XLM Bucks the Trend: Defies Down Market and Rises Alongside XRP
The price of XLM is going up with XRP on a bad day for cryptocurrencies, but there may not be a link between the two.
With all the talk about XRP and the lawsuit against the SEC, a lot is going on. Even though the price of XLM has increased by 1.9% to $0.084, it is not made by Ripple Labs and has nothing to do with XRP. Still, both XLM and XRP are created to make international transactions fast and cheap, and they use the exact consensus mechanisms to check transactions.
XLM could be following XRP up
As for the current situation, XRP has been in a legal battle with the SEC since December 2020, when the SEC sued Ripple, the company behind XRP, saying that XRP is an unregistered security. As investors and traders carefully dive into the XRP and XLM, Ripple Labs will likely win this court case.
On the other hand, XLM hasn’t had any legal problems with regulators. This could make it a better investment choice for some investors who want a cryptocurrency without legal issues.
XLM has also been making some important partnerships and developments, which could be why its price is increasing.
For example, the Ukrainian government said in December 2020 that they would use the Stellar blockchain to make a digital currency for the central bank (CBDC). Also, the USDC stablecoin was released on the Stellar network in February 2021. This gave the XLM cryptocurrency more liquidity and ways to use it.
In short, it is impossible to know why the price of XLM went up concerning the legal situation of XRP.
Even so, XLM’s lack of problems with regulators and its recent collaborations and improvements may be important. Still, it’s important to research and makes educated decisions based on your risk tolerance and investment goals.
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