Utility Coin Comparison: Stellar (XLM) Vs In Chain (VET)

Bittime - Utility coins are increasingly attracting the attention of many investors. Two names that have recently stolen attention are Stellar (XLM) and In Chain (VET). Find the comparison of Stellar (XLM) vs In Chain (VET) in this article!

Both coins have their own uniqueness and offer promising potential, but are also not free from risks. 

This article will discuss the comparison between Stellar and In Chain, and how both have the potential to surpass the growth of Bitcoin, which has been king in the cryptocurrency market.

Stellar (XLM) Vs In Chain (VET) Comparison

Stellar (XLM) and In Chain (VET) have different focuses in the blockchain ecosystem. Stellar, with a mission to facilitate fast and cheap cross-border money transfers, has established partnerships with major financial institutions, including IBM. 

On the other hand, In Chain (VET) focuses on increasing transparency and efficiency in the supply chain. This makes it an attractive option for companies looking to improve their operations.

Both showed significant growth, with Stellar recording a surge of more than 630% since the start of the bull run, far outpacing Bitcoin's 55% growth. Meanwhile, VET saw an increase of nearly 330%, indicating that this utility coin is increasingly in demand among investors.

Read also: The Importance of XLM Coin for the Stellar Network: Must Know!

Stellar (XLM) and In Chain (VET) Outpace Bitcoin Growth

The significant price increases of Stellar and In Chain show that these utility coins are able to attract attention amidst Bitcoin's dominance. With Bitcoin recently hitting a record high of around $100,000 (around Rp. 1.6 billion), XLM and VET provide much greater returns for investors. 

This shows that there is huge potential in utility coins that the market may not yet fully explore.

Utility Tokens Are Stealing the Show

In recent months, utility tokens such as XLM and VET have caught the attention of many retail traders. Analysts note that traders tend to prefer utility tokens that have proven themselves in previous bull cycles. 

The existence of a solid track record and historical price behavior gives investors more confidence to target higher returns. 

Stellar, in particular, got an additional boost following reports that the Federal Reserve is considering XLM and XRP as part of the blockchain infrastructure for its FedNow payments system.

Read also: Stellar (XLM): Explanation, Functions, and Everything You Need to Know

Stellar (XLM) Vs In Chain (VET): Potential and Risks

While both coins offer exciting potential, they also face risks that investors need to be aware of.

Potential and Risks of Stellar (XLM)

Potential:

- Cross-Border Transfers: Stellar is designed to facilitate fast, low-cost international money transfers, making it an attractive option for global users.

- Strong Partnerships: Collaborations with major financial institutions increase Stellar's credibility and reach.

Risk:

- Regulatory Challenges: Stellar's focus on money transfers may expose it to legal challenges in various countries.

- Competition with Ripple (XRP): Stellar competes directly with Ripple, which may affect its market share.

Potential and Risks of In Chain (VET)

Potential:

- Applications in Supply Chains: VET is used to increase transparency and efficiency in supply chains, making it attractive for businesses.

- Strong Partnerships: VET has established partnerships with major companies, increasing its reliability and reach.

Risk:

- Relative Centralization: VET has faced criticism regarding centralization in its governance, which can affect community trust.

- Slow Adoption Rate: Adoption of VET technology may be slower than expected, affecting its growth.

Read also: Is Stellar (XLM) a Safe Investment?

Conclusion

Stellar (XLM) and In Chain (VET) show tremendous potential in the world of cryptocurrency. Each of these crypto coins offers different uniqueness and opportunities. 

Both have shown significant growth. In fact, both beat Bitcoin in terms of profit percentage, and attract the attention of investors in this increasingly competitive market. 

However, it is important for investors to understand the risks involved before making an investment decision. With a good understanding of these potentials and risks, investors can be better prepared to deal with the ever-changing dynamics of the cryptocurrency market.

FAQ

Does VeChain have smart contracts?

VeChain uses clauses to interact with smart contracts.

What layer is VeChain?

VeChain is a layer 1 blockchain protocol that provides a low-carbon, highly scalable platform for businesses to build and run decentralized applications (dApps).

What is Stellar XLM?

The Stellar Network was created to support the digital representation of any currency, but it also has a native token called lumen (XLM). Lumen has a special role in the network. 

Is Stellar XLM a good buy?

Although price estimates are susceptible to market volatility and may not always be correct, they think Stellar can continue its development trajectory.

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Reference 

Binance Square, Cryptocurrency Analysis: ADA, VET, and XLM - Pros and Cons, accessed December 26, 2024.

Investing, What’s Behind the Rise of Utility Coins Like XLM and VET?, accessed December 26, 2024.

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