The $XLM price has increased 15% this month and is currently trading above $0.10.
During that same period, the price of XRP increased by 35%, so Stellar's price action should not come as a surprise to traders. As usual, when $XRP pumps, XLM tends to follow.
Why? Both XRP and XLM were created by Jed McCaleb, an American programmer, businessman, and philanthropist. He created Stellar and was CTO of Ripple until 2013.
Additionally, both are designed to enhance cross-border payment efficiency and provide fast transaction processing times.
Key differences between XRP and XLM
However, there are two key differences between these two altcoins that could prove to be significant:
XRP is primarily aimed at large financial institutions and banks, facilitating interbank payments and large-scale financial transactions. XLM, on the other hand, focuses on individual users and smaller businesses, aiming to enable peer-to-peer trading.
Another difference is that XRP is heavily dependent on the Ripple and SEC cases. For example, the price has increased this month because of rumors that Ripple is close to reaching a settlement with the SEC. If any major positive news breaks out, XRP price will increase, but XLM price will likely not increase on the same scale. Similar to what happened this month.
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However, Stellar has survived two bear markets, similar to XRP. And XLM actually managed to repeat its ATH zone in 2021 (from 2018), while XRP has not yet done so.
What will happen during this price increase? Well, it remains to be seen. For now, these two altcoins are still following each other's path in terms of price action.
This is not investment advice, this is good advice
