XRP And XLM Price Correlation Persists, Ripple CTO Explains Why
January 11 2024 - 5:00PM
NEWSBTC
XRP and Stellar (XLM) are two cryptocurrencies that have been
constantly compared in terms of price growth and development. Both
digital assets are dedicated to facilitating cross-border
transactions. Given their considerable similarities, the
Chief Technology Officer (CTO) of Ripple, David Schwartz has
attempted to uncover the factors contributing to the persistent
price correlations between the cryptocurrencies. Ripple CTO
Explores XRP And XLM Price Trends Schwartz has recently taken to X
(formerly Twitter) to share a chart illustrating a strong
correlation in the price movements and patterns between XRP and XLM
tokens. In response to an X user who expressed curiosity regarding
the similar price trends between the two cryptocurrencies, Schwartz
explained the distinct reasons behind XRP and XLM’s unique price
movements. Related Reading: Renowned Finance Author Says
Bitcoin Price Is Headed For $150,000, Reveals Catalyst The Ripple
CTO acknowledged that he lacked an accurate explanation for the
price correlations between XRP and XLM. However, he provided two
major factors that could be influencing the price trends.
Schwartz revealed that comparable market forces that regulate
various cryptocurrencies also control XRP and XLM. He further
stated that most investors and crypto enthusiasts often place XRP
and XLM within the same category due to the cryptocurrencies’
historical connection. As a result, a significant number of
people simultaneously engage in buying and selling XRP and XLM
causing the cryptocurrencies to have similar price movements.
Concluding his analysis, Schwartz stated that he believed there
were no market manipulations or external “evil forces” making these
cryptocurrencies display similar price trends. Bulls resume
control of price | Source: XRPUSD on Tradingview.com Latest
Developments For Both Assets XRP and XLM are one of the major
cryptocurrencies that have gained significant attention, often seen
as the leading contenders for cross-border payments and mainstream
adoption. While these two cryptocurrencies tend to display
similar price tracks, they have been experiencing vastly different
developments in their respective markets and ecosystems.
Related Reading: Cardano Price Explosion: Crypto Analyst Predicts
ADA Price To Hit $6 XRP recently gained regulatory clarity after
successfully gaining a victory in its ongoing legal battle with the
United States Securities and Exchange Commission (SEC). Despite
speculations suggesting that XLM might be the SEC’s next target due
to its striking similarities with XRP, the cryptocurrency has not
encountered similar legal issues in the US as Ripple.
Following XRP’s partial legal success, the price of XRP surged
considerably. While XLM followed behind increasing by almost 90%
but retraced some of the accumulated gains later. In terms of
expansion, XRP has achieved multiple milestones and has gained
approvals in several regions including Dubai. The cryptocurrency is
positioned to gain from Ripple’s potential integration into
trillion-dollar markets and industries. On the other hand, Stellar
(XLM) is improving its ecosystem by integrating a new testnet
upgrade, Protocol 20. The cryptocurrency is also actively seeking
new partnerships with banks to expand its reach and utility.
Featured image from Coinmarketcap, chart from Tradingview.com
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