Long correlated during the XRP, the XLM of the Stellar blockchain has just taken off and enters in the top 10 of the most capitalized cryptomonnages. A consequent upward movement fuelled by the misfortunes of its rival cryptomoney the XRP?
The Stellar rocket (XLM) takes off and climbs by +130% in 24 hours.
The XLM takes off
Due to its technical similarities with Ripple’s XRP, the XLM of the Stellar blockchain has long been correlated with this asset. Furthermore, the Stellar network is a Ripple fork created in 2014 under the impetus of its founders Jed McCaled, who is also the co-founder of Ripple.
For a number of years now, the prices of the two assets have been Bitcoin Revival correlated to a significant degree. However, recent events have changed this, allowing Stellar to take off.
At the time of writing, the XLM is exploding, with a spectacular increase of over 150% on a weekly basis. How can such an increase be explained?
On 22 December, the SEC filed a lawsuit against Ripple for illegally selling the equivalent of $1.3 billion worth of XRP. Since then, the price of XRP has continued to plummet and has been halved until it has stabilised at around $0.25. The price of XRP has been falling steadily since then. Many believe that a migration of funds from XRP to XLM has now begun.
Moreover, the Stellar network and XLM itself appear to be benefiting from the recent decision by a US institution to allow all banking institutions in the US to use public blockchains and the stable corners they host to make payments.
Indeed, Stellar already hosts several stablecoins on its network, such as the famous USDC or the EURB, a stablecoin issued by a German bank.
Moreover, the XLM reacted quickly after Stellar’s announcement earlier this week that the Ukrainian government had selected its teams to help it create a digital central bank currency.
Since then, the Ukraine has downplayed Stellar’s importance in the project, saying that the XLM would not play any role in the creation of the digital currency. However, this has not stopped investors from rushing into cryptography.
It should not be forgotten that this comes at a time when the market is going through a significant euphoric phase. In addition to the fundamental aspect of Stellar, the technical plan was particularly favourable to such a rise.
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A dazzling entry in the top 10
As a result, the price of the XLM over the last 24 hours has risen by more than 130% to its highest point of $0.39. The price of the XLM has more than doubled in less than 24 hours and corrects slightly to around $0.33 at the time of writing.
This meteoric rise caused XLM to enter the top 10 of the most capitalized cryptomoney companies, with more than $7.3 billion. The XLM has thus exceeded the capitalisation of the BNB of Binance and the LINK of the Chainlink project.
This remarkable performance brings it closer to the XRP, whose capitalisation currently represents $10.5 billion.