XRP and XLM: Why Are Their Prices Moving in Sync? A Deep Dive into the Crypto Twins
- Why Do XRP and XLM Prices Move Together?
- 3 Key Reasons Behind the Correlation
- XLM vs. XRP in 2025: Who’s Winning?
- FAQ: Your Burning Questions Answered
Over the past decade, XRP (Ripple) and XLM (Stellar) have exhibited an uncanny price correlation, often mirroring each other’s highs and lows. This article explores the reasons behind this phenomenon—from shared origins and automated Trading Bots to overlapping use cases in cross-border payments. We’ll also compare their 2025 performance metrics, including active addresses, TVL, and trading volume, to determine which asset might have the edge. Spoiler: The rivalry is closer than you think.
Why Do XRP and XLM Prices Move Together?
For over 10 years, XRP and XLM have danced to the same tune. CoinMarketCap data reveals their price trends are nearly identical, with correlation coefficients of 0.97 (1-month) and 0.87 (1-year) per DefiLlama. Even Ripple’s CTO David Schwartz admitted in August 2024: “I have no idea what drives XRP’s price—it just tracks XLM’s market value incredibly well.”
3 Key Reasons Behind the Correlation
1. Shared DNA: The Jed McCaleb Factor
Stellar’s founder Jed McCaleb was part of Ripple’s founding team before leaving in 2014—with 9 billion XRP in tow. Investors often view both assets through the lens of their intertwined histories. “Two coins, but the same use case,” notes crypto investor Sushil Pathiyar.
2. Trading Bots Amplify the Link
Software engineer Vincent Van Code highlights how algorithmic traders react to XRP news by simultaneously buying/selling XLM within milliseconds. This creates a feedback loop that tightens the correlation.
3. ISO 20022 and Cross-Payment Synergy
Both tokens gained attention when the U.S. Federal Reserve adopted ISO 20022 messaging via Fedwire. Their shared focus on remittances means macroeconomic shifts affect them similarly.
XLM vs. XRP in 2025: Who’s Winning?
This year’s data paints a nuanced picture:
| Metric | XLM | XRP |
|---|---|---|
| Price Growth (July 2025) | +100% | +35% |
| Daily Active Addresses | 80K | 33K |
| TVL | $137M | $68.5M |
| Daily Trading Volume | $1.3B | $6B+ |
While XLM leads in on-chain activity, XRP dominates retail interest—Google Trends shows XRP searches are 3x higher. XRP also benefits from ETF speculation and Ripple’s political connections. As investor Gordon puts it: “XLM does everything XRP does, but better. Yet XRP has the brand power.”
FAQ: Your Burning Questions Answered
Will XLM ever decouple from XRP?
Unlikely soon. Their correlation is sustained by market psychology, shared use cases, and algorithmic trading.
Which is the better investment?
This article does not constitute investment advice. That said, XLM offers stronger on-chain metrics, while XRP has higher liquidity and mainstream recognition.
How do trading bots affect prices?
Bots exploit microsecond delays in arbitrage opportunities between correlated assets, creating artificial price symmetry.
