XLM Price Prediction: Is Stellar Poised to Outperform XRP in the Remittance Revolution with Soroban and Visa?

The remittance market, a $800 billion global industry, has long been a battleground for blockchain innovators seeking to disrupt traditional cross-border payment systems. In 2025, two names dominate this space: Stellar (XLM) and Ripple (XRP). While both platforms share a common goal—fast, low-cost transactions—Stellar's recent technological upgrades and strategic partnerships, particularly with Visa, position it as a compelling contender to outperform XRP in the long term. This analysis evaluates Stellar's institutional and technological edge, focusing on its Soroban smart contract platform and ecosystem growth, while comparing its trajectory to Ripple's entrenched but evolving presence.

Stellar's Soroban: A Game-Changer for Remittance Scalability

Stellar's Soroban platform, launched in 2023 and refined through 2025, represents a paradigm shift in blockchain-based remittances. Built on Rust, Soroban is designed for developer efficiency and enterprise-grade scalability, with features like parallel execution, optimized fee models, and no serialization loopsStellar | Blockchain Network for Smart Contracts, DeFi, Payments^[1]. These innovations reduce the computational overhead typically associated with smart contracts, enabling complex financial applications such as tokenized assets and DeFi protocols to operate seamlessly on the Stellar networkStellar | Intro to Stellar | Blockchain for Real World Applications^[2].

By 2025, Soroban's capabilities have been further enhanced by Protocol 23 “Whisk”, which introduces parallel transaction processing, pushing the network's throughput to 5,000 transactions per second (TPS)Latest Stellar (XLM) Price Analysis^[3]. This scalability is critical for remittances, where high-volume, low-cost transactions are non-negotiable. For context, traditional remittance providers like Western Union charge 6-8% fees for cross-border transfers, while Stellar's average cost per transaction remains below $0.0001The Power of Stellar^[4].

The platform's focus on real-world asset (RWA) tokenization also sets it apart. With over $522 million in RWAs hosted on Stellar by mid-2025, the network is becoming a bridge between traditional finance and decentralized systems. This aligns with remittance use cases, where users often need to convert fiat to crypto and vice versa at physical locations—a process facilitated by Stellar's 500,000+ fiat-to-crypto on- and off-rampsStellar (XLM) Price Prediction For 2025 & Beyond^[5].

Institutional Partnerships: Visa and the Global Payments Ecosystem

Stellar's 2025 partnership with Visa marks a pivotal moment in its institutional adoption. The collaboration integrates Stellar's stablecoin network with Visa's global payment rails, enabling real-time cross-border settlements using digital assetsStellar | Blockchain Network for Smart Contracts, DeFi, Payments^[6]. This synergy addresses a key limitation of traditional remittance systems: the time lag between fiat conversion and final delivery. By leveraging Stellar's low-latency, energy-efficient consensus mechanism, Visa can now offer near-instant transfers at a fraction of the cost of SWIFT or ACHStellar | Intro to Stellar | Blockchain for Real World Applications^[7].

This partnership is not an isolated win. The Stellar Development Foundation (SDF) has also expanded its ecosystem through initiatives like the World Wire project (co-developed with IBM), which tokenizes fiat currencies for seamless international transfersStellar | About Stellar Development Foundation^[8]. These institutional alliances underscore Stellar's ability to attract legacy financial players seeking blockchain solutions without compromising regulatory compliance.

XRP's Legacy and Limitations

Ripple (XRP) has long dominated the remittance sector, with its xCurrent and xRapid solutions adopted by over 300 financial institutions. Ripple's strength lies in its pre-existing relationships with banks, particularly in emerging markets where speed and cost efficiency are paramountStellar (XLM) Price Prediction For 2025 & Beyond^[9]. However, XRP's reliance on centralized intermediaries and its ongoing legal battles with U.S. regulators have created uncertainty.

While Ripple's network processes 1,500-5,000 TPS (depending on load), Stellar's Soroban platform now matches or exceeds this throughput with decentralized smart contractsLatest Stellar (XLM) Price Analysis^[10]. Moreover, XRP's lack of a robust smart contract ecosystem (until recent upgrades) has limited its ability to tokenize assets or support DeFi use cases—areas where Stellar is rapidly gaining groundStellar (XLM) hinta, kaaviot, markkina-arvo ja muut mittarit^[11].

XLM Price Prediction: A Long-Term Outlook

For XLM, the 2025 price trajectory hinges on three factors:
1. Adoption of Soroban by DeFi and remittance platforms.
2. Expansion of Visa's stablecoin network through Stellar.
3. Regulatory clarity for tokenized assets and cross-border payments.

Current data suggests XLM's transaction volume in the remittance sector is growing, though exact figures remain undisclosedLatest Stellar (XLM) Price Analysis^[12]. However, the token's utility as a bridge asset (facilitating fiat-to-crypto conversions) and its role in RWA tokenization could drive demand. Analysts at CoinMarketCap project XLM's price to reach $0.25 by 2025's end, up from $0.12 in early 2025, driven by institutional inflows and Soroban's enterprise adoptionStellar (XLM) Price Prediction For 2025 & Beyond^[13].

Conclusion: Stellar's Edge in the Remittance Revolution

While XRP retains a first-mover advantage, Stellar's technological agility and institutional partnerships position it to outperform in the long term. Soroban's developer-friendly tools and RWA capabilities address pain points in traditional remittance systems, while Visa's integration validates Stellar's role in mainstream finance. For investors, XLM's potential lies in its ability to scale beyond cross-border payments and into broader financial infrastructure—a vision that aligns with the 2025 global shift toward tokenized economies.