Ripple (XRP) and Stellar (XLM) are popular cryptocurrencies with similar origins and goals. XLM was started by a Ripple Labs co-founder, and the two focus on simplifying the payment industry. This article compares XRP and XLM and then identifies the better one to buy.

Stellar and Ripple Labs are two networks that aim to disrupt the trillion-dollar payment industry. They both target this disruption in different ways. Ripple created a network known as RippleNet, which it introduces to banks and other companies in the money transfer industry.

RippleNet is powered by the XRP Ledger, which is an open-source decentralized blockchain and is maintained by a network of independent validators. It is extremely faster with transactions taking less than 5 seconds to complete. 

The first stage is where a sender initiates a payment through RippleNet member institution. After this, the network analyzes the details and finds the best payment approach. It may decide to use XRP, where the cash is converted into XRP and sent through the XRP Ledger, and then the recipient institution converts it into the local currency. 

RippleNet can work without XRP, where it institutions use pre-funded accounts in the destination currency. In this case, RippleNet handles the messaging. 

Stellar is significantly different from Ripple in how it handles payments. It uses the Stellar Consensus Protocol (SCP) to validate transactions. In it, a sender initiates a transaction, the funds are then converted into lumens (XLM), allowing the anchor to issue a tokenized version of USD or any other currency on the Stellar network. 

The funds are then sent to the recipient’s bank, which converts the tokenized payment back to the expected currency. 

Stellar’s network also allows stablecoin payments. It has over $180 million of USDC on its network, allowing faster and cheaper transactions. One of its major partnerships is with MoneyGram, which allows users to send and receive USDC in its branches.

XRP has more catalysts than XLM. First, Ripple Labs’ RLUSD stablecoin is gaining market share in the crypto industry as its market cap jumped to over $300 million. 

Second, Ripple Labs is in talks to acquire Circle, the creator of USDC, a move that would transition it into the second-biggest player in the stablecoin industry after Tether.

Third, Ripple recently acquired Hidden Road, a prime broker handling over $10 billion a day. It hopes to move these transactions to the XRP Ledger network.

Further, XRP has the most spot ETF applications in the crypto industry, and the recently launched XXRP ETF is gaining traction among investors. 

Technically, as shown below, the XRP price has formed an inverse head and shoulders pattern on the daily chart. It has also moved slightly above the 50-day Exponential Moving Average (EMA), a bullish sign.

Therefore, the XRP price will bounce back, and possibly retest the year-to-date high of $3.4, up by 37% from the current level.

Stellar Lumens also has numerous catalysts. First, it has become a major player in the tokenization industry through the Franklin Templeton Money Fund, that has over $400 million in assets. 

Second, Stellar has inked several partnerships with the likes of Mastercard, MoneyGram, Visa, and UNICEF. These partnerships help to make the case for its payment network.

Further, while no company has applied for a spot XLM ETF, there are chances that one will over time. 

The daily chart shows that the XLM price has formed an inverse head and shoulders pattern and a falling wedge pattern. It has also moved above the 50-day moving average, pointing to an eventual rebound to the 2024 high of $0.6415, up by 104% from the current level. 

Therefore, XRP and XLM are both good coins to buy. In most cases, XLM mirrors the performance of XRP. as such, if XRP rises to $3.4, there is a possibility that XLM will also spike. 

Read more: Stellar price prediction: here’s the outlook for the XLM token

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