Stellar Lumens started with a promise that has been forgotten. Founded by Jed McCaleb, the man who also founded Ripple Labs, Stellar Lumens couldn’t become as strong a contender as Ripple.
Why is Stellar Lumens lagging behind?
In this day and age, scalability is an important factor that drives not only the network but also the performance of the coin. The narrative “best technology = best profits” is now superfluous. The market has seen many seemingly robust blockchain projects and their tokens that have been forgotten and sidelined. Stellar Lumens is one of them. At press time, the price was $ 0.41.
The network can handle over 250 transactions per second (TPS) and focuses on people without bank details. It has also expanded to hosting dapps like SatoshiPay and with companies like Wirex who have developed their own Visa card to spend up to 12 currencies anywhere, the Stellar Lumens vision seems to be coming true.
However, XRP has become the dominant player in the banking sector, having worked with a third of the world’s largest banks. Since it has the potential to deliver over 1500 TPS, it’s a better option when compared to Stellar.
Stellar has a future
It’s important to keep in mind that Stellar has to compete with Lightning Network (LN) and ETH 2.0, which are set to become a reality soon. Ethereum is already a leading force in the dApps sector and LN, with 25 million TPS, is gaining the upper hand.
But here’s the twist – Ripple is primarily a financial instrument and LN and ETH 2.0 are still reaching their potential, which makes Stellar Lumens a valid choice. Additionally, people still choose the XLM network over others as it hosts over 6.5 million transactions every day.
It also has significant competitive network value when compared to BTC, ETH, and XRP, which also gives it better market value.
Looking at the above data, despite competition and other challenges, Stellar Lumens is here to stay.
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