Stellar (XLM) surges 10% as SEC drops lawsuit against Ripple (XRP)
- Ripple's CEO confirmed the SEC had ended its appeal and lawsuit against his firm.
- XLM and XRP recorded significant gains following the announcement.
- Stellar and Ripple are similar since they share origins and purpose in global payments.
In a landmark regulatory move, the United States SEC has dropped its appeal and lawsuit against crypto company Ripple Labs.
Ripple CEO Brad Garlinghouse confirmed the updates, ending a legal fight that began in December 2020.
JUST IN: 🇺🇸 Ripple CEO Brad Garlinghouse declares victory after SEC officially drops lawsuit. “This case has ended. It’s over.”
Meanwhile, the development sparked optimism in the cryptocurrency community, with remittance tokens leading the altcoin rebound.
XRP saw a remarkable jump from $2.23 to $2.55 at press time.
Also, Stellar capitalized on the buzz to outshine other altcoins due to close connections with Ripple.
XLM gained more than 10% on its 24-hour price chart to trade at $0.2933.
Stellar and Ripple: the similarities
Copy link to sectionIn the flooded crypto market, Ripple and Stellar are similar in various ways.
First and foremost, the duo has common origins.
Jed McCaleb was Ripple’s early contributor before he exited to found Stellar in 2014.
Sooo the man that founded Ripple, is the cofounder of stellar! 🤷🏻♀️😅 Oh yea, and is partnered with SpaceX So maybe don’t completely write off stellar
Moreover, Ripple and Stellar handle similar purposes in global remittances.
XRP allows financial institutions and banks to complete cost-friendly and quick international payments.
The company plans to launch its cryptocurrency wallet to ensure smooth transactions.
Meanwhile, XLM prioritizes financial inclusion, allowing businesses and individuals to transact worldwide with fewer charges.
Stellar works with fintech firms, focusing on P2P transactions.
Further, the two blockchains do not rely on Proof-of-Work mechanisms.
XLM adopted SCP (Stellar Consensus Protocol), which depends on quorum to validate transactions.
On the other hand, XRP’s RPCA (Ripple Protocol Consensus Algorithm) relies on trusted nodes for agreement.
Stellar and Ripple handle transactions quicker at minimal charges, making them key for remittance payments.
That explains why XLM mirrors XRP’s price actions amid significant developments.
XLM and XRP prices
Copy link to sectionThe native token traded with substantial gains following the latest SEC decision to end Ripple’s suit.
XLM painted its daily chart green after an over 10% price upswing.
It trades at $0.2933, with a massive 24-hour trading volume signaling more gains.
XRP led the gainers with a swift 15% jump after Garlinghouse’s announcement.
The token trades at $2.55, signaling renewed trader and investor optimism with a 100% uptick in daily trading volume.
XLM and XRP look to extend prevailing gains before potential retracements.
Meanwhile, broad market sentiments remain vital for the duo’s performance in the coming sessions.
Digital assets displayed notable recoveries on Wednesday amid speculations of the Fed not tampering with interest rates.
Bitcoin gained 3% to trade at $84,370, looking ripe for stable recoveries.
However, a solid candlestick closing above $85K is crucial for BTC to shift its short-term trajectory to bullish.
Michael van de Poppe highlights that Bitcoin collected lower timeframe liquidity with the latest crash, signaling potential upside breakouts.
#Bitcoin took the liquidity beneath the lower timeframe low and has regained it. Very likely we’ll be breaking upwards from here.
Meanwhile, experts predict historical bull runs, considering optimistic regulatory developments and institutional participation through crypto ETFs.
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