Altcoin
Is Stellar Lumens here to stay or will it fade in the shadow of Bitcoin, Ethereum, XRP
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| Last updated: January 30th, 2024
Stellar Lumens began with a promise, however, it’s being forgotten. Founded by Jed McCaleb, the man who also found Ripple Labs, Stellar Lumens failed to become as strong a contender as Ripple.
Why is Stellar Lumens lagging?
In today’s time, scalability is an important factor that drives not only the network but also the performance of the coin. The “best tech = best gains” narrative is becoming redundant now. The market has seen many seemingly robust blockchain projects and their tokens, being forgotten and sidelined. Stellar Lumens is one of those. At press time, it was priced at $0.41.
Stellar Lumens made strong gains this week | Source: TradingView – AMBCrypto
The network has the capability of conducting over 250 transactions per second (TPS) and focuses on unbanked individuals. It has also expanded into hosting Dapps such as SatoshiPay and with companies such as Wirex, developing their own Visa card to spend up to 12 currencies anywhere, Stellar Lumens’ vision seems to be coming true.
However, XRP has emerged as the dominant player in the banking sector since it partnered with a third of the world’s biggest banks. Also, since it has the potential to facilitate over 1500 TPS, it makes for a better option in comparison to Stellar.
Does Stellar have a future
It is important to consider that Stellar has to compete with the likes of Lightning Network (LN), and ETH 2.0 which is soon to be a reality. Ethereum is already a leading force in the dApps sector and LN, boasts of 25 million TPS, gaining the upper hand.
But here’s the twist – Ripple being primarily a financial instrument, and LN and ETH 2.0 still achieving their potential, it makes Stellar Lumens a valid choice. Not only this, people still choose the XLM network over others, as it hosts over 6.5 million transactions every day.
Transactions count comparison | Source: Coinmetrics – AMBCrypto
It also has a significant competitive network value compared to BTC, ETH, and XRP which gives it better market value as well.
Network value comparison | Source: Coinmetrics – AMBCrypto
Looking at the above data, despite competition and other challenges, Stellar Lumens is here to stay.
