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.Thank you for reading this post, don't forget to subscribe!
Given their considerable similarities, Ripple’s Chief Technology Officer (CTO), David Schwartz, has attempted to uncover the factors contributing to the consistent price correlation between cryptocurrencies.
Ripple CTO examines XRP and XLM price trends
Schwartz recently shared a chart on Twitter (formerly Twitter) showing a strong correlation in price movements and patterns between XRP and XLM tokens. In response to an X user who expressed curiosity about similar price trends between the two cryptocurrencies, Schwartz explained the specific reasons behind the unique price movements of XRP and XLM.
Ripple CTO admitted that they lack an accurate explanation for the price correlations between XRP and XLM. However, he pointed out two major factors that could influence the price trend.
Schwartz revealed that the comparable market forces that regulate different cryptocurrencies also regulate XRP and XLM. He further said that most investors and crypto enthusiasts often put XRP and XLM in the same category due to the cryptocurrencies’ historical relationship.
As a result, large numbers of people engage in buying and selling of XRP and XLM simultaneously, causing similar price changes in the cryptocurrencies.
Concluding his analysis, Schwartz said that he believes there is no market manipulation or external “bad forces” that cause these cryptocurrencies to exhibit similar price trends.
Bulls resume price control. Source: XRPUSD on tradingview.com
Latest developments for both assets
XRP and XLM are among the major cryptocurrencies that have attracted significant attention, often seen as leading contenders for cross-border payments and mainstream adoption.
Although both of these cryptocurrencies exhibit similar price tracks, they are experiencing quite different developments in their respective markets and ecosystems.
XRP recently gained regulatory clarity after successfully winning its ongoing legal battle with the United States Securities and Exchange Commission (SEC). Despite speculation that XLM could be the SEC’s next target due to its striking similarity to XRP, the cryptocurrency has not faced the same legal issues as Ripple in the US.
Following the partial legalization success of XRP, the price of XRP increased significantly. While XLM lagged behind with a rise of nearly 90%, it later gave back some of the accumulated gains.
In terms of expansion, XRP has achieved several milestones and gained approval in many regions, including Dubai. The cryptocurrency is positioned to benefit from Ripple’s potential integration into trillion-dollar markets and industries.
Stellar (XLM), on the other hand, is improving its ecosystem by integrating a new testnet upgrade, Protocol 20. Cryptocurrencies are also actively seeking new partnerships with banks to expand their reach and utility.
Featured image from CoinMarketCap, chart from tradingview.com
Disclaimer: The article is provided for educational purposes only. This does not represent NewsBTC’s opinion regarding buying, selling or holding any investment and investing inherently involves risk. You are advised to do your research before taking any investment decision. Use the information provided on this website entirely at your own risk.