Ripple (XRP) price consolidated around $2.40 on Thursday, marking an 11% increase since the start of the week, with technical indicators also signaling a surge in Stellar (XLM). The crypto market has experienced significant volatility this week following the release of the United States Consumer Price Index (CPI) data, which came in hotter than expected.
The initial market reaction to fears of tighter monetary policy sent shockwaves through risk-on assets, triggering sell-offs across a range of digital currencies. However, both XRP and XLM have shown remarkable resilience, achieving double-digit gains despite the broader macroeconomic concerns.
Ripple (XRP) vs. Stellar (XLM) Performance
While other major cryptocurrencies such as Bitcoin, Ethereum, and Solana have struggled to maintain their early-week levels, both XRP and XLM have continued to advance, registering notable gains over the past four days. XRP crossed the $2.40 mark, rising 11% from its opening price of $2.15 on Monday, while XLM surged 13.5%, consolidating just below the $0.35 range. These performances highlight the strong bullish drivers behind these two tokens, setting them apart from other layer-1 assets.
XRP’s On-Chain Growth Amid Gensler’s Departure
On-chain data reveals another key factor contributing to XRP’s strong performance: a significant increase in network adoption. Since Gary Gensler’s farewell interview on January 14, XRP addresses have grown by over 200,000, from 6.4 million to 6.6 million. This surge in user adoption follows increased market confidence following Gensler’s departure from the SEC, which some investors view as a sign of a more favorable regulatory environment for Ripple.
This growing adoption is expected to drive further price appreciation for XRP for several reasons. An expanding address base typically correlates with higher transaction volumes and liquidity, strengthening the network’s overall value. Increased user activity on the XRP ledger could also attract more institutional investors, especially if the new wallets represent long-term holders or institutional players.
XLM Follows XRP’s Lead in Market Uptrend
The strong correlation between XRP and XLM is well-established, with both projects founded by Jed McCaleb and sharing a focus on efficient, low-cost cross-border transactions. Historically, XLM tends to follow XRP’s price movements during bullish phases, and the current rally is no exception. As XRP continues to climb, it’s likely that XLM will maintain its upward momentum, as evidenced by its 13.5% gain this week despite broader market turbulence.
In conclusion, while the crypto market grapples with macroeconomic challenges, Ripple (XRP) and Stellar (XLM) have proven resilient, supported by strong technical factors and positive network growth. With institutional adoption on the rise and a favorable shift in regulatory sentiment, both tokens could continue their ascent in the weeks ahead.
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