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).
For the latest cryptocurrency news, join our Telegram!
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.
Image courtesy of Pixabay via Pexels.com
XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.
The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.
NFTs are already being actively traded in markets globally. For…
Should Crypto Projects Devote Resources to Community Growth and Marketing?
2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for. While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory. When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion. But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.
I mention both of the above projects as they have each taken slightly different paths to achieve greatness. Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion. Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special. Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.
Cryptocurrency vs. Blockchain Technology
It’s important to make a distinction between blockchain technology and cryptocurrency. Although they are often used interchangeably, they are different. Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…
XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata
Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //
The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.
As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021.
“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.
He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”
Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”
Mr. Yamagata has been…