XRP (from Ripple) and XLM (Stellar Lumens) have maintained a strong price correlation over the years, with a high correlation coefficient.
A historical reason behind this correlation lies in their shared founder: Jed McCaleb. When McCaleb left Ripple in 2014, he launched the Stellar Development Foundation.
While XRP Ledger operates on the Ripple Protocol Consensus Algorithm (RPCA), Stellar runs on the Stellar Consensus Protocol (SCP). Both systems share a similar technological foundation. Neither uses Proof-of-Work (PoW), allowing for fast speeds and low transaction costs.
Additionally, both altcoins are considered 'Made in USA', and each has a market capitalization exceeding 2 billion dollars. In 2025, the U.S. crypto regulatory environment improved significantly under President Trump's leadership, which has helped give these altcoins a psychological edge in the market.
On the other hand, both projects aim to promote global financial access, even if they adopt different approaches. XRP and XLM focus on low-cost cross-border payments.
Due to these shared traits, many investors have shown interest in XLM and XRP, forming a common user base in the two projects.