XRP News Today: Stellar's XLM Gains 170% Year-Over-Year in Transactions as Ripple's XRP Faces Institutional Dependency

In the rapidly evolving landscape of digital payments, the competition between Ripple (XRP) and Stellar (XLM) has intensified, with both networks vying to lead the future of this sector. The analysis from a prominent YouTube channel, BE CRYPTO SMART, delves into the current performance and strategic differences between these two cryptocurrencies, highlighting their distinct approaches to achieving dominance in the digital payments arena.

Ripple's XRP has seen a significant price surge, reaching $2.28, driven by institutional demand. The company is actively building liquidity pipelines across the Middle East, Asia, and Latin America, attracting major banks and payment processors. However, RippleNet operates as a closed system, requiring institutional approval for participation. This design, while beneficial for compliance and reliability, raises concerns among open finance advocates who value decentralization and permissionless access.

In contrast, Stellar's XLM, priced at $0.2452, is experiencing steady growth in active wallets and stablecoin transactions. Stellar's permissionless network allows developers worldwide to build applications and send payments without seeking approval. This approach is particularly advantageous in regions with limited banking services, where Stellar's technology is gaining traction. The network's anchors enable direct access to stablecoins, smart contracts, and cross-border transfers, fostering adoption in underserved areas.

A key difference between the two networks lies in the utility of their tokens. Ripple's system can function without XRP, as many corporate clients do not require the token for liquidity. This optional use creates uncertainty for XRP's long-term price, as companies may not need to buy or hold the token to benefit from RippleNet. Conversely, Stellar's XLM is essential for every transaction on its network, tying its price directly to network activity. As more users and organizations adopt Stellar, the demand for XLM increases, providing a more stable foundation for its price.

The rivalry between Ripple and Stellar extends to smart contracts, with each network taking a different approach. Ripple's XRPL is introducing hooks and automated market makers (AMMs) to enhance its features, but these updates are conservative and primarily aimed at large institutions. Stellar, on the other hand, has developed Soroban, a full Layer 1 smart contract platform built in Rust. Soroban supports a wide range of DeFi applications, including lending protocols and stablecoin swaps, without requiring developer approval. This openness is attracting developers seeking scalable and affordable alternatives to Ethereum, driving real, organic network usage and supporting XLM's price growth.

Data from BE CRYPTO SMART indicates that Stellar is gaining momentum. Active wallets on Stellar are increasing faster than those on XRP, and the total value transferred on Stellar rose by 170% year-over-year. Developer activity on Soroban doubled in the second quarter of 2025, while XRP's price movements are often driven by news about court cases or exchange listings rather than actual usage. Stellar's XLM price, though slower to move, is backed by daily microtransactions across various platforms, reflecting genuine network activity.

Stellar also holds a regulatory advantage, having quietly partnered with organizations like the IMF and African central banks to build compliant stablecoin systems for aid and financial inclusion. These partnerships involve real money movements in humanitarian corridors, often in regions where traditional banking services are limited. For instance, MoneyGram is already utilizing Stellar's rails for instant cross-border payments, demonstrating the network's practical applications.

In conclusion, the future of digital payments may hinge on whether one prioritizes institutional adoption or open, borderless financial systems. Ripple's polished, institution-focused approach may appeal to those envisioning blockchain use behind closed doors. However, Stellar's open, permissionless network, which empowers individuals and small businesses in underserved regions, is quietly gaining ground. As the utility race continues, Stellar's focus on real transactions and everyday financial needs positions it as a strong contender for leading the future of digital payments.