IBM-Backed Stellar (XLM) Looks To Give Ripple (XRP) A Run For Its Crypto
XRP Experiences Increased Competition From Stellar
The cryptocurrency market has always been very competitive. There are thousands of different projects that appeared in the market, and some of them are very similar. XRP is working very hard in order to keep its dominance as the third most valuable virtual currency. However, there is a well prepared and interesting competitor that is getting closer. We are talking about Stellar (XLM), which is currently the sixth most important crypto.
Both, Ripple and Stellar, want to create a cost-effective and widely adopted network to transfer money around the world. At the moment, SWIFT is still the most important network used by banks and financial institutions worldwide to transact money. However, it is very inefficient since it is slow and expensive.
Ripple and the virtual currency XRP are investing very hard in some markets such as in India. The remittance industry is also important in the Asian country, and Ripple is doing everything as possible to control this market. The XRP cryptocurrency is able to provide access to safe and secure transfers for those individuals that are unbanked and that need to send or receive money.
Nonetheless, as XRP grows, Stellar is also trying to play an important role in this landscape. Some time ago, Stellar was able to sign a partnership with IBM in order to create a DLT-powered payment system.
Stellar and XRP are currently providing important services in different parts of the world. Cheap and almost instantaneous transfers are helping several parties benefit from it. But there are several countries that are not used to these kind of transaction mechanisms. That’s why, the efforts that Ripple and Stellar are doing are very important.
In the last months, there were some rumors related to a possible listing of Stellar on the Coinbase platform. Coinbase is one of the most important cryptocurrency exchanges in the world. Stellar works in a very similar way to XRP.
In the past, there were several discussions about why XRP is not listed at Coinbase. The Los Angeles-based company did not provide any specific information on the matter. However, it is possible to know that the U.S. Securities and Exchange Commission has not clarified its position on whether XRP is considered a security or not.
There are also some complains about XRP being centralized. Ripple is trying to distantiate itself from the XRP cryptocurrency.
Since the beginning of the bear market at the beginning of the current year, XRP lost more than 90% of its value. It will be important for XRP and Stellar to have good strategies. Ripple should properly distantiate itself from XRP and Stellar should move forward with IBM creating a functional product.