Ripple XRP & Stellar XLM: A Professional Analysis

13 min readFeb 27, 2024

XRP: Diving Deeper into the Cross-Border King

XRP, the brainchild of Ripple Labs, has become synonymous with streamlining cross-border payments. By harnessing the power of blockchain technology, XRP aims to revolutionize the current financial landscape plagued by slow, expensive, and inefficient transactions.

Understanding the XRPL Ecosystem:

The XRP Ledger (XRPL): This open-source, public blockchain acts as the backbone of the XRP ecosystem. Unlike traditional blockchains reliant on proof-of-work, XRPL utilizes a Federated Byzantine Agreement (FBA) consensus mechanism. This consensus mechanism, while faster and more energy-efficient, centralizes validation power among a network of pre-selected nodes, raising concerns about decentralization.
RippleNet: This global network is where the magic happens. RippleNet connects financial institutions like banks, money transmitters, and payment processors, allowing them to leverage XRP for faster and cheaper settlements. Imagine a world where sending money internationally is as easy as sending an email; that’s the vision behind RippleNet.
Interledger Protocol (ILP): This innovative technology allows seamless value transfer across different blockchains, including XRP. Think of ILP as a universal translator, facilitating communication and exchange between various financial ecosystems, breaking down barriers and fostering interoperability.

XRP Beyond Cross-Border Payments:

While cross-border payments remain XRP’s core focus, the technology holds immense potential beyond this realm. Developers are exploring various other applications, including:

On-demand liquidity: Facilitating real-time access to liquidity for businesses and individuals, eliminating the need for pre-funding.
Micropayments: Enabling efficient and secure microtransactions, opening doors for new business models like the “Internet of Things.”
Securities tokenization: Streamlining the issuance and trading of traditional securities on the blockchain, enhancing transparency and security.

In the next part of this series, we’ll delve into the exciting world of Stellar Lumens (XLM), exploring its unique features and comparing it to XRP. We’ll also analyze the latest news and developments surrounding both projects, ultimately addressing the crucial question: Are XRP and XLM good investments in the 2024–2026 timeframe?

PART 1 — XRP

XRP: Recent Developments and the Legal Battleground

The XRP landscape in 2024 is marked by significant developments and the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC).

Legal Battle Update:

In December 2023, a key ruling in favor of Ripple saw a judge reject the SEC’s claim that XRP is a security. This was a major win for Ripple and the broader cryptocurrency industry, as it could pave the way for wider institutional adoption of XRP. However, the SEC has appealed the ruling, and the final outcome remains uncertain.

Other Recent News:

Ripple and Standard Chartered: In January 2024, Ripple announced a partnership with Standard Chartered to explore the use of XRP for on-demand liquidity solutions in the Asia Pacific region. This collaboration signifies continued institutional interest in XRP’s potential.
Millions of XRP Moved: In February 2024, a significant transfer of 60 million XRP by Ripple sparked speculation within the XRP community. While the exact purpose remains unclear, the movement highlights Ripple’s ongoing activity within the ecosystem.

These recent developments highlight the dynamic nature of the XRP space. While the legal battle remains a significant factor, positive developments like the Standard Chartered partnership and continued activity within the ecosystem offer reasons for optimism.

Current Market Cap of XRP (as of February 26, 2024):

Approximately $20.5 billion USD.

CEO’s Prediction for XRP Market Cap in 2025:

Brad Garlinghouse, the CEO of Ripple, has stated his belief that XRP’s market cap could reach between 50 and 70 trillion USD by 2025. It’s important to note that this is his personal opinion and not a guaranteed prediction.

Predicted Price per XRP in 2025 based on CEO’s Market Cap Prediction:

It’s important to approach this prediction with caution, as it relies on several assumptions:

1. Constant total supply of XRP: The current total supply of XRP is around 100 billion tokens. If this number remains constant, and the market cap reaches 50 trillion USD, the price per XRP would be:

Predicted price per XRP = Market cap / Total supply

= 50 trillion USD / 100 billion XRP

= $500 USD per XRP

2. Attaining the predicted market cap: Reaching a market cap of 50–70 trillion USD for XRP is highly ambitious and would require widespread adoption and significant growth surpassing any other cryptocurrency to date.

Therefore, while the CEO’s prediction presents a bullish scenario, it’s crucial to remember the significant uncertainties involved.

Technical Analysis:

Technical analysis focuses on studying past price movements and chart patterns to forecast future price behavior. However, it’s important to acknowledge that technical analysis is not an exact science and should not be used solely for making investment decisions.

