XLM profits from XRP’s recent run and spikes 25%
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- Stellar (XLM) is up 25 percent weekly.
- Stellar and XRP have some similar characteristics that could have pushed XLM higher.
The recent rising price of XRP is having a positive effect on the price of its rival Stellar (XLM). XLM has posted a weekly gain of over 17 percent and is up 4.91 percent in the last 24 hours. It is trading at $0.119 as of current data. XLM’s market cap of $3 billion makes it the 25th largest crypto application worldwide. As previously reported, the price of XRP rose more than 35 percent last week compared to leading digital assets such as Bitcoin and Ethereum, which posted massive weekly losses.
Recent data shows that XRP is trading at $0.439. It has risen about 10 percent in the last 24 hours and its weekly gain was 35.18 percent. Data from Santiment (an on-chain analytics company) stated that whale movement and increased trader optimism may be the reason for the recent rise in XRP price. Recent positive developments in Ripple’s ongoing lawsuit with the SEC have fueled traders’ optimism.
The SEC sued Ripple in December 2020, alleging that the blockchain company and its executives were selling its XRP tokens as unregistered securities. Industry analysts believe that the incident may affect several other cryptocurrencies such as XLM. They also believe the issue will determine whether the SEC can exercise full oversight functions over crypto assets.
Last month, the famous asset management company Grayscale hinted in its SEC filing that XLM, ZEN and ZEC might be securities based on current facts. Grayscale’s position is a huge change from their previous stance in May and June when they confirmed that none of the above tokens were securities.
Similar features between Stellar and Ripple
It is worth noting that Jed McCaleb co-founded Ripple and also created Stellar in 2014. This may explain why Stellar and Ripple have some similar features. Like Ripple, Stellar aims to help people send money globally with ease. Additionally, both networks use a consensus process to validate transactions.
They do not use mining and do not require energy-intensive equipment. XRP and XLM have a supply cap; around 50 percent of their tokens are in circulation as of last October. XRP has a supply limit of 100 billion coins, while XLM has 50 billion. Thus, Ripple and Stellar can process many transactions cheaply and faster than most networks.
The design of both networks makes transferring funds faster, easier and better than traditional bank transfers. Stellar and Ripple charge almost zero fees, which is one of their primary goals in addition to safer fund transfers.
One noteworthy fact about Stellar is that it is an open network that allows anyone to build financial products on it. Blue Marble (an eco-friendly NFT marketplace) is an example of a recent project built on the Stellar network.
The NFT marketplace utilizes the Stellar blockchain to issue carbon credits and has a European Biochar Certificate (EBC). EBC is a voluntary industry across Europe.