Cryptocurrency Twins: Tracing the Parallel Paths of XRP and XLM
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The unique correlation between XRP and XLM stems from their shared roots in technological architecture. Originating from Jedd McCaleb’s involvement in XRP’s development and the subsequent launch of the Stellar network in 2014, these cryptocurrencies share underlying technological features.
Mirroring Market Movements
Interestingly, an intriguing pattern emerges in the historical price actions of XRP and XLM. Notable instances include the surge of XRP to an all-time high (ATH) of $3.3 in January 2018, followed by XLM’s parallel surge to $1.05. Conversely, downturns in XRP’s value often coincided with similar XLM price movements, indicating a consistent correlation.
During a recent episode of the Black Swan Capitalist podcast featuring Francis Hunt, the subject of XRP and XLM’s future roles in the financial revolution re-surfaced. The conversation prompted insights from a high-ranking Ripple executive, suggesting a significant position for these assets in the evolving financial landscape.
Comparing Pepsi and Coca-Cola to Debunk a “One Crypto” Theory
The Ripple executive proposed a striking analogy, likening XRP and XLM to the Pepsi and Coca-Cola of the financial world. This comparison emphasizes the potential similarity in the roles these cryptocurrencies could play, particularly in terms of central bank utility.
But what’s making the ripples is the executive’s remarks hinted at potential adoption scenarios by various central banks worldwide. Some Middle Eastern entities appeared inclined towards one cryptocurrency, while other nations with reservations favored the alternative, indicating diverse preferences for either XRP or XLM.
This analogy suggests a future where XRP and XLM could share a dominant position in the current financial scenario. Together, they can influence financial systems across diverse economies.
Implications of the Cryptocurrency Analogy
Comparing XRP and XLM to Pepsi and Coca-Cola hints at shared dominance and significant influence in the forthcoming financial transformation. This analogy imagines a future where these cryptocurrencies intricately weave into global financial frameworks, each contributing uniquely to various economies and systems.
XLM and XRP have shown similar price movements, reflecting their shared trends. XLM’s value has seen fluctuations recently, ranging from $0.111 in September to a drop of 7.2% to $0.103 in October, followed by a 22.3% rise to $0.126 in November and its current position near $0.1200.
Meanwhile, despite significant advancements, Ripple’s positive strides haven’t propelled XRP to surpass its ATH of $1. Onchain data reveals XRP’s reduced social dominance, declining from 3.86% to 1.5% after being rejected at $0.72, indicating a market shift that might attract swing traders eyeing potential re-entry points.
Filed under: Bitcoin - @ November 20, 2023 1:19 pm