Ripple and Stellar Lumen share a co-founder and a technology foundation. However, altcoin projects with different missions and operating models. Stellar is a virtual Robin Hood that aims to democratize digital payments in developing countries and unbanked populations. A $1 XLM is not easy given the volatility of the crypto market. However, it will represent a significant jump of around 570%, which is a possible success. Crypto expert Anders Bylund looks at the story of the two altcoins and evaluates the $1 price.
The story of two rival altcoin projects
As the dust of Ripple’s (XRP) SEC saga settles, many of us are watching the next potential star of the crypto scene. Today we’re turning the telescope into Stellar Lumen (XLM), an altcoin that has roots in the Ripple ecosystem and saw a 46% increase in price the day Ripple won in the courtroom. However, its current value is just under $0.15 per token. So, can Stellar reach the $1 limit? Let’s find out.
First, let’s take a quick history lesson. Stellar and Ripple share a lot of digital DNA. Both were founded two years apart by the same crypto visionary Jeb McCaleb. Although they came from the same origin, they followed different trajectories. In addition, they pursue different goals today.
Let’s take a closer look at Stellar and Ripple
Ripple has always been the banker for the two of them. Used in Ripple’s payments ecosystem, XRP acts as a bridge currency that enables efficient exchanges between different national currencies. It facilitates real-time global transactions, enabling financial institutions to transfer money across borders quickly and at low cost. Cryptokoin.com’As you follow, Ripple is establishing local currency translation services with global banks. In addition, their systems are ready to serve billion-dollar transactions between financial whales in different countries.
On the other hand, Stellar positions itself as a Robin Hood, the champion of the people in digital finance. Its mission is not to engage the big banks, but to make financial services accessible to the unbanked by using XLM tokens as the key to financial inclusion. It provides a platform for individuals and small businesses to develop accessible financial products and services. Stellar will gladly nurture financial products and services for a localized population. Also, international payments will be available as a beneficial side-effect rather than a sharp business focus.
The two projects are both managed in significantly different ways and this is important. McCaleb started the Stellar project in 2014 as a Ripple clone. Because he didn’t like the management style that runs the Ripple network. The XRP token is managed by Ripple Labs, a for-profit company under CEO Brad Garlinghouse. There is a company, a CEO, and a board of directors holding the strings for development and future plans. The servers that power Ripple’s Blockchain network are owned by Ripple Labs. The Stellar Blockchain network and Lumen token are completely decentralized. They also have a public community and administration. Like Ethereum and Bitcoin, the future direction of Stellar is driven by voting and adoption of the technology among the project’s developers and transaction verification nodes.
Is $1 in the stars for altcoin?
Back to the million-dollar question: Is it possible for Stellar to take his cosmic journey for $1? If we do a quick calculation, a $1 XLM represents a stratospheric jump of about 570%. It sounds terrifying. But keep in mind that the crypto market earned its reputation for volatility the hard way. You won’t see this token soar by 46% in a single day. Maybe it will never happen again! But a more reasonable growth trend will eventually get there. If XLM gains 15% per year, it could reach $1 in 11 to 12 years. At 30%, which is a less realistic average growth rate, it will be 7 to 8 years. After all, no one said getting rich would be quick and easy.
The road ahead may be profitable, but it will not be easy!
So, Stellar should be able to generate an 8-figure return from here. Actually, I expect this to happen on time. However, the journey probably won’t be fast. Presumably, we’re looking into the future here more than a decade or so. Even then, it’s possible that some hitherto unknown threats are pushing the Ripple alternative out of the race. As the scandalous 2022 season has shown, we never know what obstacles the unpredictable crypto market will throw at us. And innovation never stops. Another crypto network might find a payment processing system that would put both Ripple and Stellar Lumen to shame.
As with any investment, patience is your best co-pilot. It must also be paired with a healthy respect for the risks involved. XLM is also likely to exceed the $1 price point in the future, especially if it is adopted as an efficient payment system by developing countries. Don’t hold your breath just waiting for this distant mirage to happen. Wealth-creating investments need to be allowed to have their sweet time. Risky get-rich-quick schemes tend to collapse before they make real money anyway.
The opinions and estimates in the article are those of the experts and are not investment advice.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. Therefore, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.