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Stellar vs. Ripple – Is XML a Better Investment than XRP

May 13, 2018
Stellar vs. Ripple
Which is more valuable to you – Stellar or Ripple?

As an investor, it’s in your best interest to always be on the lookout for up-and-coming cryptocurrencies and networks that could significantly increase your worth. Whether you’re a business owner looking to benefit from a blockchain-based system, or an investor looking for new ways to make money, it’s well worth having your finger on the pulse of what’s out there.

Two seemingly evenly matched networks and cryptocurrencies worth looking at are called Stellar and Ripple. When you’re ready to broaden your financial horizons, consider finding out about what these two networks have to offer.

What is Stellar (XLM)?

Stellar is a blockchain-based ledger with a database that facilitates payments as well as transfers of value. While Stellar is the name of the network, its cryptocurrency is called Lumens or XLM. It’s an open-source network, is a little more limited in the software it can handle, unlike Ethereum but similar to Ripple, and you can use it for making exchanges between fiat and digital currency as well. When you choose to use Stellar and Lumens, you benefit from low fees and fast transactions – two of some of the most important features to consider when you’re looking to expand your portfolio.

What is Ripple (XRP)?

Ripple is not only a company developing and maintaining the Ripple protocol, but it’s also a token called XRP, as well as being an open-source peer-to-peer payment system. You can use it to transfer Ripple and fiat currencies, and it operates similarly to both Ethereum and Bitcoin in the respect that it’s based on a public and shared database. However, it stands out in a league of its own for many reasons including its unique processes and different technological advancements.

Aside from being beneficial for individuals, even banks can benefit from its use. It’s easy to integrate into other systems and doesn’t flout centralization as openly as others. As a result, it’s helping to bridge the gap between banks and cryptocurrency usage. This can only but benefit the aim for them to become mainstream eventually.

What is Stellar’s Value?

As of May 2018, Stellar ranked eighth regarding market cap with $7,003,798,865 USD and was worth 38 cents. It has yet to reach the one-dollar mark, but those who have been watching the price charts since the beginning will know just how much potential Stellar and its coin Lumens has.

It began life on the market with a worth of just 0.002 cents back in August of 2014 and has gradually increased in value since then. Its steady incline shows that it can ride out most market falls while keeping its eye on the prize.

While Lumen’s value might be humble now, it’s only a matter of time before it finds its feet in the market to become one of the up-and-coming coins to be watching.

What is Ripple’s Value?

Ripple’s coin, XRP, is another cryptocurrency that is worth watching. While it hasn’t reached the heights of Ether or Bitcoin, it does have a point of difference that enables its value to only but grow from here. Unlike Stellar, its value has increased substantially more in a short space of time, while ranking three regarding market cap with $29,142,522,562 USD. As of May 2018, it was worth 74 cents, having seen increases of over seven percent.

Pros and Cons of Stellar

Pros –
• The transactions are high-speed and scalable
• Node deployment is seamless
• You can use the network for low-cost financial products
• It’s a free open-source network
• Its value appears to be on the rise
• If you own Lumens, you’re able to vote on where profits (from the transaction fees) should go
• Its future is looking bright – it has partnerships with leading players such as IBM
• It’s affordable to invest in right now

Cons –
• It’s more profitable as a network for creating your own products rather than making money from the Lumens cryptocurrency
• The creators of Stellar own 90 percent of Lumens
• It’s not as well established as other cryptocurrencies available

Pros and Cons of Ripple

Pros –
• It’s one of the best digital assets for making payments
• It’s ranked third on Market Cap behind Bitcoin and Ethereum – making it well worth your consideration instead of Stellar
• It’s designed for use by institutions, not just individuals
• Making cross-border payments is faster, cheaper and easier than ever before

Cons –
• The owners have a lot of control which can be detrimental for if they decided to flood the market with XRP
• You can’t mine for XRP
• The system can be threatened by more innovative products to hit the market
• XRP, even though Ripple has a partnership with over 100 businesses, is still not worth a lot

As an investor, it’s crucial for you to weigh up the pros and cons to determine which cryptocurrency – Ripple or Stellar – is more deserving of your investment. While both these networks have positives and negatives, Ripple does seem to have a strong position in the market. However, they are very evenly matched regarding what their platforms are capable of. Given their evenly matched value, consider basing your decision on the future prospects and technological advancements each network is looking to make.