Is Xiao stronger than Diluc in Genshin Impact?

Yes, without a doubt.

The initial hype around Diluc only happened because he was one of the first 5-star DPS characters in the game, so there weren’t many characters to compare him to. Nowadays, while Diluc is still a fantastic main DPS, compared to other 5-star characters, Diluc’s DPS ranks pretty low.

Xiao, on the other hand, is a DPS that ranks either third or fourth place (depending on who you ask), below Ganyu (obviously first place), Hu Tao, and/or Eula.

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