XRP experiences have increased competition from Stellar
The cryptocurrency market has always been very competitive. There are thousands of different projects that have appeared on the market, and some of them are very similar. XRP is working very hard to keep its domain as the third most valuable virtual currency. However, there is a well prepared and interesting competitor that is approaching. We are talking about Stellar (XLM), which is currently the sixth most important cryptography.
Both Ripple and Stellar want to create an economic network that is widely used to transfer money around the world. At the moment, SWIFT is still the most important network used by banks and financial institutions around the world to make money transactions. However, it is very inefficient since it is slow and expensive.
Ripple and XRP virtual currency are investing very hard in some markets like India. The remittance industry is also important in the Asian country and Ripple is doing its utmost to control this market. The XRP cryptocurrency is able to provide access to safe and secure transfers for those individuals who have not been provisioned and who need to send or receive money.
However, as XRP grows, Stellar is also trying to play an important role in this landscape. Some time ago, Stellar was able to sign a partnership with IBM in order to create a payment system based on DLT.
Stellar and XRP are currently providing important services in different parts of the world. Cheap and almost instant transfers are helping different parties to take advantage of them. But there are several countries that are not used to this type of transaction mechanisms. That's why, the efforts that Ripple and Stellar are doing are very important.
In recent months, there were some rumors about a possible Stellar listing on the Coinbase platform. Coinbase is one of the most important cryptocurrant exchanges in the world. Stellar works very similar to XRP.
In the past, there were several discussions about why XRP is not listed in Coinbase. The Los Angeles-based company did not provide any specific information about it. However, it is possible to know that the US Securities and Exchange Commission has not clarified its position on whether or not XRP is considered a security security.
There are also some complaints about whether XRP is centralized. Ripple is trying to distance itself from the XRP cryptocurrency.
Since the beginning of the bear market at the beginning of the current year, XRP has lost more than 90% of its value. It will be important for XRP and Stellar to have good strategies. Ripple should distance itself correctly from XRP and Stellar should move forward with IBM by creating a functional product.