Stellar Lumens Challenges Ethereum: Looks to Smart Contracts

17 March 2024

in XLM

Reading Time: 3 mins read

Stellar Lumens is set up to challenge Ethereum in the smart contract space after the launch of the Soroban project.
The Ripple rival is looking to dominate the market, and with the launch of the smart contracts platform and its innovative financial technology infrastructure, it is set up to lead its rivals.

Earlier this year, the Stellar Development Foundation (SDF) confirmed the launch of the much-anticipated Soroban platform. Deployed through the “Protocol 20” upgrade, which was deemed the greatest upgrade since the launch of the Stellar Lumens network, this platform sees the network rival Ethereum.

As CNF reported, with the new Soroban project, the network will compete with Ethereum, which has been the leader in the smart contract space. It will further enable the network, which was primarily built as a payment blockchain, to attract developers, users, and new applications.

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With the capability to host decentralized applications (DApps) and smart contracts, this marks a new era for the Stellar blockchain. The network becomes a direct rival of Ethereum, which is regarded as the king of smart contracts and the platform for building them. Over the years, several blockchain platforms, including Cardano, Solana, and Polkadot, have challenged Ethereum, but none has been able to topple the world’s second-largest cryptocurrency project.

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But with Stellar, this could be the greatest test for Ethereum yet. Stellar Lumens has already shown its superiority in financial applications. Often regarded as a Ripple rival, not only was it co-founded by a former Ripple co-founder, but it also sought to shake up the financial sector. Specifically, Stellar aims to bank the bankless, bringing financial solutions to those who lack access.

As highlighted by CNF, the project has recorded numerous successes in this regard. More recently, the Stellar Development Foundation (SDF) has made a case for open banking innovations. In an open letter to the US Treasury, the Stellar Development Foundation (SDF) responded to the U.S. Department of the Treasury’s Request for Information on Financial Inclusion, emphasizing the importance of access and leveraging technology to advance financial inclusion efforts, supported by Stellar Lumens (XLM).

With the new upgrade, the project will look to lead the finance revolution with tokenization, digitizing real-world assets for faster transactions. The adoption of Soroban could be accelerated due to its working relationship with traditional financial institutions, including WisdomTree, Deloitte, Franklin Templeton, and Circle.

Going after Ripple and Ethereum, both of which are ranked higher by market cap, could be a big undertaking for Stellar. But it could offer a chance to become the only go-to network that encompasses everything a user and developer could want or need.

At the time of writing, XLM is trading at $0.13 after a drop in the past 24 hours. The token is now down by nearly 10% on the weekly chart. Although the altcoin is struggling to break out of its long-term bearish trend, popular crypto analyst EGRAG expresses optimism for Stellar (XLM) and foresees a rise to $5 due to its expanding potential.