Ripple CTO Discusses XRP and Stellar (XLM) Price Correlation – Times Tabloid

The
cryptocurrency
community
has
recently
been
abuzz
with
discussions
surrounding
the
striking
similarity
in
price
movements
between
Ripple’s
XRP
and
Stellar’s
XLM.
David
Schwartz,
the
Chief
Technology
Officer
at
Ripple,

offered
his
insights
into
this
intriguing
phenomenon.

Schwartz
acknowledges
the
complexity
of
the
issue,
highlighting
evidence
that
both
supports
and
contradicts
the
idea
of
a
direct
link
between
the
two
cryptocurrencies’
internal
dynamics.

Read
Also:
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Bard
Sets
Stellar
Lumens
(XLM)
Price
For
October
1
With
Three
Key
Reasons 

One
interesting
observation
he
made
was
the
minimal
impact
of
Stellar’s
substantial
token
burn
event
last
year.
Despite
reducing
its
total
supply
by
half,
the
burn
did
not
cause
a
significant
divergence
in
XLM’s
price
or
its
correlation
with
XRP.

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David
Schwartz
noted:

“The
one
bit
that’s
the
most
convincing
to
me
is
that
Stellar
burned
half
their
supply
and
there
wasn’t
so
much
as
a
blip
on
their
price
chart
or
any
real
deviation
from
XRP’s
price
correlation.”

This
evidence
suggests
that
a
similar
token
burn
by
Ripple,
which
holds
a
significant
portion
of
XRP,
might
not
necessarily
translate
to
a
price
increase
for
XRP.
Schwartz
reportedly
analyzed
charts
comparing
the
price
movements
of
both
tokens
before
and
after
the
Stellar
burn,
and
they
revealed
no
substantial
changes
in
their
relative
performance.

Deciphering
the
Shared
Price
Movement

While
XRP
and
XLM
exhibit
a
synchronized
price
pattern,
it’s
crucial
to
recognize
their
distinct
tokenomics.
XRP
boasts
a
total
supply
of
99.98
billion
tokens,
with
55.43
billion
in
circulation.

According
to
Coinmarketcap’s
data,
XRP’s
price
is
around
$0.5375,
with
a
market
capitalization
of
$29.1
billion.
XLM
has
a
total
supply
of
50.001
billion
tokens,
with
28.976
billion
circulating.
Its
price
is
approximately
$0.111,
leading
to
a
market
capitalization
of
$3.14
billion.

So,
what
could
be
driving
this
price
correlation
despite
their
differences?
The
answer
likely
lies
in
their
intertwined
history
and
the
broader
market
dynamics.
Jed
McCaleb,
a
co-founder
of
Ripple,
created
Stellar
as
a
decentralized
alternative.

As
a
result,
the
Stellar
ecosystem
often
mirrors
the
movements
of
XRP.
Additionally,
investors
often
seek
opportunities
in
similar
assets,
leading
to
capital
flowing
into
both
markets
and
potentially
causing
their
price
movements
to
converge.

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us
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@TimesTabloid1

—
TimesTabloid
(@TimesTabloid1)

July
15,
2023

Read
Also:
Ripple
CEO’s
Cryptic
78-Day
Reference
Sparks
XRP
Price
Speculation
Within
the
Community

Looking
Ahead:
Unraveling
the
Mystery

Further
analysis
is
required
to
fully
understand
the
nature
of
this
price
correlation
between
XRP
and
XLM.
Several
factors
beyond
tokenomics
might
be
at
play,
including
overall
market
sentiment
towards
cross-border
payment
solutions,
regulatory
developments
impacting
the
cryptocurrency
industry
as
a
whole,
and
even
the
trading
practices
of
major
cryptocurrency
exchanges.

By
delving
deeper
into
these
areas,
the
cryptocurrency
community
can
gain
a
clearer
picture
of
the
forces
driving
the
price
movements
of
XRP
and
XLM.
This
improved
understanding
can
benefit
investors
and
market
participants
by
allowing
them
to
make
more
informed
decisions.

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