Stellar price surging by 89% over the past 24 hours because of XRP’s misfortunes and the future with Ukrainian CBDC
Stellar price has risen significantly to $ 0.32, recording an 89% gain over the past 24 hours. Meanwhile, nearly 100 million XLM were transferred with the participation of the SDF. One of the reasons for the strong increase in XLM is due to news about the future CBDC Ukraine. So why this news has caused XLM to increase strongly, please stay tuned?
Stellar price | Source: CoinMarketCap
Stellar price shows a staggering 89% gain over the past 24 hours, up to $ 0.32
XLM is a native token of payments-focused Stellar blockchain. Among them, the rally is said to be driven by rival cryptocurrency XRP’s misfortunes and the U.S. Office of the Comptroller of the Currency’s (OCC) recent guidance on stablecoins.
On Dec. 22, the SEC filed a lawsuit against Ripple Labs, Ripple Labs, a San Francisco-based developer of the Ripple payment protocol and exchange network, for raising $1.3 billion over a seven-year period to retail investors through its sale of XRP. Since then, the price of XRP has halved to near $0.20 and the crypto community is speculating that funds are being rotated out of XRP into XLM.
Further, XLM seems to be benefitting from the U.S. OCC’s recent decision to allow U.S. banks to use public blockchains and dollar-backed stablecoins as a settlement infrastructure in the financial system.
In addition, XLM is continuing to rise following Stellar’s announcement earlier this week that it’s helping Ukraine develop a central bank digital currency (CBDC). A memo of understanding and cooperation, according to the press release, was signed on Dec. 28 between the Stellar Development Foundation and Ukraine’s Ministry of Digital Transformation.
The memo stated that Stellar would assist in the creation of the digital asset market in the country, support projects linked to digital assets, help develop regulations for stablecoins in Ukraine, and assist in the development of the local CBDC with the Central Bank of Ukraine.
Even though Ukraine has since downplayed the importance of Stellar’s role and that the XLM coin would play no part in the CBDC, it apparently hasn’t stopped some investors from buying the token.
CF Benchmark’s Chung stated:
“It was reported that the Ukrainian government selected the Stellar blockchain network to build its prospective CBDC. This is turning into a perfect storm for XLM.”
According to Whale Alert, over the past 16 hours, large amounts of XLM have been transferred. In the course of 11 transactions, 99.3 million XLM was transferred both to crypto exchanges and between anonymous wallets. The majority of XLM was moved with the participation of Coinbase.
Further, a small amount of XLM (5 million XLM) was wired by the Stellar Development Foundation to an unknown digital wallet.
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