In a recent development that has caught the attention of the cryptocurrency community, Ripple’s Chief Technology Officer, David Schwartz, has shed light on the intriguing correlation between Ripple (XRP) and Stellar’s XLM. This phenomenon has long been a topic of speculation among investors and analysts alike.
XRP-XLM Correlation Debate Stirs Crypto Community
David Schwartz, a respected figure in the digital currency space, addressed the curious trend of XRP and XLM mirroring each other’s market movements. He emphasized that such correlations among digital assets are not uncommon, attributing this pattern to the broader market’s ongoing process of evaluating and pricing these assets. This explanation resonates with the fact that the crypto market is still maturing, where investors are continually adjusting their understanding and valuation of different cryptocurrencies.
Schwartz expressed his scepticism by responding to the notion that Bitcoin’s influence on market liquidity is a primary driver behind this correlation. The cryptocurrency market is known for its complexity and multifaceted nature, making it challenging to pinpoint a single factor as the definitive cause of such trends. This statement opened up the floor for further discussions, with community members proposing a range of potential causes, from algorithmic trading strategies to the hypothesis of a singular entity manipulating both XRP and XLM prices.
David Schwartz Explores Deep XRP-Stellar Price Connection
Another layer to this discussion is the shared history between XRP and XLM. Stellar, the organisation behind XLM, was founded by Jed McCaleb, who co-founded Ripple. This connection has often been cited as a possible explanation for the observed price synchronization. However, Schwartz’s insights suggest that the issue might be more complex, potentially involving a mix of market psychology and historical correlations.
As of the latest market data, XRP is trading at $0.59986968 with total market capitalisation of approximately $32.3 billion. In contrast, XLM stands at $0.12008567, boasting a market cap of about $3.3 billion. Despite these market size and valuation differences, both cryptocurrencies exhibit similar growth patterns, further fueling the debate around their price correlation.
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