Sometimes we forget how competitive the cryptocurrency market is. Especially when many beings are growing in sight at the same time, this forgetting is happening more.
However, we remind you again and again how possible it is for even the biggest cryptocurrencies to be kicked out of the market and replaced by another. The market is so brutal that Victor Argonov, a senior analyst at international FinTech EXANTE, studied Ripple’s legal battle with the SEC and concluded that the decline of Ripple XRP could trigger the Stellar XLM journey.
Could Stellar XLM Replace Ripple XRP?
In terms of market value, Stellar XLM is the 14th most valuable cryptocurrency and according to Argonov’s analysis, its biggest competitor is the 4th most valuable digital currency XRP. Stellar XLM will need to surpass some of the top performing cryptocurrencies, including some of DeFi’s top coins, to get this point from XRP.
However, according to analisdollar’s reviews, if Ripple (XRP) is to be pulled out of the market as a result of the legal battles facing the Ripple team, XLM seems very clear.
The reason is simple; Ripple XRP and Stellar XLM share some similarities and functions that could easily make it an attractive alternative to XRP. More importantly, XLM is not relevant if it is a proprietary company such as XRP intertwined with Ripple Labs. This easily gives XLM a huge advantage over its competitor. Because investors no longer have to worry about future legal battles that may arise as a result of policy makers’ connection with a possible third party.
“The collapse of the Ripple system could increase investor interest in the decentralized Stellar project similar to the XLM token,” Argonov said in his analysis, explaining why he sees Stellar XLM more flexible for investors:
“This payment system copies Ripple’s functions but is not affiliated with a private company and is therefore perhaps better protected from prosecution. ”
XRP’s Fate Is in the Hands of SEC and Investors
While Ripple waits for the legal fight to move forward in August and hopes to make a fair decision following the arrival of a new SEC Chairman, it is objectively true that XRP is one of the riskiest assets on the market.
Despite gaining and accumulating a good percentage of earnings since the legal fight with the SEC began, investors are at risk of seeing an attack if the court decides against the XRP token trading company in the future.
Ripple may also be fined or even need to stop doing business in the United States of America. Any of these results can put a greater strain on XRP’s performance. Also, if investors collectively decide that Stellar XLM is a suitable replacement for XRP, Argonov’s claims may not be compelling at all.