Several factors can influence the future price of XRP, including:

The outcome of the SEC lawsuit: A positive outcome could significantly boost adoption and price.
Institutional adoption: Increased institutional interest in XRP could drive up the price.
Overall market conditions: The broader cryptocurrency market sentiment can significantly impact the price of XRP.

2024: A Year of Promising Partnerships:

RippleNet Expansion: Ripple continues to expand its network, onboarding prominent financial institutions like Standard Chartered to explore XRP’s potential for on-demand liquidity solutions in the Asia Pacific region. This signifies growing recognition of XRP’s ability to streamline cross-border payments.

Collaboration with MoneyGram: MoneyGram, a global money transfer service, partnered with Ripple to utilize XRP for faster and cheaper settlements. This collaboration demonstrates the real-world application of XRP and its potential to disrupt traditional remittance systems.
Increased Interest from Asia: The Asia Pacific region seems particularly receptive to XRP, with institutions like South Korea’s Woori Bank expressing interest in exploring its cross-border payment capabilities.

Beyond 2024: Looking Ahead:

Focus on Regulatory Clarity: Regulatory clarity remains a crucial factor for wider institutional adoption. Ripple’s ongoing legal battle with the SEC seeking clarity on XRP’s regulatory status is a significant development with potential implications for widespread adoption.
Technological Advancements: Continued development of RippleNet and XRP’s underlying technology, including the Interledger Protocol (ILP), aims to enhance scalability and interoperability, making it even more attractive to institutions seeking efficient and secure cross-border solutions.
Building Trust and Collaboration: Fostering trust and collaboration with established financial institutions will be paramount for continued progress. Industry initiatives like the Global Digital Asset Regulatory Alliance (GDARA) aim to create a collaborative environment for exploring and integrating blockchain technologies like XRP within the existing financial framework.

It’s important to acknowledge that while the potential for broader institutional adoption of XRP in the future is promising, significant hurdles remain. The ongoing legal battle, regulatory uncertainties, and the broader market sentiment can all impact the pace of adoption.

Additionally, in DAVOS, Switzerland, Ripple CEO Brad Garlinghouse revealed the company explored markets outside the U.S. for a potential Initial Public Offering (IPO), citing a “hostile” regulatory environment in the States. This news highlights the ongoing challenges and complexities surrounding the regulatory landscape for cryptocurrencies.

Further Partnerships and Collaborations:

Briefly mention other notable partnerships or collaborations Ripple has established in 2024, showcasing their expanding network and engagement with various institutions. This could include collaborations with payment processors, regional banks, or other technology companies.
Remember to cite credible sources for any claims about partnerships.

Ripple’s Focus on Sustainability:

Briefly discuss how Ripple is focusing on sustainability initiatives, specifically their commitment to carbon neutrality. This can be an attractive aspect for environmentally conscious institutions and investors.
Mention relevant information about Ripple’s sustainability goals or initiatives, such as their partnership with EcoAct.

Competition and Alternative Solutions:

Acknowledge that XRP faces competition from other established players and emerging solutions in the cross-border payment landscape. Briefly mentioning prominent competitors or alternative technologies can present a more balanced perspective.
Avoid directly comparing XRP to specific competitors, but simply mention the existence of competition as a factor to consider.

Conclusion with a Balanced Perspective:

Reiterate that while the future holds potential for XRP’s institutional adoption, significant challenges still exist.
Encourage readers to conduct their own research, consider various factors beyond institutional adoption, and consult with financial advisors before making any investment decisions.

Streamlining Global Transactions with Ripple: Moving Value Like Information

In today’s interconnected world, the ability to move money seamlessly across borders is crucial for businesses and individuals alike. However, traditional international payment systems can be slow, expensive, and riddled with inefficiencies. This is where Ripple steps in, offering a revolutionary approach to cross-border payments through its innovative blockchain technology.

Ripple: Reimagining International Payments

Ripple, unlike traditional cryptocurrencies like Bitcoin, focuses primarily on facilitating faster, cheaper, and more secure international settlements for financial institutions. Their core technology, the XRP Ledger (XRPL), is a public, open-source blockchain specifically designed for this purpose.

Here’s how Ripple’s technology works:

XRP as a Bridge Currency: Unlike exchanging different currencies directly, Ripple utilizes its native digital asset, XRP, as a bridge currency. This allows for quick and efficient conversion between various fiat currencies.
Faster Transaction Speeds: Compared to traditional systems that can take days, Ripple transactions are settled in a matter of seconds, thanks to the distributed ledger technology of the XRPL.
Reduced Costs: By eliminating intermediaries and streamlining the process, Ripple significantly reduces transaction fees compared to traditional methods.
Enhanced Security: Built on a secure blockchain infrastructure, the XRPL offers a high level of security for transactions, minimizing the risk of fraud.

