- Ripple CTO David Schwartz talks about the strange price fluctuations of XRP and Stellar.
- Schwartz draws attention to the wider ramifications for both cryptocurrencies as well as the absence of price effect from Stellar’s token burn.
David Schwartz, popularly known as JoelKatz, the Chief Technology Officer (CTO) of Ripple, answered questions about the remarkably identical price swings of Stellar (XLM) and XRP in an exchange on X by influencer Good Morning Crypto.
This discussion has brought to light not only the intricate factors affecting the value of these two significant cryptocurrencies, but also their intertwined market dynamics.
🚨📈 $XRP versus $XLM PRICE CHART SINCE 2014 💥🚨 per: @JoelKatz
What's causing this unnatural price symmetry & will these 2 breakout together during this bull run?? 🤔💭
Comment Below & Follow For More! 👇👇
#CryptoInsights #Ripple #Stellar #AltSeason pic.twitter.com/rFzvhrICsU— Good Morning Crypto (@AbsGMCrypto) May 26, 2024
Strange Relationship between XLM and XRP
After highlighting a long-term price chart comparison between XRP and XLM since 2014, Schwartz openly questioned the “unnatural price symmetry” and the possibility that both will “breakout together during this bull run.”
“I honestly do not know,” Schwartz shot back. My best guess is that the main causes of both prices are entirely unrelated to their ecosystems.
Schwartz did concede, though, that there was contradictory data supporting his theory. He mentioned the noteworthy occurrence of Stellar burning half of their token supply when asked for details on the odd correlation, which oddly had no effect on their pricing or the price correlation pattern with XRP. He said:
“The one thing that most convinces me is that Stellar burned half of their supply and there was not even a blip on their price chart or any real departure from the price correlation of XRP.”
Same Technology and History
This discussion sheds light on a bigger picture in the cryptocurrency sector, where Jed McCaleb, the founder, and similar technology architectures used to process international payments connect XRP and XLM.
Though there are parallels, analysts and the cryptocurrency community have found it especially perplexing because there has not been a price effect since Stellar’s token burned.
Current Market Performance
CoinMarketCap data show that XRP is currently trading at about $0.5267, down 0.94% over the last 24 hours. Furthermore, with XRP down 1.56% over the last 7 days, it shows a bearish posture.
Stellar’s price, in the meantime, is at $0.1078, having moved 1.30% and 3.74% lower in the last 24 hours and 7 days.
On the other hand, according to earlier ETHNews reporting, institutional acceptance and new partnerships were mentioned as possible elements that might raise the value of XRP after Ripple’s legal challenge.