The two most evolving and long-standing crypto assets, XRP and XLM, are gaining traction with an aim to enhance the speed and efficiency of global transactions. They are gaining momentum due to their aim to improve cross-border transactions using blockchain technology.
Both these crypto assets share a strong focus on speed and scalability while following a similar approach in offering global digital payments without depending on a traditional banking system.
As the crypto market is currently moving through a heightened timeline, XRP and XLM are both catching attention from market players, and investors are looking into their history, current market position, and potential correlation. Let’s explore it all in detail and find out where it stands in 2025.
Foundation of XRP and XLM
XRP is the native currency of XRP Ledger, a blockchain network developed and managed by Ripple Labs. It was founded by Chris Larsen and Jed McCaleb in 2012, following the tremendous success of Bitcoin. Designed and launched to provide fast and low-cost international money transfer, XRP uses a unique consensus algorithm that enables quick transactions across borders.
In 2013, Jed McCaleb left Ripple Labs and co-founded Stellar with Joyce Kim. XLM is the native currency of Stellar, and it provides low-cost cross-border transactions while aiming to connect financial institutions to unbanked and underbanked populations.
Key Similarities Between XRP and XLM
Here are some key similarities between XRP and XLM that can be identified while looking into their core features:
Common Founder
Both XRP and XLM were co-founded by Jed McCaleb in 2012 and 2014, respectively. McCaleb left Ripple in 2013 due to his disagreements with Ripple’s Board of Directors and founded Stellar in 2014. Hence, due to common ancestry, both ecosystems share a similar design philosophy.
Purpose-Driven Financial Solutions
Both XRP and XLM are created to enhance global digital payments by using blockchain technology. While XRP is improving the interbank payment system, XLM is focusing on access to financial services for unbanked populations. They both are revolutionizing the financial landscape by providing alternative solutions to the traditional banking system.
Cost-Effectiveness
XRP and XLM are emerging as alternatives to traditional payment transfer systems due to their lower transaction fees compared to other payment methods. These pocket-friendly transaction fees make them ideal for international money transfers.
Speed and Efficiency
As the whole point of a blockchain-based payment system is to offer quick settlements, XRP and XLM both have the infrastructure to process transactions at very high speed, mostly within seconds. This rapid processing of transactions makes it more efficient for users.
Unique Consensus Mechanism
Both XRP and XLM avoid the use of traditional consensus mechanisms like Proof-of-Work (PoW) or Proof-of-Stake (PoS) and use unique consensus mechanisms. XRP uses Ripple Protocol Consensus Algorithm (RPCA), while XRP has Stellar Consensus Protocol; both are developed and customized to meet the respective blockchain network’s demand.
Price and Market Comparison
| Data | XRP | XLM |
|---|---|---|
| Current Price | $2.58 | $0.3136 |
| Market Cap | $151.38 Billion | $9.38 Billion |
| Total/Circulating supply | 100B/58.55 Billion | 50B/31.06 Billion |
| Rank by Market Cap | 3rd | 14th |
Both XRP and XLM have seen a massive surge in their price over the past year.
According to CoinMarketCap, XRP price surged by around 415% in the past year. It has seen an upward trend since November 2024, after Donald Trump was elected as US President, and it was further largely fueled by regulatory clarity. Analysts predict that XRP price could surge to $5 or up to $10 within a year.
As per the data from CoinMarketCap, XLM has seen a growth of nearly 205% over the past year. Similar to XRP, the price of XLM also started accelerating in November 2024, leading to a renewed rally.
Market analysts and experts believe that the XLM price is expected to reach $0.80 in the upcoming months due to its increased real-world activities. Furthermore, Stellar’s recently launched initiative of achieving $3 billion in real-world asset (RWA) tokenization could increase their reach in different parts of the world.
Also Read: Can XLM Break $1 in 2025 Bull Run? Price Prediction for Stellar
Price Correlation
If we look at the price charts, there is a similar price trend between XRP and XLM, suggesting that both often follow a similar trend. This similar price action also coincides because of similarities in their services.
This price and market comparison suggests that while both XRP and XLM share similarities in price trends, XRP’s position as a go-to for institutional settlement sets it apart from XLM, whose focus is more on inclusion and tokenizing real-world assets.
As a result, XRP price is more reactive to regulatory news and institutional investor movements, whereas XLM’s growth depends on partnerships and adoptions.
Which Could Stand Out in 2025?
In 2025, both assets have the potential to reach new heights in the crypto space. XRP’s growing institutional adoption, the proposal for an XRP ETF, regulatory clarity from the SEC, and increasing partnerships with financial institutions may lead it to upward price movement.
On the other hand, XLM is becoming popular due to its focus on financial inclusion and the tokenization of real-world assets. Its mission to serve the underbanked population and its collaboration with NGOs and fintech firms may create new demand for XLM that will contribute to its long-term growth.
Final Thoughts
In the rapidly growing blockchain adoption, XRP and XLM both will play an important role in the future of the digital financial ecosystem. Their unique features, like scalability, cost-effectiveness, and fast transactions, will help them solve problems in the global finance and digital payment ecosystem.
While XRP is continuing to pave the way for high-speed institutional transactions, XLM is targeting to help users with real-world blockchain utility. Their growth is still unfolding with exciting opportunities ahead in 2025 and beyond.
