The cryptocurrency market has seen increased volatility in recent days, with Stellar (XLM) posting an impressive 9% rally on Wednesday. The rally has reignited debates over whether it can compete with XRP, another cryptocurrency often compared to Stellar due to their technological similarities and institutional adoption. But can this bullish trend last? Could Stellar outperform XRP? Here’s a breakdown.
Why is Stellar (XLM) rising?
🔹 Bullish momentum driven by several factors:
- Bullish market sentiment: XLM’s rally is part of a broader crypto rally.
- Recent developments: Network improvements and strategic partnerships could boost Stellar’s credibility.
- Growing investor interest: XLM activity appears to be accelerating, indicating renewed confidence.
📈 Key figures:
- Stellar has climbed 9% in 24 hours.
- Its trading volume has seen a significant increase, indicating growing demand.
Stellar vs XRP: A Key Comparison
🔎 What do XLM and XRP have in common?
✔ Similar origins: Stellar was created by Jed McCaleb, co-founder of Ripple. ✔ Common goal: Both projects aim to facilitate cross-border payments in a fast and inexpensive way. ✔ Institutional adoption: Stellar and XRP are used by businesses and financial institutions.
📊 Recent Performance Comparison
| Criteria | Stellar (XLM) | XRP |
| Weekly performance | +9 % | Relative stagnation |
| Market capitalization | $3.4 billion | $29 billion |
| Recent partnerships | Strong growth | Adoption stable but slowed by the SEC lawsuit |
| Regulation | Less exposed to risks | Impacted by the SEC vs Ripple affair |
⚠️ Although Stellar is showing strong growth, XRP maintains dominance in terms of capitalization and institutional adoption.
Opportunities and Risks for Stellar
✅ Why XLM Could Continue to Rise?
✔ Expanding Partnerships: Stellar continues to sign agreements with companies and governments. ✔ A Clearer Regulatory Framework: Unlike XRP, XLM is not facing SEC lawsuits, which could reassure investors. ✔ A Growing Ecosystem: Stellar’s platform is attracting more and more developers and financial applications.
⚠️ What are the risks?
❌ High volatility: Like any cryptocurrency, XLM could experience significant corrections. ❌ Still limited adoption: Stellar still needs to convince large institutions to compete with XRP. ❌ Increased competition: Other projects like Algorand or Hedera Hashgraph could capture part of the cross-border payments market.
Conclusion: Can Stellar really outperform XRP?
Stellar is showing encouraging upward momentum, and its more stable regulatory framework could attract some institutional investors. However, XRP remains largely dominant in terms of capitalization and adoption.
If Stellar continues on this path, could it really outperform XRP? Only time will tell, but it is certain that the competition between these two cryptos will remain a hot topic in the months to come.
