Stellar (XLM) Price Surge: A Cheaper Alternative to Ripple’s XRP?

As Ripple’s XRP valuation surged to over $184 billion, investors have been shifting their focus to Stellar (XLM), a popular alternative that has historically exhibited a close correlation with XRP. Stellar recently reached a high of $0.5146, marking its highest level since December 2, with a 555% jump from its lowest level in 2024.

Correlation between XRP and XLM

The correlation coefficient between XRP and XLM over the past seven days was 0.99, and 0.85 over the past 30 days. This close correlation is likely due to both coins operating in the same industry. Ripple aims to simplify the cross-border payment industry using RippleNet technology, while Stellar provides technology that enables companies to build payment solutions.

Additionally, Stellar’s founder, Jed McCaleb, was also a co-founder of Ripple, making XLM often considered Ripple’s “cousin.” However, Stellar is not a hard fork of XRP but rather a separate entity with a different mission, codebase, and decentralized network.

Why XLM Price is Rising

The reasons behind XRP’s price surge are also expected to positively impact Stellar. For instance, an XRP ETF approval could lead to an XLM ETF application, given the Grayscale Stellar Lumens Trust has already attracted over $59 million in assets. Other potential catalysts include:

  • XLM still has room for more gains to reach its record high, requiring a 65% increase to revisit its 2021 peak of $0.80.
  • The weekly chart shows a golden cross pattern, where the 50-day moving average crosses above the 200-day moving average, a well-known bullish chart pattern.
  • Stellar is attempting to retest last year’s high of $0.6350, and a confirmed close above this level could signal further gains.

Investment Opportunities

As XRP approaches its all-time high, investors are looking for more affordable alternatives. Stellar’s price surge and potential for further gains make it an appealing option. With its lower valuation and potential for growth, XLM could be a lucrative investment opportunity for those looking to diversify their portfolio.

As the cryptocurrency market continues to evolve, it’s essential to stay informed about the latest developments and trends. For more news and updates on the world of cryptocurrencies, visit Global Crypto News.

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