Searching for similarities and differences between Hedera and Stellar

It can be confusing when you have so many cryptocurrencies available for trading. Projects might have similarities while also having considerable differences.

If we analyze carefully, that’s the case with the XBAR vs XLM comparison. Our guide will cover these two platforms to establish their critical features and reasons that make them worthwhile.

The article covers the specifics of the two projects and also analyzes XBAR and XLM prizes, trying to conclude which asset could be a better investment opportunity. Let’s see what you should know about the projects!

Hedera overview

Hedera is an ambitious project with the goal of creating a decentralized environment for launching dApps. Its crucial feature is the unique hashgraph, a proof-of-stake consensus based on the asynchronous Byzantine fault tolerance model. It’s a technologically advanced solution that offers an incredibly secure environment.

Solidity programming language can be used to develop decentralized apps as Hedera uses the Besu EVM. Users can mint, adjust, and manage coins via token services, including standard and NFT coins. 

Analyzing HBAR

Apart from being used to power Hedera, HBAR has a protective role on the network. The lowest coin’s value was in 2020 when it was worth only $0.01. XBAR reached its peak value over a year later, with the value being $0.57 in September 2021.

Unfortunately, a bad year for crypto followed, so HBAR lost the majority of this value. Today, the worth is around $0.06. With a market cap of approximately $2 billion, that’s enough to put HBAR among the top 40 coins in the crypto rankings. HBAR has 28 billion tokens in circulating supply, with the maximum set at 50 billion.

Stellar overview

Stellar’s history goes back to 2014, with the official launch following a year later. The platform is a network for decentralized payments focused on speed and affordability. The idea is to connect individuals, payment providers, banks and other financial institutions and facilitate multiple crypto transfers.

The platform uses a unique consensus protocol called Stellar. Each account’s funds and desired operations are stored on the ledger. Every five seconds, this information is broadcast to the network. Nodes validate transactions, and that allows finalizing transactions in seconds.

Analyzing XLM

XLM is the token that powers the Stellar network. Its current worth is $0.08, and the coin seemed to have had a good year up to this point. The all-time low was a long time ago, in 2014, when the token was worth $0.001. The biggest hype around Stellar was in 2018, which is when it reached an all-time peak at $0.93.

The coin has a circulating supply of around 26.4 billion tokens, with the maximum set at just above 50 billion. XLM has a market cap set at $2 billion, and it’s positioned in the top 30 of the overall crypto rankings.

The similarities and differences

Let’s start with the similarities between the two projects:

  • Available at major crypto exchanges. Both currencies are available for trading, and a large number of reputable exchanges include them in many trading pairs.
  • Projects with years of history. Stellar’s history goes back to 2014, while Hedera is three years younger, but that’s still enough to have a decent tradition in the crypto world.
  • Both belong to the top 40 tokens in the crypto rankings. Hedera and Stellar are positioned well in the rankings.

Now, let’s check the differences:

  • Stellar is a blockchain, while Hedera is a ledger
  • They use different consensus protocols. Stellar uses an original protocol designed for this platform. Hedera uses a proof-of-stake hashgraph based on aBFT.
  • Hedera allows dApp creation. That’s not an option with Stellar since there’s no runtime platform for code execution.

Why people choose to exchange XMR to BTC

XLM and HBAR have similar current values. The lumen is worth around $0.08, while the Hedera’s native token is set at around $0.06. HBAR could rise to $0.12 by the end of the year, and exceed $0.3 in the next few years. If we look at the next decade, it could be worth anywhere from $3.2 to $3.7 in 2032.

Lumen’s price by the end of 2023 could be up to $0.15, and it could reach $0.4 in a few years. By 2032, the value could be anywhere from $3.85 to $4.69. Although these forecasts are similar, Hedera seems to be generating more hype, making it a better investment opportunity.

It’s not in the same range as Bitcoin, which has always been attractive, and that’s why many people choose to exchange XMR to BTC or similar coins. But despite that, investing in Hedera could be a smart trading move worth considering.