A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."
Though XRP and Stellar (XLM) were created for very similar purposes, today their price tendencies differ significantly.
Ripple’s XRP and Stellar (XLM) are two projects developed and co-founded by the same person Jed McCaleb, however, their prices movements are very different today. At the time of writing, XRP was trading around $0.192 having dropped 2.03% in the past seven days. On the other hand, XLM was trading around $0.105 having gained 22% in a week. The losses of XRP in 12 months amount 37.8% while the gains of XLM over the same period of time are around 26%.
At the time of inception, both coins were created with up to 100 billion coins, however, in October 2019, XLM community vote ended the inflation mechanism, and the overall lumen supply was reduced in November 2019, leaving the total supply at around 50 billion XLM with no more to be created.
On the other hand, Ripple decided to put almost half of all the existing XRP coins, 55 billion, in escrow and have been selling as incentives purporting to help its customers build on its technology.
Notably XLM is ranked position 14 in terms of market capitalization, whereby it holds around $2.1 billion as of the time of reporting.
On the other hand, XRP is ranked fourth with market capitalization of around $8.5 billion at the time of reporting.
XRP and XLM Comparison
XRP is used as a source of liquidity by RippleNet customers who tap on Ripple’s ODL services. However, due to existing court cases and regulatory challenges, a handful of the customers use the service despite the said advantages of low transaction costs and a fast processing speed.
With both being altcoins that are majorly controlled by central organizations, their prices are heavily controlled by them. However, due to low inflation rate in XLM and also smaller supply rate in comparison to XRP, it has been gaining retailers attention at an unprecedented rate.
Recently, several altcoins have broken out on a major multiyear resistance on the weekly chart and are headed to reach a new ATH including XLM.
The hype is likely to push most altcoins to a new bull wave presumably greater than the 2017/2018 one. If the demand in the altcoin market continues rising as recently observed, a rally is for sure imminent.
XLM technical analysis looks very promising to further the rise. Something that was highlighted by renowned trader Peter Brandt through a tweet.
Future fundamentals on XRP on the other hand remains mostly controlled by Ripple Labs, which has not been crystal clear with the level of ODL implementation and customer reception. This makes XRP weak despite its future prospect of winning over Swift’s cross-border payments.