XRP vs XLM, Which One Is a Better Investment?

7 min read

One made by the cofounder of the other, the XRP and XLM, seem similar, but they have key differences and features that set them apart. But the question remains: which one is a better investment? This article will explore the key differences between XLM and XRP and analyze their growth potential, helping you decide which cryptocurrency to invest in.

XRP vs XLM, Which One Is a Better Investment?

What Is Ripple (XRP)?

Although the main idea behind blockchain was to eliminate the need for intermediaries, Ripple came to the crypto market with another purpose. In fact, Ripple’s idea was different from other cryptocurrencies because it was supposed to act like an intermediary. Ripple was launched in 2012 to compete with SWIFT in a decentralized world, which was one of the main differences between XRP and Bitcoin.

Now, trading cryptocurrencies to Euro and other currencies is possible with Ripple in a fast, secure, low-cost transaction between banks and financial institutions.

The native token on the Ripple blockchain is called XRP, which is mainly used as the transaction fees between two parties. Actually, two parties who want to transfer money can convert fiat currency into XRP to transfer it quicker and cheaper. Check out the article about how XRP works to learn more about this cryptocurrency.

XRP is popular because it can do all international transactions in only a few minutes. On the other hand, it will take up to 4 working days for SWIFT to do the same transaction. Therefore, XRP is much faster than SWIFT.

Additionally, unlike most cryptocurrencies that are produced during the mining process, XRP is a pre-mined token. It means the maximum supply of this token has been produced at its launch, and almost half of them are in circulation.  

Whether you want to buy XRP with PayPal or choose other methods, such as buying XRP with Credit Card, it’s easy to buy XRP on BlockTrade. Furthermore, you can use ApplePay to buy XRP, or if you have an Android phone, it’s possible to use GooglePay to purchase XRP, too.

What Is Stellar (XLM)?

Jed McCaleb was one of the co-founders of Ripple that decided to design a decentralized platform to simplify international payment and enable the creation of custom financial products. Therefore, the Stellar Lumen blockchain was created in 2014. Like other cryptocurrencies, Stellar was supposed to be a decentralized payment network to provide a high-speed and cost-effective transaction.

However, unlike other digital currencies, Stellar isn’t intended to replace the current financial system, but its effort is to enhance this system and create a single network where digital currencies and fiat currencies can work together. Accordingly, by employing the Stellar network, users can convert digital currencies to cash and vice versa.

The native token on this platform is called XLM, sometimes known as Lumen. It is used as an investment, paying transaction fees, and creating or collecting NFT and smart contracts.

XLM tokens have a maximum supply of 100 billion tokens. However, they are not produced during a mining or staking process. The company releases a high amount of this token to the market and increases the supply by 1% each year.

If you wonder how to buy XLM, you have different chances on BlockTrade. The most common method is to buy XLM with credit cards, which is an easy way to purchase anything. Other methods include buying XLM with PayPal and debit cards. Additionally, it is also possible to buy XLM with GooglePay for Android users and buy XLM with ApplePay for iOS users. All these payment methods are available on BlockTrade with zero transaction fees.

XLM and XRP Similarities

Although XRP and XLM come from the same origin, they have only a few similarities:

  • Their creator is the same.
  • They both have native tokens used as a bridge between digital and fiat currencies.
  • XRP and XLM have the same purpose; they are designed to facilitate low-cost, secure, and fast transactions.

XRP and XLM Differences

As mentioned, the differences between XRP and XLM are more than their similarities:

XRP is not completely decentralized, a majority of its tokens are controlled by the Ripple company.A majority of XLM tokens are held by nonprofit Stellar Development Foundation.
Ripple is a closed system.Stellar is open-source. 
The customers of Ripple are mostly banking institutions.The Steller’s customers are mostly individuals and small businesses.
XRP tokens have been pre-mined. XLM tokens are released to the market annually with 1% of its maximum supply. 
Maximum supply of XRP is 100 billion tokens.Maximum supply of XLM is 50 billion tokens. 

Which One Is a Better Investment? XRP Vs. XLM? 

As can be seen, XRP and XLM have the same origin but different users. Now you may wonder which one could be a better investment for you. Before checking different factors that can help you decide which one to buy, we should note that due to the volatility of the crypto market, the future of cryptocurrencies is unclear.

It means the crypto price changes based on the situation. So, the cryptocurrency you choose may win or lose. However, if nothing changes in the future, the following factors can help you make a better decision.

  • Technical Analysis: One thing you should check before buying cryptocurrency is its history. Whatever happened to the past of a digital asset can tell a lot about that cryptocurrency. By checking the crypto’s past prices, you can discover how volatile it was and what factors impacted its price.
  • Fundamental Analysis: The current situation of the crypto market can tell you how well a cryptocurrency is performing. You should read the news, comments, and all other information about the cryptocurrency you want to buy. Even if you are unsure which crypto to buy, especially the digital assets from the same origin, like Bitcoin Vs. Bitcoin Cash, this information can help you discover which one has a better current condition.
  • Price Predictions: Although no one can tell what will happen to the future of a cryptocurrency, price predictions are still helpful. Top crypto analysts make these predictions by checking out different aspects of a cryptocurrency. At least, the price predictions can tell you what may happen to crypto if everything stays the same as today.

XRP Vs. XLM: Price History 

As mentioned, the crypto price history is important. The most important part is that you can have an overview of what may affect the price of a cryptocurrency. 

