When comparing ETH to XLM, one might see certain similarities. First of all, the value of both coins depends largely on their properties. The possibilities of their upgrades could open up endless potential for investors and users.

Stellar Lumens Opportunities

Stellar is an open-source decentralized payment protocol based on its own blockchain. Its cheap and fast network provides near-instant transactions between any currency pairs. It uses its own digital asset called Lumens (XLM) as a medium of exchange.

Since its launch in 2014, XLM has survived two major price spikes — in 2018 and 2021. During the 2018 rally, the price of the coin reached its historic high of $0.93. In 2021, the peak was $0.79.

Stellar Lumens is influenced by the general market trend. When the market goes up, XLM price increases — and vice versa. Upgrades of the network also have a bit of impact. For example, at the end of 2017, Stellar upgraded its protocol, which coincided with its first price rally. The current protocol 18 was introduced at the end of 2021, which caused a slight price increase as well.

In general, the best time to make profits with an investment is when there is an obvious upward trend in bitcoin and other leading cryptocurrencies. With XLM, this trend usually repeats itself.

Stellar opens up numerous possibilities for its users. First, it allows conducting transactions in multiple currencies in real-time almost instantly. Second, the network is completely open-source. Anyone can join or even create a node while maintaining privacy and avoiding excessive bureaucracy.

This accessibility makes Stellar suitable for accounting. The network is capable of recording and storing billions of transactions, all of which are easily traceable. The decentralized nature of the network also makes it impossible to illegally alter or falsify information.

For traders and investors, XLM could be an interesting investment opportunity that promises high returns during price recoveries.

Ethereum Opportunities

Thanks to its smart contract feature, the potential of the Ethereum blockchain goes far beyond cryptocurrency transactions. A smart contract is a digital form of agreement that can be used in numerous fields. It is a digital agreement with legal effect. On the Ethereum network, smart contracts are used as a consensus mechanism to confirm transactions.

Ether is also sensitive to general trends. The coin hit two price highs in 2018 ($1,396) and 2021 ($4,891). Unlike XLM, ETH reached its historic high during the 2021 price rally, mostly due to the anticipated introduction of The Beacon Chain upgrade. The upgrade went live on December 1, 2021.

The release of upgrades could be the best time to make profits with investments and trading ETH. Nevertheless, the general cryptocurrency market could significantly affect the price dynamics as well.

Thanks to its open-source code, the Ethereum network offers numerous opportunities to implement smart contracts outside of the cryptocurrency industry. This feature of automating agreements and the ability to avoid middlemen make the Ethereum blockchain attractive to businesses.

Unlike Stellar, which has been released in its entirety, ETH is generated through mining. So far, the mining process is less expensive and difficult than that of bitcoin. Therefore, ether’s volatility could bring profits not only to traders and investors but also to cryptocurrency miners.

Forecast for XLM and ETH in 2023

Although the second half of 2021 was bearish for XLM, experts are optimistic about its future. They expect the coin to grow rapidly in the first half of 2022, with the most optimistic price mark at $0.95.

Ethereum’s price expectations for 2022 are also bullish due to continued growth in the implementation of smart contracts and DeFi. Also, an ETH 2.0 upgrade called Serenity is coming. It is expected to be released in 2022. In this context, some experts name the plank of $7,000 or even $10,000.

If you feel that these classic digital coins are not to your taste, you can always opt for a more controversial but interesting crypto like LISK.

To Sum Up

Both XLM and ETH have their own functions and purposes. Stellar is meant for facilitating cross-border transactions, while Ethereum’s features open up unlimited possibilities for developers. Ultimately, either of these coins could be a promising investment, depending on one’s initial purpose.

Ethan Moore

Ethan Moore, crypto and stock trader since 2012. Co-founder of Blockwatch experts team.