Choosing between XRP and Stellar (XLM) as potential investments for 2025 is not an easy task.
Both tokens have carved out niches in cross-border payments, but their recent performance and unique characteristics could influence where they may end up in the next year.
Finbold dug deeper into each token, using ChatGPT-4o’s information on which one could be the best buy in 2025.
XRP Performance and Outlook
XRP is currently trading at $0.5113. It has been a turbulent year.
In 2024, the token is down -18.01% year-to-date, with a -3.35% decline over the past month and a significant -19.40% decline over the past year.
This decline made XRP the laggard among the 100 largest crypto assets, trailing 86% of them. Additionally, trading below the 200-day simple moving average (SMA) signals bearish momentum. However, with 16 green days in the last 30-day period, representing 53%, there is evidence of some stability in price volatility.
Despite the setbacks, XRP’s prospects look promising. Recent applications for spot XRP exchange-traded funds (ETFs) from Bitwise and 21Shares indicate growing institutional interest, with Ripple’s CEO optimistic that ETF approval is “imminent.”
If this happens, it could spark wider adoption and renewed investor enthusiasm. That said, XRP’s trajectory remains dependent on the resolution of the SEC litigation, and regulatory clarity is likely to play a major role in its growth potential in 2025.
Outstanding (XLM) Performance and Outlook
XLM, currently priced at $0.09216, has a similar history of ups and downs. Over the past year there has been a decline of -27.59%, which lags major assets such as Bitcoin and Ethereum, as well as 90% of the top 100 cryptocurrencies.
Like XRP, XLM is trading below its 200-day SMA, highlighting the struggle to maintain upward momentum. Additionally, with the price now about -90% below its all-time high, XLM faces serious challenges in retracing previous peaks.
Unlike XRP, Stellar’s value proposition is focused on financial inclusion and partnerships aimed at increasing secure and affordable cross-border payments in emerging markets.
While XLM hasn’t seen similar ETF speculation, its steady growth and established use cases provide a more predictable, albeit modest, growth path. This stability may appeal to investors who prefer consistent progress to speculative gains.
XRP vs XLM: Which is better to buy in 2025?
Both XRP and XLM are serious competitors in the cross-border payments market. However, XRP’s popularity among institutional investors could give it an edge if regulatory clarity is achieved. ChatGPT noted:
“XRP represents a high-risk, high-reward scenario. If the ETF receives approval, XRP could experience significant price increases, attracting a new wave of investors. However, the pending SEC case remains a significant regulatory risk, and any adverse outcome could limit XRP’s upside potential.”
On the other hand, AI noted:
“XLM offers a low-risk, moderate-reward profile. Its emphasis on partnership and financial inclusion brings credibility and a sustainable path to growth, although it lacks the speculative excitement of an ETF.”
For investors with a higher risk tolerance and confidence in XRP’s regulatory prospects, the potential for ETFs and institutional adoption makes XRP an attractive, albeit speculative, option.
For those who prefer a more stable investment with the potential for sustainable growth, XLM may be a smarter choice, providing incremental progress without the volatility associated with high-stakes regulatory battles.
