This TabStocks article takes an in-depth look at both Stellar XLM and Ripple XRP to find out what crypto should you invest in
Unlike Bitcoin and Ethereum, Stellar and Ripple don’t slip off your average crypto investor’s tongue in conversation about cryptocurrencies.
But make no mistake both Stellar (XLM) and Ripple (XRP) have a massive following.
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XRP more so, though probably as a result of more pump hype than sound investing advice.
That’s not to say that XRP Ripple should be regarded as the weaker of the two cryptos.
But in order to establish what crypto should you invest in, we need to consider some facts.
Ripple XRP has been in some heavy water with the SEC over many months
Ripple investors had hoped that the lawsuit by the SEC would go away and the price of XRP would go to the moon.
The price of XRP at the time of writing (05 June 2022) is floating around $0.38.8 cents. And has seen lows of 33 cents in 2022. Although most cryptocurrencies are going through a bear market at present.
In 2020 and 2021 the price of Ripple XRP had fallen below 25 cents, but rallied to almost $2 in April 2021. After which Bitcoin began to crash.
And although Bitcoin had recovered by November 2021, and had made a new all-time high of nearly $65,000, this did not help the price of XRP.
Furthermore, for all the hype given in the name of XRP, the price of Ripple XRP had only ever reached almost $3.50 in 2018.
In 4 years Ripple XRP has given more back than it has gained. And exists within its bear trend bubble of woes and hopes.
When we look at the Stellar XLM price chart, we can see that XLM goes with the flow of the general crypto trend.
The XLM price rose in the 2021 bull-run that peaked in May 2021 at a price of reaching almost $0.80.
Today, at the time of writing, the Stellar XLM price is $0.14.16c and the price action is within a weekly green candle following 8 red weeks in-a-row.
3 weeks ago, the Stellar price sunk to about 10 cents. Its lowest price since around November 2021.
Therefore, from 10 cents, XLM recovered well in the bull-run which followed to x8.
Both Stellar and Ripple are altcoins that have existed for about 8 to 10 years. Jed McCaleb is the mastermind behind the creation of both crypto coins.
Ryan Fugger and Chris Larsen teamed up with McCaleb to advance Ripple XRP.
McCaleb teamed up with Joyce Kim in 2014 after falling out with the Ripple team, and together they created Stellar XLM.
At the heart of both XLM and XRP coins is the drive to consume as little energy as possible during the process of creating, burning and transacting coins.
Ripple uses XRP tokens. The technology which powers the XRP tokens is the Ripple network.
International bank money transfers and payment transaction speeds are fast, which saves XRP users time and money.
The Ripple network uses ledger technology and has a backup liquidity float to ensure that it covers the amounts being transacted. Therefore there is no need for a third party middle man.
Ripple is available to be used by individuals as well as financial institutions
XLM or Lumens, the coins of the Stellar network do all that Ripple and its XRP can do. However XLM beats XRP in that the crypto coins are more available and accessible.
XLM coins and the Stellar network has deep roots in the banking system. And the US government take advice from Stellar regarding wanting to introduce the digital-dollar.
Therefore, Stellar is a trusted cryptocurrency provider. This connection with top banks and government bodies is what sets it apart from Ripple and its XRP token.
Also, both XRP and XLM are available to individuals, and Stellar’s XLM Lumen coins are more widely available globally.
Moreover XLM is big in developing countries
When you talk cryptocurrencies you have to consider their global economy impact and not just their hyper-ability impact.
If you want a pump run, then choose XRP, but if you’re looking for a growth cryptocurrency then choose XLM.
This is not to say that Ripple’s XRP will fail, it just means that XLM is a safer bet in my view.
XLM Lumens can be converted into a local fiat currency. Therefore extremely user-friendly. In this respect thus, Stellar’s XLM is ahead of the game.
Although XLM is subject to more inflation than XRP, Stellar is more decentralised than XRP which gives it the upper hand. XRP could collapse as did Terra Luna.
Ripple has a wide reach when it comes to doing business with banks, but so does Stellar.
But Stellar also targets people and overtime this is what matters when it comes to what of the two crypto coins to choose to invest in.
A bit like Facebook, it became great because it has the backing of its users, the people. Therefore Facebook makes tonnes of cash on advertising.
In the short-term Ripple’s XRP has the hype of the pump investors and some connections with banks.
However it will be Stellar’s XLM that will come out on top because it has a wider global population reach. Like it or lump it, you cannot deny the facts.
Due to the SEC court case; the lawsuit against Ripple, XRP has been dumped by some of the largest exchanges.
Ripple sold some $1.3B of unregistered securities. Therefore it has lost the trust of those it does business with.
I think, the clever money is betting on Stellar’s XLM Lumens to go to the moon in the months and years to come.
While Ripple and its XRP is a very risky play that I’m not risking too much of my money on.
In my view, XRP is a short term pump and dump to reward and a long-term risk to liability. While Stellar is a long-term risk to reward to solid profits.
XRP might be a short-term pump for profit, but XLM is a long-term growth crypto with moon destination potential.
Stellar XLM or Ripple XRP: what crypto will you be investing in?
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