- Ripple CTO David Schwartz highlights unusual price symmetry between XRP and Stellar (XLM).
- Stellar’s token burn had no impact on its price, raising questions about market dynamics.
In a recent discussion on X, Ripple’s Chief Technology Officer David Schwartz delved into the perplexing price symmetry between XRP and Stellar (XLM). Despite their separate ecosystems, these two prominent cryptocurrencies exhibit remarkably similar price movements, a phenomenon that has caught the attention of market analysts and enthusiasts alike.
Schwartz, who is widely recognized in the cryptocurrency community as JoelKatz, addressed this issue during an exchange with influencer Good Morning Crypto. He expressed his curiosity and surprise over the long-term price chart comparison of XRP and XLM, dating back to 2014. Schwartz questioned the “unnatural price symmetry” and speculated about the potential for both cryptocurrencies to “break out together during this bull run.”
“I honestly do not know,” Schwartz candidly admitted when asked about the causes behind this price correlation. He suggested that the primary factors influencing the prices of XRP and XLM might be unrelated to their respective ecosystems. This candid admission underscores the complexity and unpredictability of cryptocurrency markets.
Adding to the intrigue, Schwartz pointed out the peculiar incident of Stellar burning half of its token supply. Despite this significant event, there was no noticeable impact on Stellar’s price, nor did it affect the price correlation with XRP. Schwartz noted, “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.”
This discussion brings to light the deeper, intertwined dynamics of XRP and XLM. Both cryptocurrencies share a common history, as Jed McCaleb, who founded Stellar, was also one of the original developers of Ripple. Additionally, the technologies behind XRP and XLM are designed to facilitate international payments, adding another layer to their connection.
Despite the shared history and technological similarities, the lack of price impact from significant events like Stellar’s token burn continues to puzzle analysts. It highlights the complexities of market behavior, where traditional economic principles may not always apply.
Current Market Performance(XRP)
As of now, CoinMarketCap data shows that XRP is trading at approximately $0.5267, marking a 0.94% decline in the past 24 hours. Over the last week, XRP has decreased by 1.56%, reflecting a bearish trend. Stellar’s price, meanwhile, stands at $0.1078, experiencing a 1.30% drop in the past 24 hours and a 3.74% decline over the past seven days.
Despite these short-term fluctuations, the broader market outlook for XRP might be buoyed by factors such as institutional adoption and new partnerships, particularly following Ripple’s recent legal challenges. These developments could potentially drive future value for XRP, making the ongoing analysis of its price movements in relation to Stellar all the more critical for investors and market watchers.