As an experienced financial analyst, I find the correlation between XRP and Stellar (XLM) intriguing and worth delving deeper into. David Schwartz’s recent response to Good Morning Crypto on this issue sheds light on the complex factors driving their valuation.
In a conversation on topic X, Ripple‘s Chief Technology Officer (CTO), David Schwartz, referred to as JoelKatz, addressed inquiries concerning the striking price resemblance between XRP and Stellar (XLM). This interaction has shed light not only on the intricate market connections of these two significant cryptocurrencies but also the intricacies impacting their evaluation.
Curious Correlation Between XRP And XLM
As an analyst, I’d say: In response to Good Morning Crypto’s post questioning the similar price trends of XRP and XLM since 2014 and the possibility of a simultaneous breakout during this bull run, I admit I don’t have a definitive answer. However, my assessment is that the prices of both cryptocurrencies are primarily influenced by external factors beyond their respective ecosystems.
As a researcher, I’ve come across Schwartz’s theory, which posits a strong correlation between the prices of Stellar (XLM) and Ripple (XRP). However, it’s important to note that there are conflicting pieces of evidence supporting this theory.
The conversation highlights a larger story in the cryptocurrency world, as XRP and XLM, both founded by Jed McCaleb, not only share a creator but also employ comparable technological foundations to facilitate cross-border transactions. However, the lack of price reaction following Stellar’s token burn has left many analysts and crypto enthusiasts perplexed.
XRP and XLM have shown similar price trends in the past, possibly because of their shared applications, the behaviors of investors, and how the market perceives them. As financial instruments that enable swift, low-cost cross-border transactions, they’ve drawn interest from investors seeking alternatives to traditional banking systems and their associated challenges.
The attitude of investors towards the market significantly influences the situation. News affecting a single crypto has the potential to influence others because of their perceived interchangeability. Furthermore, changes in regulations for one crypto could unintentionally affect investor attitudes towards the other.
Popular pro-XRP lawyer Bill Morgan commented on this, “I don’t know what causes it but it shows how useless Ripple burning the escrow would be. Stellar burned XLM and Ripple did not burn XRP and it had no impact on the symmetry. Same for the lawsuit. No impact overall. Stellar was not sued. Factors external to either blockchain and not specific to either Ripple or Stellar must be the explanation.”
As an analyst, I’ve noticed that the ongoing discussion revolves around the possibility of XRP and XLM experiencing substantial growth during an expected bull run. Based on historical price trends, there seems to be a strong correlation between these two digital assets. However, it’s essential to keep in mind that external factors, such as global market conditions and macroeconomic elements, could significantly impact their performance. Schwartz’s perspective underscores this notion.
At press time, XRP price stood at $0.5282.
Read More
- CORE PREDICTION. CORE cryptocurrency
- Top gainers and losers
- SYS PREDICTION. SYS cryptocurrency
- KUNCI PREDICTION. KUNCI cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- CFG PREDICTION. CFG cryptocurrency
- Best coins for today
- DOGE PREDICTION. DOGE cryptocurrency
- THOR PREDICTION. THOR cryptocurrency
- STFX PREDICTION. STFX cryptocurrency
2024-05-27 15:04