The price value of Stellar (XLM) doubles over the day thanks to the Securities and Exchange Commission’s lawsuit against San Francisco-based Ripple.
CoinMarketCap data places XLM at $0.38 as it surges by over 100% in the last 24-hours. Due to outstanding performance of the cryptocurrency, the market capitalization has reached above $7 billion.
Some market observers think that the legal fight between the SEC and Ripple has benefitted Stellar the most. The SEC initiated the case against Ripple Lab and its executives for selling unregistered securities worth more than $1.3 billion. However, the leading team of the Ripple Lab is determined to fight the case in the court. Ripple CEO Brad Garlinghouse has rejected all allegations of the US regulator.
Transfer of Wealth
The crackdown of the regulatory authorities on the XRP resulted in significant liquidations and the coin has also lost its rank on CoinMarketCap. What’s more, many crypto exchanges have also delisted the cryptocurrency. Largest digital asset manager Grayscale has also removed Ripple from the large-cap crypto fund.
People have transferred their wealth to XLM because it is also a “modified fork of XRP.” So, the loss of XRP proves as profit for XLM.
Recently, big news came for XLM as Ukraine’s central bank asked for a help from the Stellar Development Foundation (SDF). The SDF will work with the central bank on creation of the central bank digital currency. According to Lauren Thorbjornsen, head of communications at Stellar Development Foundation:
“This is the beginning of the work together to help set the strategy for virtual assets and a path towards a CBDC, the issuance of which ultimately is the decision of the National Bank of Ukraine. SDF is acting as an advisor to the Ministry of Digital Transformation’s working group on the topic.”
The Office of the Comptroller of the Currency gave a green signal to banks. The banks can use private blockchains in payment operations. So, it is good news for Stellar as its blockchain is also payments-oriented.
According to CoinMarketCap, XLM ranks 9th based on the market capitalization. If it continues to show progress with same pace, it may capture the position of Bitcoin Cash (BCH) that is standing at 8th rank.
XRP, on the other hands, has also performed well in the daily trading session. It is exchanging hands at $0.24 after an increase of 7.63% over the day.