Is Stellar’s XLM a More Affordable Alternative to XRP Right Now?

Stellar’s XLM has emerged as an intriguing and more affordable alternative to Ripple’s XRP for many crypto investors, especially considering its recent surge and its correlation with XRP’s price movements. While XRP continues to attract significant attention as it nears its all-time high, Stellar has experienced a strong rally of its own, making it an appealing choice for those seeking a cheaper option in the same space.

In recent days, Stellar’s XLM price has risen to a high of $0.5146, marking its highest level since December 2, 2024. This represents an impressive 555% increase from its lowest point earlier in the year. Given this strong performance, many investors are now looking at XLM as a potential XRP alternative, especially as the two cryptocurrencies share several similarities.

One of the key reasons for this correlation is that both Ripple and Stellar operate in the cross-border payment sector, focusing on simplifying the way payments are made globally. Ripple’s technology, RippleNet, connects financial institutions worldwide to facilitate faster, cheaper transactions, with XRP acting as the bridge currency. Stellar, meanwhile, provides a network that enables companies to build their own payment solutions, and is also widely used for USD Coin (USDC) transactions. Stellar has even partnered with MoneyGram to allow users to send and receive USDC through the global money transfer service.

Moreover, both coins share a deep connection on a personal level. Stellar’s founder, Jed McCaleb, was a co-founder of Ripple, which is why XLM is often referred to as Ripple’s “cousin.” However, it is important to note that while the two share similarities, XLM is not a hard fork of XRP.

The strong correlation between XRP and XLM is further evidenced by recent data from CoinHedge, which shows that the two coins have a high correlation coefficient of 0.99 over the past week and 0.85 over the past 30 days. This means that when XRP experiences a price movement, Stellar often follows suit, making XLM an attractive alternative for those who believe in the potential of Ripple but are looking for a more affordable option to invest in.

The ongoing developments surrounding XRP, including speculation about a potential XRP ETF approval, could also have a positive impact on Stellar. If XRP were to secure an ETF approval, it is highly likely that Stellar could follow suit with its own ETF application. In fact, the Grayscale Stellar Lumens Trust, which already holds over $59 million in assets, could be a precursor to such an application. A successful Stellar ETF launch could drive even more interest in XLM, further boosting its price.

In terms of potential gains, XLM still has room to grow compared to XRP. Currently, Stellar’s price is 65% below its all-time high of $0.80, which it reached in 2021. This provides a significant opportunity for investors looking for potential upside. On the other hand, XRP is already close to its all-time high, meaning there may be limited room for further growth in the short term.

Chart analysis also suggests that XLM is well-positioned for further gains. The weekly chart shows that XLM has formed a golden cross pattern, where the 50-day moving average crosses above the 200-day moving average. This is a widely recognized bullish indicator in technical analysis and often signals a continuation of upward momentum. Additionally, XLM is currently attempting to retest its 2024 high of $0.6350. If it successfully closes above this level, it could pave the way for even greater gains, potentially pushing XLM towards its previous all-time high.

For investors looking for exposure to the cross-border payment space but at a more affordable price point, XLM presents a strong case. Its lower price relative to XRP, coupled with its bullish technical indicators and ongoing developments in the crypto sector, make it an appealing option for those who believe in the future of blockchain-based payment solutions. Additionally, if XRP continues to perform well and XRP-related developments, such as an ETF approval, help lift the broader market, Stellar’s XLM could benefit from this momentum and see further price appreciation.

In conclusion, while Ripple’s XRP remains a prominent player in the cryptocurrency market, Stellar’s XLM offers a more budget-friendly alternative with similar potential for growth. With both coins tied to the same industry and benefiting from similar macroeconomic factors, investors may find that XLM offers a more attractive entry point for those seeking exposure to cross-border payments and blockchain-based financial solutions. As XLM continues to gain momentum, it could very well retest its all-time high, presenting further opportunities for investors looking to capitalize on the ongoing rally.