The success of the Ripple XRP coin has been reflected in the activity of its main rival, Stellar (XLM). In the last five days, the digital asset has gained 20% in value, taking its price to $0.11 per token, a level that has been unseen since November 2022. The spike of the token's value appears to be in parallel to the one led by XRP tokens, raising speculations on possible cause for this situation.

The surge in the value of XLM tokens could be due to unusually high trading volumes on South Korean exchanges. In the last two weeks, the mentions of the token on the leading Upbit exchange has tripled, arousing suspicion from onlookers.

Upon closer inspection, the pattern of the XLM price action subsequent to the success of XRP appears to follow a recognizable format. As the creation of Ripple co-founder Jed McCaleb, both crypto assets hold a special relationship as an analog to that of Shiba Inu (SHIB) and Dogecoin (DOGE). Thus, as the price of one of them increases, investors tend to jump on the bandwagon and look towards similar tokens for potential opportunities, thereby driving the capital across both tokens.

For now, it is indeed a promising time for XLM’s price but it is important to caution that this could also be a sign of an incoming end to the XRP rally, or at worse, both of them. As such, investors should remain vigilant and mindful of their actions in order to avoid incurring losses.



Other News from Today