Ripple and Stellar are natural competitors. Sharing some of the same founders and much of the same technology, it’s in mission where these two blockchains find their starkest difference. In recent days, the crypto markets have been recovering somewhat, after months of punishing price decline. In this time, Ripple XRP buyershave been driving up the price of XRP faster than Stellar Lumens buyers have driven up the price of XLM. Why is this? Will Ripple continue to outperform Stellar in 2019?
No one can tell the future, but we’re inclined to think that Ripple XRP will continue its upward trajectory. Stellar may also continue to succeed, but only if it can start to mimic the success of its forebear. Let’s take a look at why this is the case.
Ripple and Stellar: Twins on Different Paths
At this point in their history, there are numerous technological differences between Ripple and Stellar. But at their genesis, the two chains were very much alike. It’s how they have been applied that has caused them to have such differences in price performance.
Both chains excel at fast transactions, particularly those performed across borders. These transactions are also affordable. Ripple used its power to go to the world of banking. It quickly became integrated in the world of global finance, and numerous banks have accepted it as a new status quo technology.
While Ripple was putting on its business suit, Stellar’s vision was much more punk. Meant to spur innovation in the world of the people, Stellar marketed itself to the unbanked – regular people around the world who needed extra financial options.
Since then, Stellar has become an interesting place for new digital services and assetsto be bought and sold. While Ripple does most of its work well outside of the public arena, Stellar lives and dies in plain sight. While Ripple performs a few functions for huge institutional players (and thrives), Stellar is looking for its killer app, so it can become a leader in the consumer technology landscape.
Ripple may be a bit square compared to Stellar, but at this time in history, XRP’s corporate ambitions are paying off. In fact, Ripple has proven so effective in the banking sphere that we think its ascent will continue through 2019. Stellar may find its killer app in this time, and have a meteoric rise just the same. But if we had to choose just one, we’d go with Ripple.
(*Information in this article should not be taken as investment advice.)