Ripple’s XRP and Stellar Lumens (XLM) have a similar origin and value proposition, despite trading at significantly different market caps. Now that 2025 started and the two cryptocurrencies battle for market share, Finbold turned to an artificial intelligence (AI) to find whether XRP or XLM is a better buy for this year.
Before exploring the differences between XRP and XLM, we had already covered the dilemma regarding Bitcoin (BTC) and Ethereum (ETH) as a better buy for 2025.
Ripple (XRP) and Stellar Lumens (XLM) price analysis in 2025
As of this writing, XRP is trading at $3.29 and XLM at $0.46. They are up 54.24% and 34.71% year-to-date, respectively, highlighting the similarities of both cryptocurrencies. Yet, at these prices, XRP has a $188 billion and XLM a $14 billion capitalization, highlighting their differences.
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Another similarity is that the core-developing company of XRP and Stellar Lumens are based in the United States. This has led to both coins benefiting massively from Donald Trump’s election in November.
In the last six months, XRP and XLM surged by 424% and 348%, with all the action happening since November. Expectations are also high following Trump’s Inauguration Day, today on January 20, 2025.
Grok AI picks between XRP or XLM as the best buy for 2025
In this context, Finbold consulted with Grok 2, an artificial intelligence model developed by xAI that challenges the legacy web. Elon Musk’s AI considered all the information we shared above, plus real-time analysis on the web, including the X platform.
First, Grok’s AI started by analyzing the market cap and year-to-date performance of XRP and XLM, noting XRP’s dominance. The higher market cap and surge suggest stronger “market confidence” and a more “established presence in the financial sector.”
Regarding their use cases and adoption, the differences are clear once Ripple is focused on banks and institutions, providing B2B solutions, while Stellar Lumens is designed to provide higher financial inclusion for individuals and small businesses.
Elon Musk’s designed artificial intelligence continues its evaluation on whether XRP or XLM makes a better buy for 2025. Notably, it navigates “Regulatory and Political Climate,” stating that both cryptocurrencies could benefit from Donald Trump’s crypto-friendly administration.
Nevertheless, Grok believes XRP “might seen as higher risk due to its legal challenges” against the SEC. Moreover, the AI also touches technical and fundamental analyses, suggesting stronger momentum for XRP. In Grok’s opinion, both coins offer good growth potential, according to each of their value propositions.
In summary, the dispute between XRP or XLM as a better buy for this year ends up having the first as a winner. Still, XLM has its own appeal and capacity to attract a more specific investor profile for 2025.
It is important to understand, however, that both XRP and XLM suffer from high token inflation. Furthermore, they both have Jared McCaleb as an important contributor. McCaleb was also one of the main executives of the defunct Bitcoin exchange Mt. Gox that caused one of BTC’s most damaging black swan events.
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