The end of the SEC case could bring change
Key Points:
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XLM and XRP aim at the multi-trillion-dollar cross-border payments market.
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XRP has underperformed XLM due to legal issues with the SEC.
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A favorable outcome in the Ripple/SEC case could send XRP higher in 2022.
Ripple (XRP)
The XRP Ledger is a public blockchain that provides developers with an open-source foundation for building demanding projects. This low-latency, fast, and reliable ledger includes developer-friendly features that reduce coding time, making it more efficient than many alternatives available today. The blockchain is also environmentally considerate.
Stellar (XLM)
Stellar is a network for currencies and payments that enables users to create, send, and trade digital representations of any form of money. It is designed to allow the global financial system to interoperate in a single framework—offering faster transaction speeds than many traditional blockchain-based networks and lower time and energy costs.
Which is better to buy?
Both Stellar and XRP are reasonably attractive buys at current prices. Their fundamentals remain solid, and each targets one of the largest markets in finance: the multi-trillion-dollar cross-border payments sector.
Over the past year, XLM has outperformed XRP, largely for good reason. Since 2020, XRP has been weighed down by a legal battle with the U.S. Securities and Exchange Commission (SEC). That litigation has constrained XRP’s performance while XLM generally moved with the broader crypto market.
That said, much could change in 2022. Many analysts expected the case not to extend far beyond 2022, and there has been speculation that Ripple might prevail.
If Ripple achieves a favorable outcome, the implications for XRP could be significant. A positive resolution could act as a catalyst, potentially triggering a strong rally and helping XRP reclaim the position it once held among the top cryptocurrencies.
At the same time, Stellar offers substantial advantages, particularly as its ecosystem continues to grow. For investors seeking exposure to the cross-border payments opportunity, holding both assets in a diversified crypto portfolio can be a sensible approach.