Stellar prices have reached their highest level in two years. Analysts say Ripple’s weakness and the US Securities and Exchange Commission (SEC) ‘s complaint about the digital currency are among the main reasons for Stellar’ s growth.
To Report CoinDesk, the price of Stellar has risen more than 36% in the last 24 hours and is currently in the range of $ 0.35. This is the highest price of Stellar since November 2018. On the other hand, Stellar’s trading volume coincided with this jump, accompanied by a significant increase.
Sui Chung, CEO of CF Benchmark, said in an interview:
The average trading volume of the Stellar / Dollar currency has more than doubled in the last 14 days.
Usually, when the trading volume increases at the same time as the price of a digital currency, analysts say that the jump will be stable.
Denis Vinokourov, senior director of research at Bequant, said in a statement that the increase in Stellar’s price was due to what had happened to Ripple. He went on to describe the importance of these events; Because Stellar is a kind of fork of Ripple.
Two weeks ago, the US Securities and Exchange Commission sued Ripple over the unauthorized sale of securities and the supply of unregistered XRPs. According to the commission, Ripple has raised $ 1.3 billion through this and will continue to do so. Ripple prices have fallen sharply since the official announcement of the US Stock Exchange Commission’s complaint. A few weeks earlier, Ripple had broken its multi-year high of $ 0.6. Ripple is priced at $ 0.28 at the time of writing. Experts believe that the challenges that Ripple is facing have led to more attention being paid to Stellar.
The recent decision of the US Federal Reserve (OCC) has not been ineffective in Stellar’s growth. The agency recently announced that US banks could use stable coins and Blockchainchain technology to settle their contracts. “Vinokorov says:
Given the dispute between Ripple and the US Securities and Exchange Commission, it does not appear to have benefited much from the CBD decision.
Two days ago, the Central Bank of Ukraine announced that it had signed a memorandum of understanding with Stellar to use a special version of the company’s blockchain to expand its infrastructure to provide a national digital currency. Of course, it should not be forgotten that information about Stellar’s role in the development of Ukraine’s banking infrastructure has not yet been released. Chang said in an interview:
There have been reports of the Ukrainian government selecting Stellar to build its national digital currency with the help of the company. This is very positive news for Stellar.
So far, many exchanges and investment companies have removed Ripple from their list of supported currencies. GarySkill, Bitwise and BitStamp are among these companies and exchanges.