Posted:
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.
As an enthusiast with a deep understanding of the blockchain and cryptocurrency space, I can confidently discuss the concepts and nuances mentioned in the provided article by Aaryamann Shrivastava, dated September 7, 2021.
The article primarily focuses on Stellar Lumens (XLM) and its position in the market compared to its competitor, Ripple (XRP), as well as other emerging technologies like Lightning Network (LN) and Ethereum 2.0 (ETH 2.0).
Let's break down the key concepts mentioned in the article:
-
Scalability and Performance:
- The article emphasizes the importance of scalability in the current blockchain landscape. Stellar Lumens is mentioned to have a capability of conducting over 250 transactions per second (TPS). Scalability is considered a crucial factor in determining the success of a blockchain network.
-
Use Cases and Vision:
- Stellar Lumens is noted for its focus on unbanked individuals and its expansion into hosting decentralized applications (Dapps) such as SatoshiPay. The mention of collaborations with companies like Wirex to develop a Visa card that supports multiple currencies suggests a practical application of the Stellar Lumens vision.
-
Comparison with Ripple (XRP):
- Ripple (XRP) is highlighted as a dominant player in the banking sector, having partnered with a significant portion of the world's largest banks. The potential to facilitate over 1500 TPS is stated as a competitive advantage over Stellar Lumens.
-
Competition with Lightning Network (LN) and Ethereum 2.0 (ETH 2.0):
- The article brings attention to the competition Stellar Lumens faces from technologies like Lightning Network (LN) and Ethereum 2.0 (ETH 2.0). Ethereum is acknowledged as a leader in the decentralized applications (dApps) sector, and LN is mentioned for its impressive 25 million TPS capability.
-
Stellar Lumens' Unique Position:
- Despite facing competition, the article suggests that Stellar Lumens remains a valid choice. Ripple's primary focus as a financial instrument, coupled with the ongoing development of LN and ETH 2.0, creates a space for Stellar Lumens. The network's daily transaction count of over 6.5 million is presented as evidence of its continued user preference.
-
Market Value and Network Value:
- The article provides comparisons of Stellar Lumens' network value with Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP). Despite challenges, Stellar Lumens is portrayed as having a significant competitive network value, contributing to its market strength.
In conclusion, the provided information and analysis suggest that Stellar Lumens, though facing challenges and competition, has a unique position in the blockchain and cryptocurrency space, with its focus on scalability, real-world applications, and competitive network value.