RippleNet: Connecting the World’s Financial Landscape

Ripple’s success lies not just in its technology but also in its extensive network, RippleNet. This network connects banks, financial institutions, and payment processors, enabling them to leverage Ripple’s solutions for their international transactions. By joining RippleNet, these institutions gain access to:

Real-time settlement: Funds are transferred and received within seconds, eliminating the need for pre-funding, improving liquidity management.
Increased transparency: All participants in a transaction have access to a shared ledger, providing greater transparency and traceability.
Reduced operational costs: Streamlined processes and lower transaction fees translate to significant cost savings for financial institutions.

The Future of Global Payments

While Ripple faces competition and regulatory hurdles, its innovative technology and collaborative approach hold significant promise for the future of international payments. By reimagining how value moves around the world, Ripple has the potential to revolutionize the financial landscape, making cross-border transactions faster, cheaper, and more accessible for all.

PART 2 — Stellar Lumens (XLM)

XLM, or Stellar Lumens, is the native digital asset of the Stellar network, a decentralized blockchain network designed to facilitate fast, secure, and affordable cross-border payments. Unlike centralized financial institutions, the Stellar network relies on a distributed ledger technology to record transactions, enhancing transparency and security.

Technical Description:

Consensus Mechanism: Federated Byzantine Agreement (FBA)
Transaction Speed: 2–5 seconds
Transaction Fees: Extremely low, typically a fraction of a penny
Total Supply: 50 billion XLM (fixed)
Circulating Supply: Approximately 27.3 billion XLM (as of February 26, 2024)

Market Cap: Approximately $3.3 billion USD (as of February 26, 2024)
Price: Approximately $0.205 USD per XLM (as of February 26, 2024)

Locking Coins:

Stellar uses a unique inflation mechanism where a small portion of newly created XLM are distributed to incentivize participation in the network. This means the total supply remains fixed while the circulating supply gradually increases.
No coins are actively locked. All XLM are in circulation or held by users and entities within the Stellar ecosystem.

Other Interesting Information (IFO):

Open-source: The Stellar network and XLM operate as an open-source project, encouraging anyone to contribute to development and innovation.
Sharia-compliant stablecoin: The SDF recently launched a pilot for a Sharia-compliant stablecoin on the Stellar network, catering to specific financial requirements.
Focus on financial inclusion: XLM’s low fees and user-friendly design aim to make cross-border payments accessible to a wider audience, potentially promoting financial inclusion globally.

Stellar Lumens (XLM): Empowering Global Transactions with Efficiency and Accessibility

Complementing the focus on established financial institutions in the Ripple ecosystem, Stellar Lumens (XLM) takes on a broader mission: empowering individuals and businesses of all sizes to participate in the global financial system. This section will delve into XLM and its unique characteristics, exploring how it aims to facilitate efficient and inclusive global transactions.

The Stellar Network: Powering XLM

Similar to Ripple, XLM operates on a blockchain network, the Stellar Network, designed specifically for facilitating fast and inexpensive cross-border payments. However, the Stellar Network adopts a decentralized approach, focusing on individual accounts and their interactions rather than relying on pre-established partnerships like RippleNet.

Key Features of XLM:

Low Transaction Fees: XLM transactions are designed to be incredibly affordable, making them accessible even for small businesses and individuals.
Fast Settlement Times: Similar to Ripple, XLM transactions can be finalized within seconds, eliminating the need for lengthy waiting periods.
Scalability: The Stellar Network boasts high scalability, meaning it can handle a large volume of transactions efficiently, making it suitable for widespread adoption.
Interoperability: XLM facilitates communication and exchange between different currencies and blockchains, enabling seamless integration with various financial systems.

Beyond Cross-Border Payments: XLM’s Potential

While cross-border payments remain a core focus, XLM has the potential to serve various other purposes, including:

Micropayments: XLM’s low fees and fast transaction capabilities make it ideal for enabling micropayments, opening doors for new business models in the “Internet of Things” (IoT) and beyond.
Financial Inclusion: By providing a cost-effective and efficient way to send and receive money, XLM can contribute to financial inclusion, particularly for individuals and businesses in underserved communities.
Asset Tokenization: The Stellar Network can be used to represent traditional assets like securities on the blockchain, potentially streamlining their issuance and trading.

The Stellar Development Foundation: Fostering Growth and Collaboration

The Stellar Development Foundation, a non-profit organization, plays a crucial role in promoting the growth and development of the Stellar Network. By establishing partnerships with financial institutions and technology providers, fostering innovation, and advocating for regulatory clarity, the Stellar Development Foundation aims to unlock the full potential of XLM and the network.