XRP Price History 

In June 2014, XRP tokens were introduced to the market at $0.005 per coin. Unlike other cryptocurrencies, Ripple’s primary objective differed, and as a result, its token did not experience significant fluctuations until 2017. That year, XRP attained its highest value of $3.84, indicating its potential as a profitable long-term investment. However, its price subsequently plummeted to $1 in 2018 and remained within the $0.3 to $0.2 per coin the following year.

 In 2020, Ripple faced a lawsuit from the SEC, causing many investors to lose confidence in the token’s prospects. Consequently, XRP’s value declined that year. However, Ripple won the initial trial in 2021, resulting in a surge in the token’s value to $1.83.

 Ripple was under the shadow of the SEC for two years, with the second trial scheduled for 2022. This news had an adverse impact on XRP’s value, which fell to $0.50 per coin. However, on July 23rd, 2023, the court ruled that XRP was not a security and dismissed the SEC’s claim, marking a significant victory for Ripple. Following this announcement, XRP’s value rose to $0.79 on July 26th, 2023.

XLM Price History 

The initial value of XLM was $0.003 when it was released to the market. XLM didn’t have a significant price rise until 2017, when it rose to $0.05 and started 2018 at a rate of $0.82. It seems that the heart of this cryptocurrency started beating after two years. XLM had many fluctuations this year until it finished at $0.11 per coin. Although it still seemed like a profit for people who had bought this token in the previous year, it wasn’t what investors had expected while purchasing this token at the beginning of the year.

2019 wasn’t a great year for this token because it didn’t have huge ups and downs. The year passed for this token at an average price of $0.06 per coin. The same scenario happened in 2020. XLM still didn’t get any higher than $0.16.

But 2021 was different for XLM holders because, at the beginning of the year, its price reached $0.26. Then in only a few months, it mounted up to $0.76, the second highest price for this token after 2018. With all the ups and downs XLM had, it ended 2021 at the rate of $0.27 and started to fall in 2022. The average price for this token was around $0.1 to $0.07. However, the XLM price chart shows that it is going to rise in 2023 because it started the year at $0.073, and at the time of writing this article, the XLM price was $0.16 in July 2023. 

XRP Vs. XLM: Price Predictions

The first thing to consider is that predictions are just predictions! Although you should check these predictions, you should not decide only based on these numbers. Meanwhile, price predictions can give you an overview of a token’s condition in the future. Furthermore, it can help you decide between cryptocurrencies that are now in almost the same condition, such as Uniswap vs Sushiswap.

XRP Price Predictions

  • According to CoinCodex, the highest price for XRP might be around $1.5 in 2025. The experts of this website think its price might possibly reach $1.84 by 2030.
  • CryptoNewsZ analysts predict a rate of $1.5 for XRP in 2025, and they think its price might possibly rise as high as $5.5 by 2030.
  • Based on Techopedia predictions, an average price for XRP might be around $3 in 2025, and they also predict a rate of $6 for this token by 2030. 

Read the complete XRP price predictions from 2023 to 2030.

XLM Price Predictions 

  • Based on the AMBCrypto predictions, XLM price might possibly be around $0.11 in 2025 and it might reach $0.25 by 2030. 
  • The CryptoNewsZ analysts also predict that the maximum price of XLM reaches $0.31 in 2025 and it might possibly rise to $1.062 by 2030. 
  • The crypto analysts at Techopedia think XLM could possibly reach $0.4 in 2025 and it might rise to $1.4 by 2030. 


Bottom Line 

XLM and XRP are two of the most popular cryptocurrencies in the market, both offering unique advantages and features. While XLM is designed to facilitate fast and low-cost transactions, XRP is focused on providing a seamless cross-border payment solution. Both tokens have gained significant attention from investors. However, investing in either has some risks, like any other cryptocurrency. But the decision is up to you. Here are some tips that can help you have a better investment in the crypto world:

  • Always choose an exit point for your investment, and don’t put all your money on a cryptocurrency. Invest as much as you can tolerate to lose. 
  • Check out the cryptocurrency rules in your country and ensure you are investing in a crypto-friendly country if you are in Europe. 
  • Keep your tokens in a secure wallet. Find the best wallet for your crypto investment. 


Can XLM be mined?

Unlike other cryptocurrencies, the production of XLM tokens does not involve mining. Instead, XLM tokens are released annually through a built-in inflation mechanism that increases the supply by 1% each year.

Is XRP or XLM better?

Each cryptocurrency has its own features and risks; it all depends on the buyer. For example, are you going to use the tokens in other ways rather than investments? Do you want to keep your tokens for long-term investment? What is your budget, and how risk-averse are you? Based on these preferences, one crypto might seem better than the other. 

Which is faster, XRP or XLM?

XRP is generally considered faster than XLM regarding transaction speed and scalability because it can handle up to 1,500 transactions per second. In comparison, XLM can handle around 1,000 transactions per second. However, both cryptocurrencies are relatively fast compared to traditional payment systems.

Is XLM a fork of XRP?

Although XLM Lumen has been created by the same person who created XRP, it isn’t considered a fork of XRP. These platforms have different purposes and users; each is going its own way. Accordingly, their differences are more than their similarities.

Start investing today!


This is not financial advice. Mentioning coins and tokens is not a recommendation to buy, sell, or participate in the associated network. We would like to encourage you to do your own research and invest at your own risk.

Editorial team

We are a team of crypto enthusiasts. Each of us has extensive theoretical and practical experience in trading, cryptocurrencies, and blockchain. We also like to dig deep and explore. Our goal is to help you make the right and relevant decisions.

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