According to CoinMarketCap data, the price of the cryptocurrency Stellar (XLM) has gained more than 100% today, reaching $ 0.38.
At the time of writing, XLM is trading at $ 0.3512, up 103.88%. This increase raised the token’s total market cap to over $ 7 billion, making it the ninth largest cryptocurrency.
According to some market experts, one of the main reasons for such a fluctuation may be the legal issues facing Ripple Labs, the company behind XRP. As is known, the US Securities and Exchange Commission (SEC) filed a $ 1.3 billion lawsuit against Ripple on December 22. Since then, the price of XRP has fallen and crypto exchanges token have begun to drop off their charts, creating even stronger downward pressure as a result. Currently, XRP is trading at $ 0.2335, about half the price before the lawsuit.
The SEC’s case could be good news for XLM, Denis Vinokourov, head of research at the London-based Bequant brokerage, told Coindesk. The reason behind this is that XLM is a modified fork of XRP. Therefore, XRP holders may be actively transferring their assets to XLM as it is a similar token.
Another positive development for XLM is the Stellar Development Foundation (SDF) announcement on Monday that it will help develop Ukraine’s central bank digital currency (CBDC). This is thought to have a positive effect on XLM price.
In addition, the Currency Supervisory Office (the U.S. Treasury Office that regulates banks) released a comment earlier this week saying banks can use stablecoin and blockchain for payments. Since Stellar is a payment-oriented blockchain, a series of events like this could be a very good storm for XLM.