Stellar (XLM) vs Ripple (XRP): Quick Comparison

Stellar (XLM) vs Ripple (XRP): Quick Comparison


A common dilemma in the crypto world, particularly for newbies acquiring crypto assets, is the decision to go for the Stellar (XLM) vs Ripple (XRP). Many experts have gone to great lengths to analyze both crypto coins to proffering the ideal choice. Find below our quick review of both coins to guide your understanding and possible decision making.

What is Ripple XRP?

Ripple is a currency exchange and remittance network based on RTGS systems. It was created in 2012 by programmers Chris Larsen and Jed McCaleb for Ripple Labs Inc., and it operates on its own public ledger known as XRP ledger. The ecosystem has its own cryptocurrency known as XRP.

Therein is the big difference between Ripple and XRP and these two entities must not be mixed together. Ripple is the ecosystem or the platform that allows the payment and receipt of funds in real time. It is just like the real world SWIFT which is currently the global leader for international transfers. It is also similar to the older Ethereum platform. Ripple was developed as a channel for banks to transfer money internationally instantly at negligible cost. While XRP is the local cryptocurrency of the Ripple platform and it has the 3rd largest market capitalization behind BTC and ETH. Ultimately, there will be 100 billion XRP coins issued on the platform with the Ripple team holding about 60% of total supply.

What Is Stellar Lumens XLM?

Stellar (XLM) vs Ripple (XRP): Quick Comparison

Stellar Lumens was launched about two years after Ripple in 2014 incidentally by Jed McCaleb, a co-founder of Ripple who left Ripple in disagreement with the direction it was going. The new platform has so many similarities with Ripple such that some analysts have suggested that Stellar Lumens is a fork of the Ripple platform. As there are Ripple and XRP, so also there are Stellar and Lumens. While Stellar is the technology permitting transfer and receipt of funds speedily and cheaply, Lumen is the cryptocurrency for the platform. Like Ripple, Stellar also utilize a distributed ledger protocol in processing transactions, and it deploys noticeably similar codes to Ripple.

The Rivalry between Stellar (XLM) vs Ripple (XRP)

The competition between XLM and XRP actually kicked off right from the birth of Stellar XLM. The root cause is traceable to the Co-Founder, Jed McCaleb’s decision to register the non-profit Stellar Development Foundation after forming the parent company Ripple in 2013. He subsequently stepped aside from his position with Stellar to focus on his unquenching desire to bring banking to The unbanked.

Another very crucial occurrence in the history of competition between lumens XLM and Ripple XRP was when the top crypto-exchange, Coinbase, announced that it is selecting the following five digital assets for experimenting; Cardano ADA, Basic Attention Token BAT, Stellar Lumens XLM, ZcashZEC, and 0x ZRX.

Similarities between Ripple & Stellar

Besides, sharing a Co-Founder, there is an apparent reason for competition between both cryptocurrencies. They provide basically the same service. It is this simple;

  • Mr. A, situated in Europe wants to transfer a sum to Mr. B somewhere in Asia for whatever reason.
  • By the current methods, Mr. A’s only option is the SWIFT network which is not exactly fast nor is it cheap. The alternative is to use Ripple XRP or Stellar Lumens to consummate the payment.
  • This is done by transferring Euros through the Ripple or Stellar platform which immediately converts the transfer sum to cryptocurrency and then instantly converts to the required Asian currency.
  • In a brief few seconds, the transaction is completed with virtually no fees!

Some other notable similarities between both cryptocurrencies asides the above include:

  •     No mining is allowed as both are private nodes.
  •     They both provide near instant and free transactions.
  •     They both use distributed ledger technology (DLT).
  •     They are both excellent for international transfers.
  •     Developers control circulating supply.

Differences Between Ripple & Stellar

Stellar (XLM) vs Ripple (XRP): Quick Comparison


  •     The aim of Project: To provide financial institutions with technology to solve the issues of slow and costly cross-border payments.
  •     Consensus model: Proof of Correctness.
  •     Supply: Deflationary (Transaction fees burned).
  •     Control: Considered to be more centralized.
  •     Key Partner: UBS, Santander, Bank of America, Merrill Lynch, etc.


  •     The aim of Project: Help the unbanked in poorer regions.
  •     Consensus model: Stellar Consensus Protocol.
  •     Supply: Inflationary (1% per year).
  •     Control: Considered to be less centralized.
  •     Key Partner: IBM.

General Stats Overview – Ripple (XRP) vs Stellar (XLM)

Last Updated: November 14th, 2018Ripple (XRP)Stellar Lumens (XLM)
Market Cap $18 billion $5.9 billion
Average Trading Volume (24h)794 million86 million
Total Coins100 billion103 billion
Target Market Financial InstitutionsCompanies & Individuals
Transaction clearance2-4 seconds2-4 seconds
Major PartnerBank of America, Merrill LynchIBM
InflationStatic/deflationary1% inflation each year

Conclusion: Stellar (XLM) vs Ripple (XRP)

Ripple and Stellar both share a common goal which is to provide users with a cheap and speedy means of transferring funds across borders and to eradicate the issues related to transactions with multiple currencies. Ripple has a head start in the industry, and its business model is to spread its technology to the banks. On the other hand, Stellar’s target is unbanked. Both platforms are quite popular and have impressive market value as well as relatively similar prices.

Consequently, Ripple and Stellar are similar and different enough to coexist in the crypto and financial world. This is why the crypto community is expected to continue to support both currencies for the foreseeable future.