Stellar (XLM) is now ranked 9th on Coinmarketcap with Chainlink in the 10th position
Stellar (XLM) initially fell to $0.11 after news broke of the SEC suing Ripple
The digital asset has since set a two-year high of $0.418 due to news of Ukraine using the Stellar network to issue its own digital currency
Altcoins have been in the green this week with Stellar (XLM) leading the pack into what has resulted in the digital asset making an entry into the top 10 on Coinmarketcap. At the time of writing, Stellar is ranked 9th on Coinmarketcap with Chainlink in the number 10 spot. Below is a screenshot of the second half of the top ten digital assets on Coinmarketcap, demonstrating the rise of Stellar (XLM).
Stellar Initially Took a Nosedive due to the SEC suing Ripple
From the screenshot above, it can be observed that Stellar has had triple-digit gains of 171.6% in the last week. However, the genesis of Stellar’s impressive performance can be linked to the announcement of the SEC suing Ripple due for carrying out an unregistered securities offering.
The fact that XRP and Stellar share many similarities led many to believe that XLM would be next on the chopping board of the SEC. As a result, Stellar dropped in tandem with XRP with XLM hitting a local low of $0.11 on December 23rd.
Ukraine Government Taps the Stellar Foundation for a National Digital Currency
Stellar’s dip was short-lived as its value stagnated at the $0.13 price area till the 4th of this month when the Ukraine government picked the Stellar Development Foundation to assist in building a national digital currency. Stellar has since set a 2-year peak value of $0.418 earlier today as a result of the news. This move to the local high is an impressive 220% increment since the Ukraine news broke and a 280% increment since December 23rd.
Is Stellar Now is Safe from the SEC?
At the time of writing, Stellar (XLM) is trading at $0.34 and has surpassed XRP in dollar value. The latter remittance coin is trading at $0.30.
Traders and investors who were die-hard XRP fans might have shifted focus to XLM as the Stellar Foundation has been in talks with numerous governments and institutions with respect to issuing CBDCs (Central Bank Digital Currencies).
Although the use of XLM is not guaranteed by these governments, having CBDCs on the Stellar blockchain or a fork of the network, is particularly bullish in the sense that it removes any fear that the SEC will go after the project.