Since the coming to light of the Stellar (XLM) platform late last year, the third generation blockchain has continued to offer tough competition to Ripple Inc.’s XRP. XLM currently trades at $0.2215 USD while XRP trades at $0.3256 USD with the two pretty much out to conquer the cryptocurrency universe. However, with XRP having issues with the lawsuits and centralized arguments revolving the coin, will XLM’s superior platform, increasing partnerships and the recent consideration to list by Coinbase exchange push it past the XRP sensation?
XLM vs XRP
The blockchain technology and cryptocurrency industry has for the past few weeks been suffering but the recent bump in price that saw Bitcoin cross above $6,500 USD positively affected the rest of the market as coin’s registered returns above 10% in a day this week on Monday. Stellar (XLM) is one of these as its price crossed above the $0.2 USD mark after a short spell below the psychologically important price. In as much as the coin has continued to register positive gains in the last 24 hours, the boost in price of Ripple’s XRP in the same period to above $0.30 will test the sustainability of XLM in the market.
In the section below we focus on the factors that are pushing Stellar closer and closer to overtaking Ripple’s dominance in the market.
Ripple endless lawsuits play to Stellar’s advantage
Ripple Inc. and its affiliate, Ripple Labs, Inc., XRP II, LLC have for the past eight months spent days in court as they received a mount of lawsuits due to their operations. Complaints such as manipulation of the distribution of XRP, losses from investment in XRP and operations in Ripple Inc. is causing unrest amongst the community members.
Regulators in the U.S such as the Securities Exchange Commission (SEC) have come out clearly to classify XRP as a security rather than a digital asset which has placed it at a host of rules to follow hence crippling the overall adoption process of the coin. This has seen various investors preferring the adoption of XLM as a form of payment as the transaction times and fees are comparable to XRP.
One major XRP loss from the time spent in court that played to XLM’s advantage is the: Coinbase listing of XLM.
Coinbase considers XLM over XRP
In an article published on Cryptoglobalist, “Coinbase listing Stellar (XLM) will have a bigger impact than increasing price” the author shows the stability impact the overall listing will have on Stellar’s volatile price. When the initial list of 5 coins to be added on the infamous exchange, one coin’s name was missing: Ripple (XRP). While most of the investors mulled and complained about XRP, XLM was slowly gaining popularity across the cryptocurrency community.
This consideration by Coinbase, one of cryptocurrencies most prestigious exchanges, pulled XLM further in a race of two in the transaction world of cryptocurrencies.
With the two coins destined for supremacy given the developments seen on their platforms and continued partnerships with the largest firms across the globe, only one will reign truly supreme in future. XRP needs to solve its persisting lawsuits to have a chance in stopping Stellar’s promising blockchain 3.0 from taking over.