- McCaleb pointed to Stellar’s low transaction fees and its focus on safety and efficiency, particularly through its smart contract platform, Soroban.
- McCaleb highlighted Stellar’s commitment to financial inclusion and its role in improving access to financial services in underserved markets.
Jed McCaleb, the co-founder of Ripple (XRP) and founder of Stellar (XLM), believes that XLM is in a unique position in the blockchain space. He outlined several reasons why he believes Stellar is undervalued and its features are often overlooked.
Ripple Co-founder Spotlights Stellar’s Capabilities
Talking about Stellar, McCaleb pointed to its high transaction volumes. He noted the network already processes more daily transactions than most blockchains, widely outdoing even Ethereum. “Stellar already does way more transactions per day than all but two networks,” he said.
In his opinion, the network has simplified its infrastructure so that such operations don’t impede development. McCaleb highlighted Stellar’s integrated ecosystem, which seems to incorporate key features like the issuance of stablecoins, token creation, and a decentralized exchange, per the CNF report.
Such built-in capabilities make processes simpler for businesses and developers. Hence, it is a practical solution in many applications. Thus, McCaleb stressed the versatility of the platform, declaring that it was “simpler and well thought out.
Soroban, Stellar’s smart contract platform, is also now in the public eye. McCaleb said it is focused on safety and efficiency, especially the ability to handle common vulnerabilities, such as reentrancy attacks. “Smart contract system that is safer, more performant, and more sustainable,” he said, referencing Stellar’s engineering goals.
Transaction fees, often one of the major concerns in the blockchain space, are almost negligible on Stellar, because of the efficient protocol design. McCaleb noted that the low-cost structure benefits personal users and businesses alike. This makes the platform competitive for financial transactions.
Engineering quality was the other area of attention, as McCaleb complimented the stellar work of the team on the technical foundation and documentation of Stellar. He described the developer resources as “absolutely the best in the industry.” The reason is that these resources greatly simplify the onboarding of developers and encourage innovation within the ecosystem.
The Differentiating Factor
The biggest differentiator for Stellar, as one of the spokespersons, McCaleb, noted, is its mission drive. According to the Ripple co-founder, this is realized by the network’s commitment to improving financial inclusion by facilitating low-cost transactions and access to financial services in underserved markets.
Recent market interest in Stellar turned into a rather impressive price action by native Stellar token XLM. The XLM price skyrocketed by a whopping 478% in November and, at $0.65, a level not seen since mid-2021. As per the CNF report, market analysts are expecting an additional 600% surge in XLM price.
Moreover, McCaleb also identified Stellar’s growth with regulatory developments in the crypto space. After the resignation of SEC Chair Gary Gensler, assets associated with McCaleb, including XLM and XRP, surged unprecedentedly.
The SEC legal issues have previously restricted the rise of Ripple’s XRP but it gained over 30% in the period. However, McCaleb noted that XLM has passed XRP during this period. Also, McCaleb commented on the broader impact that Stellar might make.
He expressed optimism regarding the network’s ability to solve key problems in the digital payments system. In addition, McCaleb noted its potential to offer cost-effective, scalable solutions for both individuals and businesses.
