Stellar vs Ripple (XRP vs XLM) : Which Currency will be the Winner?

xlm vs xrp

If you are a cryptocurrency enthusiastic then definitely you will be aware of Stellar and Ripple, well-known blockchain platforms to make your transactions more smooth. People always compare both platforms as their blockchains are quite similar. Both not only works on a blockchain technology but also functions as powerful crypto coins. If you wanna differentiate each of them then you must observe our article carefully. Here in Stellar vs Ripple, we will analyze both and find out which currency will be the winner.


The initial thing which we wanna discuss in Stellar vs Ripple is the understanding of both cryptocurrencies. Ripple is the creation of Chris Larsen and Jed McCaleb, American programmers. They founded ripple in 2012. Ripple’s digital currency is known as XRP and also considered the third largest cryptocurrency. Still any confusion in Ripple and XRP? Guys, Ripple is the technology and XRP is the token. The main motive of Ripple’s technology is to make transactions fast and reliable. In fact, Ripple is the victory over cross-border payment system, slow transactions, higher cost.

When you transfer money via cross-border then you need the third party but Ripple hinge on distributed ledger technology so it ends up the third party need. It also reduces the time and lessens the cost in transactions. Ripple also offers liquidity so it is very favorable for banks. The notable factor is that the focused audience of Ripple are banks and everyone can adapt it for a smooth experience.


Next thing to understand in Ripple vs Stellar Lumen is what is Stellar exactly? Jed McCaleb the co-founder of Ripple has found the Stellar in 2014. Like Ripple and XRP here is also two different terms. Stellar and XLM, Stellar goes for technology and XLM (Lumen) is the cryptocurrency. Stellar works like Ripple and allow its users to send and receive fund quickly and at a low cost also. Technically, XLM is also having shorthand codes ISO 4217.

In 2015, To keep things simple and clean, the name of stellar changed from stellar to luman mainly for 2-reasons

  1. To distinguish the stellar network from lumen coin itself. They are not separate, it’s  just the 2-different terms to make things simple.
  2. To distinguish it from which is again a non profit organization.

The main difference between the both is that who are adopting these technologies. Lumen is developed for an average user but banks are also using it. The main motive of Stellar is to encourage the global economy in poor and less developed countries by giving them quick and cheap transactions. Stellar changes the sender’s currency in XLM (Lumen) and after it changes the XLM in receivers currency.

Stellar vs Ripple: Similarities and Differences

There is a huge similarity between XRP vs XLM and one can think easily that there is no need for all the two. Both have:

  • Personal nodes which don’t allow mining
  • Depends on distributed ledger technology
  • Offers you quick and cheap transaction which make them perfect for international transactions.

Although both look twins, there are huge differences between Stellar (XLM) and Ripple (XRP) which indicates for the need of both. So guys continue to read if you wanna know their differences.

Lumens vs Ripple: Goal

There is a great difference between their goals. Ripple’s motive is to provide the smooth and hassle free transaction for banks. In return, Stellar earns a great profit as the banks have the huge market. On the other hand, the goal of Stellar is to provide financial services across the world and also for the poor ones. As a result, Stellar is a non-profit firm and Ripple is working on money making model. There is a visible difference in their goals.

Stellar vs Ripple: Nature of tokens

Another key difference between Stellar and Ripple is the nature of coins. XLM coins are inflationary which increases the circulation and on the other hand, XRP are deflationary which decrease the circulation.

Stellar vs Ripple: Size of organization

Another factor which differentiates both is the size of the organization. Ripple has a large organization and their target audience is banks. Stellar possesses a small organization but has experienced staff and their targeted audience is poor and less developed countries. Ripple give emphasis on money making whereas Stellar is a non-profit organization.

Stellar vs Ripple: Market rank

Stellar and Ripple all the two are well-known names of the crypto market and also have the same price. Depending on the market capitalization, Ripple’s XRP is on number 3 and Stellar‘s XLM is on number 6.

XLM vs XRP: Availability on Crypto Exchange Platform

Whether it’s poloniex, Binance or any other popular non popular crypto exchange platform, XLM and XRP both are available on almost all platforms and you can trade it anywhere.

Which currency will be the winner?

Now the question is which currency will be the winner but it is really tough to get the exact answer. Cryptocurrency’s world is ever changing and also unpredictable so how can we get the reliable answer. The market of XRP (Lumens) is about $135 billion and XLM’s is $14 billion and there is a visible difference in their market cap and Ripple is ahead.

Another thing which makes Ripple best option is that Ripple has a partnership with well-reputed banks and also making new relations with financial groups. If you invest in Ripple then there are more chances of profit. More than 100 banks are currently amalgamated with Ripple.

Stellar has enough potential to give a less costly and seamless exchange of currencies. Moreover, Stellar is more decentralized which makes it more adaptable. In the future, there will be the trend of decentralization and that time Stellar will become useful.

In fact, both are not the competitor of each other and have different technology and market also. They can coexist and it will be totally wrong when we consider the one winner.

Final verdict

The motive of Lumens and Ripple is to make transactions quick, cheap and easy and both are successfully doing their job. Ripple is two years more experienced and focuses on money making and Stellar works for the poor countries. Both have good reputation and rank in the crypto market and no one can compete for each other. In the end, I would like to say that both can coexist because of their different features and goals also.

Still, any query regarding Stellar and Ripple then comments below and also share your experiences regarding these currencies. If you have your own thoughts and you want to pass them then share with us. For more updates stay connected till then goodbye.

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About the Author: Versha Gupta

A passionate writer with positive attitude towards life and seeking for opportunities. Believe in accepting challenges for exhilaration of victory. Connect with her at Facebook page

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