Although many players in the blockchain industry prioritize maximizing throughput, Alex Mizrahi, co-founder of Chromaway, believes providing users with a transparent, secure, and decentralized computing environment is still equally important. So while blockchain projects aspire to satisfy the basic need to transact, Mizrahi emphasizes that establishing consensus among nodes should not be the sole goal. […]
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Hoskinson Laments the Disconnect Between Public Perception of Cardano and Its Fundamentals
The Cardano blockchain co-founder, Charles Hoskinson, has expressed frustration over what he perceives as a disconnect between the public perception of Cardano—shaped by influencers and media—and the project’s actual progress and fundamentals. Hoskinson highlighted technological advancements such as Hydra, the development of partner chains, and many community events as some of Cardano’s achievements. Despite these […]
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Associate Professor Rejects Alleged Link Between Nigerian Currency Depreciation and Crypto Trading
Nigeria’s decision to halt naira trading on cryptocurrency exchanges is likely to worsen matters for its volatile currency,” an associate professor at the University of East London has argued. The associate professor said Nigeria can effectively regulate the cryptocurrency industry through a framework introduced by its securities regulator in 2022. Crypto Trading Not Linked to […]
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Ripple CTO Addresses Curious Price Link Between XRP And XLM
In an exchange on X, Ripple‘s Chief Technology Officer (CTO), David Schwartz, also known as JoelKatz, responded to queries about the strikingly similar price movements of XRP and Stellar (XLM). This discussion has brought to light not just the intertwined market dynamics of these two major cryptocurrencies but also the complex factors influencing their valuation.
Curious Correlation Between XRP And XLM
Schwartz candidly addressed a post by Good Morning Crypto, who highlighted a long-term price chart comparison between XRP and XLM since 2014, questioning the “unnatural price symmetry” and the potential for both to “breakout together during this bull run.” Schwartz replied, “I genuinely don’t know. The thing that I think is most likely is that both prices are driven primarily by factors completely outside their ecosystems.”
However, Schwartz also acknowledged conflicting evidence to his theory. When pressed for specifics regarding the unusual correlation, he pointed to the significant event of Stellar burning half of their token supply, which surprisingly did not impact their price or disrupt the price correlation pattern with XRP. “The one bit that’s the most convincing to me is that Stellar burned half their supply and there wasn’t so much as a blip on their price chart or any real deviation from XRP’s price correlation,” Schwartz explained.
This dialogue underscores a broader narrative within the cryptocurrency sector, where XRP and XLM share not only a founder in Jed McCaleb but also similar technological frameworks aimed at streamlining cross-border payments. Despite these overlaps, the absence of a price impact post-Stellar’s token burn has been a particularly puzzling aspect for analysts and the crypto community alike.
Both XRP and XLM have historically mirrored each other’s price movements, potentially due to overlapping use cases, investor behaviors, and market perceptions. As financial tools facilitating quick, cross-border transactions with minimal fees, both have attracted similar investor bases looking for alternatives to traditional banking hurdles.
Market sentiment plays a significant role. News impacting one of the cryptos can quickly spill over to the other due to their perceived substitutability. Additionally, regulatory shifts in one can inadvertently sway investor sentiment towards the other.
Popular pro-XRP lawyer Bill Morgan commented on this, “I don’t know what causes it but it shows how useless Ripple burning the escrow would be. Stellar burned XLM and Ripple did not burn XRP and it had no impact on the symmetry. Same for the lawsuit. No impact overall. Stellar was not sued. Factors external to either blockchain and not specific to either Ripple or Stellar must be the explanation.”
The ongoing debate includes speculation about whether XRP and XLM will jointly make significant gains in an anticipated bull run. Historical price patterns suggest a high level of correlation, but as Schwartz indicates, external factors such as global market conditions and macroeconomic factors are likely at play.
At press time, XRP price stood at .5282.
Novogratz Predicts Bitcoin Trading Between $55K-$75K This Quarter
Bitcoin is expected to trade within a narrow range this quarter, according to Michael Novogratz, founder of Galaxy Digital Holdings Ltd. “Bitcoin, ethereum and everything else, solana will consolidate,” he said last week, adding that it means BTC will probably trade “somewhere between ,000 and ,000 until the next set of circumstances, the next set […]
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Glassnode Report Highlights Diverging Performance Between Bitcoin and Ethereum
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Ethereum Technical Analysis: ETH Teeters Between Bullish Breakout and Bearish Continuation
As ethereum fluctuates within a wide trading range from ,991 to ,266 on April 15, 2024, key technical indicators and chart patterns suggest a nuanced but potential shift in market sentiment. Despite a bearish trend over the past week, recent oscillator and moving average signals point towards a possible bullish reversal. Ethereum The relative strength […]
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Next Bitcoin Halving to Propel Prices to Between $150,000 and $169,000, Says Bitfinex
A new analysis by Bitfinex researchers predicts a 160% surge in bitcoin’s price in the upcoming 12-14 months, potentially reaching over 0,000 per unit. This forecast, derived from historical data and statistical models related to previous Bitcoin halving events, suggests a bullish future for the world’s leading digital currency. Bitfinex Researchers See Bitcoin Soaring Past […]
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Standardization of Blockchain Data Format Enhances Interoperability Between Chains – Nick Yushkevich
According to Nick Yushkevich, standardization of blockchain data formats is crucial as it enhances the interoperability of distinct protocols and fosters broader adoption of the technology. Yushkevich, the director of product at blockchain infrastructure provider Quicknode, added that such standardization helps to improve communication between systems. Unlocking the Full Potential of Blockchain Data Yushkevich stated […]
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Ethereum Technical Analysis: ETH Caught in a Tug of War Between Bulls and Bears
Ethereum presents a mixed bag of signals as of March 25, 2024. Amid fluctuating trading volumes and a contested market direction, ether’s price settled at ,487 after experiencing an intraday range of ,335 to ,503. With a market capitalization of 5 billion and a 24-hour trading volume of .14 billion, traders alike are keenly observing […]
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