XLM price pumped 15% this month and is now trading above the $0.1 level.
During the same period, the XRP price pumped 35%, so Stellar’s price action shouldn’t surprise traders. As it usually is, when XRP pumps, XLM tends to follow.
Why? Well, both XRP and XLM were created by Jed McCaleb, an American programmer, entrepreneur, and philanthropist. He created Stellar and was CTO of Ripple until 2013.
Also, both are designed to improve the efficiency of cross-border payments and offer fast transaction processing times.
Key Differences Between XRP and XLM
However, there are two main differences between these two altcoins that could prove to be significant:
XRP primarily targets large financial institutions and banks, facilitating interbank settlements and large-scale financial transactions. On the other hand, XLM focuses on individual users and smaller businesses, aiming to enable peer-to-peer transactions.
Another difference is the fact that XRP depends a lot on the Ripple vs SEC case. For instance, the price pumped this month since there are rumors out there that Ripple is near a settlement with SEC. If any huge positive news breaks out, XRP price will pump, but XLM price probably won’t follow on the same scale. Similar to what happened this month.
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Show more +However, Stellar survived two bear markets already, similar to XRP. And XLM actually managed to repeat its ATH area in 2021 (from 2018), while XRP hasn’t managed to do this.
What will happen this bull run? Well, it remains to be seen. For now, these two altcoins still follow each other’s path in terms of price action.
Read also: Ripple’s XRP Finally Decouples from Bitcoin Price Path, Up by 10%: Here’s Why
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