Why Stellar (XLM) and Ripple (XRP) Are Not Necessarily Competing

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Many know that Ripple (XRP) and Stellar (XLM) are different and can, for all intents and purposes, compete against each other. The question to ask is, for what reason? This article provides some insight into why the two cryptos may not be competing against each other at the moment. It could be that in the future they will, but never in the way they compete with the likes of Bitcoin (BTC) and Ethereum (ETH).

Origination of XLM & XRP

Stellar (XLM) was initially based on Ripple's system and aimed to redesign the global economy comprehensively.  The two digital currencies share many similarities as both of them were created by the same person, the CEO of Edonkey, Jed McCaleb. Ripple (XRP) was born from OpenCoin corporation while Stellar (XLM) was born from a non-profit organization (NGO), known as the Stellar Development Foundation, based on Ripple Protocol. Noticing the complexity of Ripple's system, Stellar (XLM) later redesigned itself with a brand new system of its own. Both facilitate international payments, but do so in very different ways.

Processes and Objectives

Banks and multinational corporations use Ripple (XRP) to make international payments. This is done by transferring the XRP token through the Ripple network. The end result is liquidity on demand. Stellar (XLM), on the other hand, allows individuals to trade money directly with each other using Lumens (XLM) as a medium and "anchors" to handle the fiat currency aspects.

Stellar (XLM) and Ripple (XRP) are two of the most advanced cryptocurrencies available on the market and are performing as expected, though we look forward to more. The two cryptos have special designs which set them apart from their competition and helps them thrive when put together. Stellar (XLM) and Ripple (XRP) are well-thought-out as the perfect choice for new investors looking at their impressive performance. They stand a better chance of adaptation when considering the new altcoins flooding the market each day.

Stellar (XLM) and Ripple (XRP) have different objectives and walk different paths. Stellar (XLM) developers are engrossed in helping startups while Ripple (XRP) developers are partnering with banks. The two digital assets are complementary of one another. In the case of any competition between the two, it could be probably based on market cap and also which crypto has the most attention. Stellar (XLM) and Ripple (XRP) can coexist without any problems.

Conclusion 

Stellar (XLM) and Ripple (XRP) technically can compete, as both are considered top choices for new investors with respect to price. However, the two have their own functions and use. If they are to compete, it's going to be for more users and investors. Both cryptocurrencies come at a small price per token, which makes them ideal for mass adoption. Stellar (XLM) is currently priced at $0.192186 per token while that of XRP is $0.450235 per token. 

Both cryptos are facing the same issue, a bear market. Ripple (XRP) seems to have an advantage over XLM, as it is twice the price. Consequently, deciding to invest in one of the two may look tough and you may decide to just own both. Critics argue that with Ripple (XRP) reaching out to large corporations and financial institutions, people might get tired of it. Yet, I don't believe one should avoid buying it, or even both, as they are two different platforms each with unique features.

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Disclosure:

I have received no additional compensation other than the Ethereum that Hade Technologies pays to produce Exclusive content

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