Hedera and Stellar are two different projects in the crypto ecosystem with different use cases and goals. But they have a few things in common. First, they’re among the top 20 most-valued coins right now. Second, they have experienced great price surges in the last few weeks.
HBAR went up by over 400% in November. During the same period, XLM went up by almost 300%. Still, which one’s a better investment, between HBAR vs XLM? To answer this question, we must first overview the projects and evaluate their potential for the future.
Overview of HBAR
Hedera is a network created to build and interact with Decentralized Applications (DApps), launched in 2019. This isn’t so innovative. What stands out from Hedera is the use of the hashgraph, an infrastructure similar to blockchains, but with a higher throughput and really low fees.
For example, fees average around one ten-thousandth of a dollar, and they’re validated in 5 seconds. Regarding throughput, Hedera can process up to 10,000 transactions per second.
A defining aspect of Hedera is its focus on serving institutional customers. In this sense, it has been adopted by companies around the world, in sectors like healthcare, energy, finance, and even insurance. Among the most-known companies, we can mention IBM or Unicsoft.
Overview of XLM
Stellar is a blockchain focused on providing solutions for cross-border payments. It was created by Jed McCaleb, who also contributed to the development of Ripple. Through Stellar, users can make international transactions between different currencies. Earlier this year, Stellar added smart contract features, paving the way for DeFi protocols on its chain.
Another key aspect that contributes to XLM’s growth is the numerous partnerships made by the Stellar team. For example, they recently partnered with Mastercard as the backbone of its Mastercard Crypto Credential program. This will let users quickly make cross-border payments through the Stellar network using only an email address.
After getting familiar with both projects, let’s take a look at some XLM and HBAR price prediction.
Market Trends and 2025 Potential
The Mastercard partnership could strengthen the position of XLM in the market. By mid-December, it is ranked #16 by market capitalization. The bullish trend that started in November will likely continue for a while.
Hedera, on the other hand, is ranked #18, but adoption can potentially drive its price and value upward as well. The Hedera team has already partnered with large companies around the world. The network is governed by the Hedera Council, which consists of companies like Google, IBM, Ubisoft, Mondelez, and BitGo.
HBAR
Market analysts agree that the price of Hedera will continue growing during 2025. The price of HBAR is around $0.29 in December 2024, down 48% from its ATH at $0.57. Some predictions believe it will be worth around $0.70 next year. While others are more moderate about its growth, placing the average price around $0.50. It’s likely to reach $1 by 2028.
XLM
For XLM, predictions are equally positive. The token is worth $0.45 by December 2024, down from its ATH at $0.93. Moderate forecasts are unsure about XLM breaking this record in the coming year, and place the average price around $0.80. Other predictions, however, believe it’ll reach $1 by 2025.
HBAR vs XLM: Which Crypto is a Smarter Investment in 2025?
Both Hedera and Stellar are solid projects. They both have a clear purpose and a strong community. An advantage for investors is that they’re not competing against each other, as both have different goals and purposes. The smartest decision is to diversify your portfolio and invest in both assets. This will lead to greater gains, as both coins have a positive outlook for the future.
