XRP vs XLM: Which is Better? Here’s the Complete Analysis
1. XRP’s Strengths and Challenges
XRP is known as an institutional favorite token. Ripple, the company behind XRP, has faced major challenges, including a legal battle with the SEC. However, XRP continues to grow, focusing on adoption through products like the $RLUSD stablecoin and a possible spot ETF launch in 2025.
Despite its potential for massive adoption, XRP faces centralization challenges as Ripple still holds a large portion of the XRP supply, which could lead to inflationary pressures and trust issues for some institutions. Privacy issues are also a concern for some investors.
2. XLM: Focus on Community and Decentralization
XLM, on the other hand, stands out with its stronger decentralized approach. After burning 50% of its total supply in 2019, XLM has reduced its token inflation and provides an attractive deflationary potential.
While XLM’s trading volume is still far less than XRP’s, the token is more focused on community use and smaller sectors. Despite its huge potential in terms of community-based adoption, XLM has yet to gain much attention from institutions, which are still the main force behind XRP.