage the coin’s price, only days ago. The world’s largest crypto exchange by trading volume, Binance, saw a significant security breach which resulted in a theft of 7,000 BTC.
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The primary reason why blockchain technology is being implemented so quickly is because it solves a lot of the problems typically associated with the traditional business model. And online casinos are no different. It still needs to be said that centralized casinos have proven that there is a great demand for online gambling. The market is growing faster than anyone could have predicted, and future opportunities appear very promising and lucrative. But industries are continually evolving and this one is no different.
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