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XRP vs XLM? Which is better?

 If you are interested in cryptocurrencies that facilitate cross-border transactions, you might have heard of XRP and XLM. These two coins are often compared and contrasted, as they share some common features but also have significant differences. In this blog post, I will give you a brief overview of XRP and XLM, and how they differ in terms of vision, network design, monetary policy, and market performance.




XRP is the native currency of the Ripple network, a payment settlement and asset exchange platform that mainly targets banks and financial institutions. Ripple was launched in 2012 by Chris Larsen and Jed McCaleb, with the aim of providing a faster and cheaper alternative to the traditional SWIFT system. XRP serves as a bridge currency that can be exchanged for any other currency on the Ripple network, with little to no fees and little time to transfer. XRP is deflationary, meaning that its supply decreases over time as some coins are burned in each transaction.


XLM is the native currency of the Stellar network, an open-source platform that enables anyone to send money and assets globally. Stellar was founded in 2014 by Jed McCaleb, who left Ripple to create a more inclusive and accessible network for the unbanked. XLM is used as an exchange medium on the Stellar network, which also has a built-in order book that allows users to trade any asset on the platform. XLM is inflationary, meaning that its supply increases over time at a fixed annual rate of 1%.


Both XRP and XLM have similar mechanisms for operation, but they differ in their target markets and use cases. XRP is mainly used by banks and financial institutions that want to improve their efficiency and reduce their costs in cross-border payments. XLM is more focused on serving the markets in underdeveloped countries, where many people lack access to banking services and rely on remittances and micro-loans. Both coins have received support from various organizations and partners, such as IBM for Stellar and TransferTo for Ripple.


Both XRP and XLM have limits to how many coins are available. Mining is not available for either cryptocurrency, as all coins available are already minted. XRP features a maximum supply of 100 billion coins, while XLM has 50 billion. About half of each is in circulation as of October 2021. Notably, the majority of Ripple is held by its development team and early investors at this time. The firm releases these coins at a rate of 1 billion a month.


Both XRP and XLM have shown significant growth and volatility in the cryptocurrency market. As of October 2021, XRP ranks 6th by market capitalization, with a price of $1.12 USD per coin. XLM ranks 21st by market capitalization, with a price of $0.34 USD per coin. Both coins have experienced highs and lows over the years, depending on various factors such as regulatory issues, network updates, partnerships, and market sentiment.


In conclusion, XRP and XLM are two cryptocurrencies that aim to revolutionize the way money and assets are transferred across borders. They have some similarities in their technical features and functions, but they also have distinct differences in their vision, network design, monetary policy, and market performance. Depending on your preferences and needs, you might find one or both of these coins appealing for your portfolio or transactions.

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