XLM Vs TON Comparison: Which is Suitable for Investment?
1970-01-01Bittime - Stellar (XLM) and Toncoin (TON) have huge potential in various sectors, from fast transactions to DeFi applications. Learn the differences between Stellar (XLM) vs Toncoin (TON) in this article.
However, although both look promising, each has different characteristics and advantages. So, which one is more suitable for your investment?
This article will discuss the comparison between XLM and TON, covering the latest news, their respective utilities, as well as the latest price movements of these two tokens.
XLM Vs TON: Latest News
Toncoin (TON) and Stellar Lumens (XLM) are currently in the spotlight of crypto investors. Toncoin recently recorded an extraordinary spike in trading volume, reaching $1.55 billion (around IDR 25.1 trillion) within 24 hours, thanks to movements from previously inactive wallets.
The spike occurred after a wallet that had been inactive for two years moved 1.2 billion TON to a new address, followed by another large transaction.
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Despite surging trading volumes, TON prices remained stable, indicating that the market can absorb large transactions without extreme volatility.
On the other hand, Stellar Lumens (XLM) is no less interesting. XLM has recently shown significant price increases, topping $0.46 (roughly IDR 7,400) with an increase of almost 50% since the price drop last December.
Stellar also shows a bullish pattern which indicates the potential for further price increases, and could even reach last year's highest price, namely $0.64 (around Rp. 10,350). XLM's success is also due to a number of strategic partnerships that strengthen its DeFi position and increase global adoption.
XLM Vs TON: Utility Comparison
When comparing these two tokens, one of the main factors is their utility in the crypto ecosystem.
1. Transaction Speed and Fees
XLM (Stellar) is known for its very low transaction fees, less than $0.01 (around IDR 160) per transfer and with very fast transaction confirmation speeds.
In contrast, TON (Toncoin) although more expensive, with transaction fees more than 500 times higher than XLM, has advantages in decentralization and security.
2. Staking and APY
TON offers staking with an Annual Percentage Yield (APY) of 4%, which is quite attractive for investors who want to earn passive profits.
Meanwhile, XLM only provides an APY of 1%. This makes Toncoin more attractive to those who want higher returns from staking.
3. Decentralization
TON has an advantage in terms of decentralization, with more nodes and a higher degree of decentralization compared to XLM, which can make it more secure and harder to manipulate.
4. Service Provider
Both platforms support a variety of services including Layer-2 tokens that enable developers to build decentralized applications (DeFi) on top of their respective underlying blockchains.
Both also support self-custody, giving users complete control over their assets.
Read also: What is Solscan? Here's How to Use It on the Solana Network!
XLM Vs TON: Latest Price Movements
To make comparison easier, here is the latest data on price movements and market statistics from XLM and TON.
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Conclusion
Both Stellar (XLM) and Toncoin (TON) have their own advantages. XLM is superior in terms of low transaction costs and high speed, making it ideal for fast and cheap transactions.
Additionally, with its lower APY, XLM is suitable for investors who are more conservative and prioritize stability.
On the other hand, Toncoin offers a higher degree of decentralization and greater staking returns, suitable for those seeking higher potential profits through staking. However, TON transaction fees are more expensive and slightly slower than XLM.
Both tokens have great potential in the blockchain and DeFi ecosystem, but the choice between XLM and TON depends on your investment goals—whether you prefer fast and cheap transactions (XLM) or decentralization and more profitable staking (TON).
FAQ
Is XLM or TON more suitable for long-term investment?
If you are looking for a more stable investment with low fees, XLM is a good choice. However, if you are interested in decentralization and profitable staking, TON could be a more attractive option.
What is staking in XLM and TON?
Staking is the process of locking a certain amount of tokens to earn returns (APY). XLM offers 1% APY, while TON offers 4% APY.
Which is faster in transactions, XLM or TON?
XLM has higher transaction speeds and lower fees than TON.
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Reference
Blockchainreporter, Toncoin’s Dormant Wallet Mystery, Stellar’s DeFi Expansion, and Web3Bay’s DAO Revolution Unveiled, accessed January 9, 2025.
Coinexams, TON Vs. Stellar, accessed January 9, 2025.
Coinswitch, Crypto Compare, accessed January 9, 2025.
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