Stellar and Ripple are two of the largest payment-focused cryptocurrencies in the world. Ripple’s XRP has a market cap of over $25 billion, while Stellar’s XLM is valued at over $2.5 billion. Another similarity between the two is that Stellar founder Jed McCaleb was one of the co-founders of Ripple. So which is a better buy between XRP and XLM?
The case of XRP
The price of XRP has plummeted by 40% this year. While the coin has underperformed the S&P 500 and the Dow Jones, it has done better than most cryptocurrencies such as Bitcoin, Stellar, and Ethereum. It is up more than 73% from its lowest level this year.
XRP has done better than other cryptocurrencies in recent months due to the ongoing Securities and Exchange Commission (SEC) case. Last month, the supervising judge ruled that the SEC should provide Hinman documents, which was seen as a victory for Ripple. As such, analysts expect the company to have a higher chance of winning the case.
XRP has also risen due to partnerships amid ongoing cases. For example, this week it partnered with companies like I-Remit and LemonWay, a leading payment in France and Sweden.
Therefore, there is a probability that the XRP Price it will continue to rise as the bulls target the next key resistance level at $0.6595, which is about 32% above the current level.
Stellar faces challenges
Stellar is a blockchain project that makes it possible for people to store and move money. It has a platform that allows people to create digital representations of money such as pesos and US dollars. Stellar is primarily used by fintech and other money transfer companies like MoneyGram and Wyre. XLM, its native token, has seen its price drop by more than 60% this year.
USD Coin is one of the biggest use cases for Stellar. Circle used it to build their stabilized USDC, which is one of the most popular stablecoins in the world, with over $45 billion in market capitalization.
A key challenge for Stellar is that Binance, the world’s largest exchange, converted its USDC balances to Binance USD. At the same time, Circle’s plans to go public in New York stalled.
The bottom line
Stellar Lumens and Ripple are some of the largest paid cryptocurrencies in the world. While the two coins have a correlation, there is a chance that Ripple’s price will be better than Stellar’s. Also, it has a catalyst in the ongoing SEC vs Ripple case.
How to buy Ripple
eToro is a global social investment brokerage company that offers more than 75 cryptocurrencies to invest. It offers commission-free cryptocurrency trading and platform users have the option to invest manually or socially. eToro even has a unique CopyTrader system that allows users to automatically copy the trades of popular investors.
Buy XRP with eToro today
OKX is one of the leading cryptocurrency exchanges that offers more than 140 cryptocurrencies to invest. OKX takes customer security very seriously, they store almost all of their customer funds in cold storage, and the exchange has yet to be hacked. In addition to this, the exchange offers very low fees and customers can even use their cryptocurrency as collateral for loans on the platform.
Buy XRP with OKX today