XRP News Today: XLM and XRP Show 97% Price Correlation Driven by Cross-Border Payment Focus

XLM and XRP have shown a strong price correlation over the past decade, driven by their shared origins and mutual focus on cross-border payment solutions. This correlation is amplified by automated trading bots that react swiftly to news related to XRP, causing parallel price movements in XLM. Despite XLM leading in active addresses and total value locked (TVL), XRP retains retail dominance due to greater media exposure and optimism around a potential XRP ETF.

Over the past ten years, XLM and XRP have exhibited an unusually high price correlation, with correlation coefficients reaching as high as 0.97 over the past month and 0.87 over the past year. This persistent alignment is partly rooted in their shared history, as Stellar’s founder, Jed McCaleb, was a key Ripple team member before launching Stellar Development in 2014, receiving a substantial XRP allocation. This intertwined origin story influences investor sentiment, often leading to simultaneous evaluations of both tokens.

Automated trading bots further reinforce this correlation by responding instantly to XRP-related news. These bots execute trades across correlated assets like XLM within milliseconds, effectively synchronizing their price movements. Both cryptocurrencies also share a focus on enhancing cross-border payments, a sector gaining renewed attention following the US Federal Reserve’s adoption of the ISO 20022 messaging standard via Fedwire. This common use case underpins their market linkage, as investor Sushil Pathiyar aptly summarized: “Two currencies, but same use cases.”

While XRP continues to attract significant retail and institutional interest, XLM has demonstrated impressive growth in key on-chain metrics, challenging XRP’s dominance in certain areas. Artemis data from July 2025 shows XLM boasting approximately 80,000 daily active addresses, more than double XRP’s 33,000. Additionally, XLM’s total value locked (TVL) has surged past $137 million, eclipsing XRP’s TVL by a factor of two. This shift marks a significant milestone, as XLM’s TVL was previously below XRP’s in May 2025. Investor Gordon encapsulated this sentiment, stating, “XLM does everything XRP does. Just better.”

However, when evaluating broader market interest, XRP maintains a clear advantage. Google Trends data illustrates that XRP consistently outpaces XLM in search volume, reflecting stronger retail investor engagement. This disparity translates into trading volume, with XRP averaging over $6 billion daily compared to XLM’s $1.3 billion. XRP’s higher visibility is further bolstered by ongoing speculation about a potential XRP ETF approval and Ripple’s strategic political connections, factors that continue to drive retail enthusiasm.

The enduring price correlation between XLM and XRP reflects their intertwined histories, shared focus on cross-border payments, and the influence of automated trading strategies. While XLM leads in active addresses and TVL, XRP’s greater retail traction and media presence sustain its market prominence. Investors should consider these complementary strengths when evaluating both assets, as their futures remain closely linked within the evolving crypto landscape.