Stellar vs Hedera: Key Differences (XLM vs HBAR)
Complete side-by-side comparison of Stellar and Hedera. Price, market cap, technology, and more.
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What is Stellar?
Jed McCaleb co-founded Ripple, then left to build Stellar with a focus on financial inclusion. It targets remittances to developing countries where bank fees destroy the value of small transfers. Partnerships with MoneyGram and various central banks keep it relevant.
What is Hedera?
Hedera took a different path: governance by a council of major corporations including Google, IBM, and Boeing. The hashgraph consensus is technically different from blockchain and claims better performance. Enterprises love the stability; crypto natives debate the centralization.
Price Evolution
Percentage change from start of period
XLM+1.79%HBAR-12.81%Detailed Comparison
| Metric | XLM | HBAR |
|---|---|---|
| XLM HBAR | ||
| Price & Market | ||
| Price | $0.162 | $0.088 |
Price $0.162 $0.088 | ||
| Market Cap | $5.35B | $3.80B |
Market Cap $5.35B $3.80B | ||
| 24h Volume | $65.02M | $37.83M |
24h Volume $65.02M $37.83M | ||
| Volume/Cap Ratio | 1.22% | 1.00% |
Volume/Cap Ratio 1.22% 1.00% | ||
| Market Dominance | 0.00237179% | 0.00168421% |
Market Dominance 0.00237179% 0.00168421% | ||
| All-Time High | $0.876 | $0.569 |
All-Time High $0.876 $0.569 | ||
| ATH Date | Jan 3, 2018 | Sep 15, 2021 |
ATH Date Jan 3, 2018 Sep 15, 2021 | ||
| Performance | ||
| 24h Change | 0.17% | 0.46% |
24h Change 0.17% 0.46% | ||
| 7d Change | 3.75% | 2.41% |
7d Change 3.75% 2.41% | ||
| 30d Change | 1.79% | 12.81% |
30d Change 1.79% 12.81% | ||
| Supply | ||
| Circulating Supply | 33.08B | 43.32B |
Circulating Supply 33.08B 43.32B | ||
| Total Supply | 50.00B | 50.00B |
Total Supply 50.00B 50.00B | ||
| Max Supply | Unlimited | 50.00B |
Max Supply Unlimited 50.00B | ||
| Technology | ||
| Consensus | Stellar Consensus Protocol | Hashgraph (aBFT) |
Consensus Stellar Consensus Protocol Hashgraph (aBFT) | ||
| Block Time | 3-5 seconds | 3-5 seconds |
Block Time 3-5 seconds 3-5 seconds | ||
| TPS (Transactions/sec) | 1000 | 10000 |
TPS (Transactions/sec) 1000 10000 | ||
| Launch Year | 2014 | 2019 |
Launch Year 2014 2019 | ||
| Transaction Fees | ||
| Average Fee | < $0.01 | < $0.0001 |
Average Fee < $0.01 < $0.0001 | ||
| Fee Model | Stellar Consensus Protocol | Hedera Hashgraph, fixed low fees |
Fee Model Stellar Consensus Protocol Hedera Hashgraph, fixed low fees | ||
| General | ||
| Primary Use Case | Cross-border payments, Remittances | Enterprise, Tokenization, Supply chain |
Primary Use Case Cross-border payments, Remittances Enterprise, Tokenization, Supply chain | ||
| Founder | Jed McCaleb, Joyce Kim | Leemon Baird, Mance Harmon |
Founder Jed McCaleb, Joyce Kim Leemon Baird, Mance Harmon | ||
| Website | stellar.org | hedera.com |
Website | ||
| Volatility & Risk | ||
| Drawdown from ATH | 81.5% | 84.6% |
Drawdown from ATH 81.5% 84.6% | ||
Technology Comparison
Use Cases & Ecosystem
Why Stellar?- ✓Built for cross-border payments and remittances
- ✓Non-profit foundation with clear mission
- ✓Partnerships with MoneyGram and various banks
Why Hedera?- ✓Governed by Fortune 500 companies (Google, IBM, Boeing)
- ✓Unique hashgraph consensus - mathematically proven
- ✓Enterprise-grade with real corporate adoption
Stellar Risks
- ✗Slower adoption than initially promised
- ✗Limited smart contract capabilities
Hedera Risks
- ✗Seen as too centralized by crypto purists
- ✗Smaller retail community and DeFi ecosystem
Investment Considerations
The Verdict
Both Stellar and Hedera serve important roles in the crypto ecosystem. Stellar focuses on cross-border payments, remittances, while Hedera is known for enterprise, tokenization, supply chain. Many investors choose to hold both as part of a diversified crypto portfolio.
Frequently Asked Questions
What is the main difference between Stellar (XLM) and Hedera (HBAR)?
Stellar focuses on cross-border payments and remittances with its Stellar Consensus Protocol, aiming for financial inclusion. Hedera uses the Hashgraph consensus, targeting enterprise use cases like tokenization and supply chain management with higher throughput and corporate governance.
Which is faster, XLM or HBAR in terms of transactions per second (TPS)?
Hedera (HBAR) offers a significantly higher TPS of around 10,000 compared to Stellar's (XLM) 1,000 TPS. This makes HBAR more suitable for high-volume enterprise applications requiring fast processing.
Is Stellar or Hedera better for remittances and cross-border payments?
Stellar (XLM) is specifically designed for remittances and cross-border payments, especially targeting developing countries with high bank fees. Hedera is more enterprise-focused, so Stellar is generally the better choice for remittance use cases.
How do the consensus mechanisms of XLM and HBAR differ?
Stellar uses the Stellar Consensus Protocol, a federated Byzantine agreement designed for quick and energy-efficient consensus. Hedera uses Hashgraph, an asynchronous Byzantine Fault Tolerant (aBFT) consensus that is not blockchain-based and claims higher performance and security.
Which platform is more decentralized, Stellar or Hedera?
Stellar is more decentralized with community-driven nodes and partnerships, while Hedera is governed by a council of major corporations like Google and IBM, leading to debates about centralization despite its technical strengths.
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