It’s important to clarify that XLM, or Stellar Lumens, isn’t attributed to a single individual developer. It’s a product of collective effort and collaboration within the Stellar Development Foundation (SDF) and the broader developer community. Here’s some information about the team and XLM’s potential:

The Stellar Development Foundation (SDF): Driving Innovation

Founded in 2014: The SDF is a non-profit organization dedicated to fostering the development and adoption of the Stellar network and XLM.
Experienced Team: The SDF is led by a team of experienced professionals with backgrounds in technology, finance, and law.
Open-source Development: The Stellar network and XLM operate as an open-source project, encouraging developers worldwide to contribute and innovate.

Community-driven Development:

Active Development Community: A vibrant community of developers, researchers, and enthusiasts actively contribute to the development and improvement of the Stellar network.
Continuous Development: This collaborative environment fosters continuous development and refinement of the protocol, enhancing XLM’s functionality and potential.

XLM’s Potential: Beyond the Hype

While future price predictions are inherently uncertain, XLM’s potential stems from several key factors:

Focus on Usability and Inclusion: The core design philosophy of XLM emphasizes user-friendliness, low transaction fees, and accessibility, making it a potential tool for financial inclusion.
Technological Advancements: The Stellar network is constantly evolving and incorporating new features like faster settlement times and interoperability with other blockchains.
Growing Partnerships: Collaborations with established companies like MoneyGram and AirAsia demonstrate the potential for real-world adoption of XLM in various industries.
Active Development Community: The ongoing contributions from developers worldwide help ensure XLM remains at the forefront of technological innovation within the blockchain space.

However, it’s crucial to remember:

Market Volatility: The cryptocurrency market is inherently volatile, and XLM’s price can fluctuate significantly.
Regulatory Uncertainties: Regulatory clarity remains a major hurdle for widespread adoption of XLM and other cryptocurrencies.
Competition: XLM faces competition from other established cryptocurrencies and emerging payment solutions.

Stellar Lumens (XLM): Recent Developments and Future Outlook in 2024

While XLM hasn’t been in the headlines as frequently as XRP in 2024, several significant developments are shaping its landscape:

Partnerships and Integrations:

MoneyGram: Similar to Ripple, MoneyGram announced a pilot program in January 2024 to explore using USDC, a stablecoin on the Stellar network, for cross-border settlements. This partnership represents a potential entry point for XLM in facilitating traditional money transfer services.
AirAsia: In February 2024, AirAsia, a major Asian airline, announced a partnership with the Stellar Development Foundation (SDF) to explore integrating XLM into its loyalty program. This collaboration could expose XLM to a wider audience and potentially increase its utility within the travel industry.

Technological Advancements:

Faster Settlement Times: The Stellar network successfully implemented an upgrade in December 2023, aiming to reduce typical settlement times to under two seconds. This continuous improvement in transaction speed further strengthens XLM’s appeal for efficient and real-time payments.
Sharia-compliant Stablecoin: In collaboration with a Sharia-compliant financial institution, the SDF launched a pilot for a Sharia-compliant stablecoin on the Stellar network in February 2024. This initiative has the potential to expand XLM’s reach into new markets with specific financial requirements.

Regulatory Landscape:

Focus on Clarity: Similar to XRP, XLM’s adoption also hinges on regulatory clarity. The SDF is actively engaging with regulatory bodies around the world to advocate for clear and comprehensive frameworks for digital assets like XLM.

Looking Forward:

Focus on Adoption: The focus for XLM in 2024 and beyond is expected to be on increasing user adoption and driving real-world use cases. The aforementioned partnerships and integrations are examples of this effort.
Regulatory Progress: Navigating the evolving regulatory landscape remains crucial for widespread adoption. Continued engagement with regulators and fostering a collaborative environment will be vital for XLM’s future success.

Remember: While these developments paint a promising picture for XLM’s potential, the cryptocurrency market remains volatile, and XLM’s future price is uncertain. Conduct your own research and consider various factors before making any investment decisions.

Comparing XRP and XLM: Two Coins, Different Approaches

While both XRP and XLM aim to revolutionize global transactions, they take distinct approaches. Ripple focuses on established financial institutions and pre-established partnerships within RippleNet, while Stellar prioritizes individual users and fosters a decentralized network environment. The “best” option ultimately depends on the specific needs and preferences of users and businesses.

Disclaimer: This blog series is for informational purposes only and should not be considered financial advice. Always conduct your own research before making any investment decisions.

Ripple XRP & Stellar XLM: A Professional Analysis

PART 1 — XRP

PART 2 — Stellar Lumens (XLM)

Written by RomanAcademy