Recent explosive growth in Stellar's blockchain activity has ignited fresh debate about XRP's current market valuation. As Stellar operations surged in early December according to Artemis data, analysts are reassessing whether XRP—Stellar's parallel player in cross-border payments—is significantly undervalued given the sector's accelerating institutional adoption.
The cross-border payments cryptocurrency sector is experiencing a notable resurgence, with Stellar's recent network activity boom prompting traders to reconsider XRP's position in the market.
According to blockchain analytics platform Artemis, Stellar experienced a significant spike in on-chain operations during early December, signaling potential mainstream adoption of blockchain-based payment solutions. This development carries particular relevance for XRP holders, as both Ripple's XRP and Stellar share remarkably similar foundational objectives: facilitating fast, low-cost international money transfers.
The correlation between these two payment-focused blockchains has historically been strong, with market sentiment often spilling over from one to the other. When institutional interest or regulatory clarity benefits one platform, the other frequently experiences parallel momentum. This interconnected dynamic raises an important question: if Stellar is witnessing genuine utility-driven network growth, shouldn't XRP be experiencing comparable—or perhaps greater—appreciation given Ripple's more extensive institutional partnerships?
Ripple has secured partnerships with numerous financial institutions worldwide, including major banks and payment providers. The company's On-Demand Liquidity (ODL) service, which utilizes XRP for cross-border settlements, has been steadily expanding its footprint across key remittance corridors. Despite these fundamentals, some analysts argue that XRP's current price doesn't fully reflect the token's utility or the growing legitimacy of blockchain-based payment rails.
The recent Stellar activity surge serves as a proxy indicator for the broader cross-border payments market. As traditional financial institutions increasingly explore blockchain solutions to replace antiquated SWIFT infrastructure, both XRP and Stellar stand to benefit. The key differentiator may lie in execution: Ripple's regulatory clarity following its partial legal victory against the SEC positions XRP favorably for institutional adoption in the United States.
Market observers note that XRP has maintained relative stability despite the broader cryptocurrency market's volatility, potentially indicating strong underlying support. However, whether this represents accumulation before a significant move or simply reflects market uncertainty remains to be seen.
For investors evaluating XRP's potential, Stellar's network metrics provide valuable context. If blockchain-based payment solutions are genuinely gaining traction—as Stellar's data suggests—XRP's established infrastructure and institutional relationships could translate into substantial upside potential, assuming continued regulatory progress and sustained market interest in utility-focused cryptocurrencies.