XLM Dominates XRP with 70% Rally... 'Ripple Supporters Have No Choice But to Be Frustrated'

▲ XRP, Stellar (XLM)/AI-generated image

As Stellar (XLM) launched a 70% rally within a week, dominating XRP, the long-standing rivalry between the two projects has once again come to the forefront of the cryptocurrency market.

According to U.Today, a cryptocurrency specialized media outlet, on May 31 (local time), XLM recorded a massive double-digit surge based on CoinGecko data, creating a clear gap with XRP, which showed a stagnant trend. This surge was directly catalyzed by a significant advancement related to tokenization from the Stellar network.

The XLM rally gained momentum after the official announcement from DTCC and the Stellar Development Foundation (SDF). Both parties agreed to collaborate to enable the direct tokenization of traditional financial assets held by DTCC on the public Stellar blockchain. This project aims to verify whether public blockchain tokenization is suitable for highly liquid institutional-grade assets.

Stellar is a project founded by Ripple co-founder Jed McCaleb, and it has targeted cross-border payment use cases similar to XRP. For this reason, the two tokens have been grouped as prominent competitors in the market. Immediately after the DTCC-related news broke, some critics, targeting XRP supporters, reacted by stating that this achievement would place a significant burden on the Ripple camp.

However, pro-XRP legal commentators and investors immediately drew a line against interpreting XLM's surge as a defeat for XRP. They argued that one should look at the structural differences between the two networks, stating that XRP is specialized in deep liquidity provision and is an asset with different objectives than XLM. While XLM's surge attracted market attention, the XRP camp maintains that it cannot be viewed as a simple win-or-lose situation.

On-chain data shows that XRP investor sentiment has already been significantly shaken. According to market intelligence firm Santiment, XRP recorded its largest exchange inflow of the year on Thursday, with over 22.8 million XRP moving to trading platforms. This large inflow occurred at a localized low point where XRP reached a 15-week low. Subsequently, over 25.24 million XRP moved from exchanges to self-custody wallets, revealing a market trend of simultaneous fear selling and bottom-buying movements.

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