Financial analyst Common Sense Crypto (CSCrypto) has caused a stir recently with his bullish stance on Ripple’s XRP and Stellar’s XLM. In a social media post, CSCrypto highlights the backing of these cryptocurrencies by influential institutions like the Bank for International Settlements (BIS) and the World Bank, along with central banks around the world.
However, CSCrypto goes beyond endorsements, emphasizing Ripple’s efforts in building a global payment network. He points to their acquisition of money transmitter licenses as a strong indicator for XRP’s future. For XLM, CSCrypto highlights Stellar’s focus on financial inclusion, particularly its work in facilitating banking services for the unbanked population. Their involvement in humanitarian aid and increasing adoption of Stellar rails are reasons for his optimism.
While acknowledging the possibility of differing opinions, CSCrypto concludes by stating his belief that the success of these cryptocurrencies is likely predetermined.
But is there merit to this analysis?
There’s no denying that CSCrypto touches upon significant factors. The backing of prominent institutions undoubtedly lends credibility to XRP and XLM. Regulatory bodies like the BIS are actively exploring central bank digital currencies (CBDCs), and Ripple and Stellar are strong contenders in this space. Ripple’s recent announcement of 10 major CBDC partnerships underscores their rising global influence. If they gain traction as a CBDC solution provider, it could significantly boost demand for XRP.
Similarly, Stellar’s focus on financial inclusion aligns with a global movement towards expanding access to financial services. Stellar lumens (XLM) act as the native currency on the network, facilitating cheap cross-border transactions. Broader adoption of Stellar for these purposes could positively impact XLM’s value.
It’s important to note that both XRP and XLM are correlated, meaning their prices tend to move in tandem.
CSCrypto’s analysis offers valuable insights for investors considering XRP and XLM. It highlights the importance of institutional backing and real-world applications for cryptocurrency adoption. However, as with any investment, conducting your own research and due diligence is crucial before making any decisions.
