Bitcoin

Ripple price suffers while XLM price skyrockets 40% due to Ukrainian partnership

The XLM price is currently benefiting from Stellar’s announcement of a partnership with the Ukrainian government, joining the ranks as the latest entrant in the potential 2021 altcoin season.

Stellar (XLM) is winning the blockchain payment network battle against Ripple this week as sentiment turns in its favor.

Data from monitoring resource The TIE confirms that long-term sentiment toward XLM is significantly more positive than toward XRP. XRP is Ripple’s native currency, even though the company has always taken great pains to clearly differentiate itself from it. Without success, as current events show and it is undeniable that Ripple is by far the largest shareholder in XRP. This is exactly what doomed the company, but one man’s misfortune could be another man’s good fortune.

XLM sentiment surpasses XRP’s.

The numbers serve as the latest warning to XRP investors, who have watched in dismay as legal problems for Ripple in the United States caused the XRP price to plummet by over 60%.

Prior to the legal ramifications for the company, XRP sentiment was still at an all-time high. However, as of yesterday, January 5, TheTIE’s long-term sentiment score for XLM was above 70, while the score for XRP dipped below 70.

Ukraine deal boosts XLM into 2021 altcoin season.

Stellar received a boost this week in the form of a high-profile partnership with the government of Ukraine, under which it will help lawmakers digitize the national fiat currency, the hryvnia.

XLM/USD began to rise in response, rising 30% to $0.176 on Tuesday, approaching its highest level since November 2018, with last week’s transaction figures already hitting new record highs. The MACD indicator also signaled a change in trend, while the XLM price gained 46.1% in 3 days.

While it remains unclear to what extent the XLM token will be included in the solutions for Ukraine, Stellar executives have confirmed that the payment system will be an important part of the deal. Denelle Dixon, CEO and Executive Director of Stellar Development Foundation, wrote in a press release:

We look forward to working with the Ministry and other stakeholders to digitize the hryvnia, bring Stellar-based tools and services to the people and businesses of Ukraine, and open up new partnership opportunities in Ukraine for companies in the Stellar ecosystem.

If the native currency XLM is indeed included in the deal, it would certainly be a remarkable use case and a great success story in the cryptocurrency space.