XRP and Stellar (XLM) are two cryptocurrencies that are constantly compared in terms of price growth and development. Both digital assets are aimed at facilitating cross-border transactions.
Given their significant similarities, Ripple’s Chief Technology Officer (CTO), David Schwartz has attempted to uncover the factors that contribute to the persistent price correlations between the cryptocurrencies.
Ripple CTO examines XRP and XLM price trends
Schwartz recently made the move 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 one X user who was curious about the similar price trends between the two cryptocurrencies, Schwartz explained the different reasons behind the unique price movements of XRP and XLM.
Ripple’s CTO acknowledged that he did not have an accurate explanation for the price correlations between XRP and XLM. However, he mentioned two important factors that could influence price developments.
Schwartz revealed that similar market forces that regulate various cryptocurrencies also govern XRP and XLM. He further stated that most investors and crypto enthusiasts often place XRP and XLM in the same category due to the cryptocurrencies’ historical connection.
As a result, a significant number of people are engaged in buying and selling at the same time XRP and XLM causing the cryptocurrencies to exhibit similar price movements.
Concluding his analysis, Schwartz stated that he believed there were none market manipulations or external ‘evil forces’ causing these cryptocurrencies to exhibit similar price trends.
Bulls resume control of price | Source: XRPUSD on Tradingview.com
Latest developments for both assets
XRP and
While these two cryptocurrencies generally exhibit similar price tracks, they have experienced vastly different developments in their respective markets and ecosystems.
XRP has recently successfully gained regulatory clarity achieve a victory in the ongoing legal battle with the US Securities and Exchange Commission (SEC). Despite speculation suggesting that XLM could be the SEC’s next target due to its striking similarities to XRP, the cryptocurrency has not faced similar legal challenges in the US as Ripple.
After XRP’s partial legal success, the price of XRP rose significantly. While XLM followed behind increases by almost 90% but later recovered some of the collected profits.
In terms of expansion, XRP has achieved multiple milestones and gained approval in several regions including Dubai. The cryptocurrency is positioned to benefit from Ripple’s potential integration into billion-dollar markets and industries.
On the other hand, Stellar (XLM) is improving its ecosystem by integrating a new ecosystem testnet upgradeProtocol 20. The cryptocurrency is also actively looking new partnerships with banks to expand its reach and usefulness.
Featured image from Coinmarketcap, chart from Tradingview.com
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