XRP Outpaces Stellar with Deeper Liquidity, Better Compliance Features, and Growing Ecosystem

XRP appears to be a better investment than Stellar due to its size, features, and positioning in the market. XRP has a larger market capitalization and daily trading volume compared to Stellar. Additionally, XRP's compliance tool kit is more comprehensive, with built-in features such as trust-line authorization and account freezes. This gives XRP an edge in attracting institutional capital and partnering with heavyweight custodians.

As the cryptocurrency market matures, investors are increasingly focusing on the nuances that differentiate various assets. Among the contenders, XRP (XRP -1.08%) and Stellar (XLM -1.09%) stand out, both offering blockchain technology solutions for cross-border payments. However, when it comes to capital, compliance, and catalysts, XRP appears to hold a significant edge over Stellar.

Deeper Liquidity

Financial institutions require substantial liquidity to move large sums of money efficiently. In this regard, XRP's market capitalization and trading volume give it a substantial advantage. With a circulating market cap of approximately $194 billion and daily trading volume of around $12 billion, XRP provides ample liquidity for large transactions. In contrast, Stellar's market cap is around $14 billion, with daily trading volume of about $1 billion [1].

This deeper liquidity enables XRP to:
1. Facilitate large trades without significant price movements.
2. Signal availability of counterparties to institutions.
3. Support more sophisticated financial products, such as derivatives and structured notes, due to effective hedging opportunities.

Superior Compliance Tool Kit

Payment networks must maintain regulatory compliance to thrive. The XRP ledger (XRPL) offers built-in features like trust-line authorization and account freezes, which help financial institutions meet their know-your-customer (KYC) and anti-money laundering (AML) obligations without needing external workarounds [1]. Stellar, while capable of enforcing similar rules, relies more heavily on external providers for compliance, which can be less appealing to large custodians.

Ripple's partnerships further enhance XRP's compliance advantage. For instance, Ripple's 2025 deal with HSBC Holdings to launch tokenized securities custody positions the bank's compliance staff within XRPL's framework. Additionally, Circle Internet Group's decision to launch its stablecoin on XRPL boosts on-chain liquidity for regulated dollar transfers [1]. Stellar's partnerships, while notable, do not match the scale or liquidity potential of XRP's [1].

Clearer Upcoming Catalysts

XRP also enjoys a pipeline of upcoming catalysts that Stellar lacks. Analysts assign a 95% probability of a spot XRP exchange-traded fund (ETF) winning approval from U.S. regulators by the end of 2025. This potential ETF listing could attract significant institutional investment, as it would allow asset issuers to back funds with real coins and advisors to funnel retirement dollars into XRP easily [1].

Moreover, XRPL's value of tokenized real-world assets (RWAs) has surged, reaching $179 million and marking a 52% increase in the last 30 days. This growth is driven by institutional pilot programs, such as on-chain U.S. Treasury bills and tokenized bonds. While Stellar's RWA footprint is larger, it has not seen similar momentum in recent weeks [1].

Conclusion

In summary, XRP's larger market capitalization, deeper liquidity, superior compliance tool kit, and clearer upcoming catalysts position it as a more attractive investment compared to Stellar. These factors collectively make XRP a more compelling choice for investors seeking robust, institutional-grade cryptocurrency investments.

References
[1] https://www.fool.com/investing/2025/08/14/3-benefits-of-buying-xrp-over-competing-crypto/