The Stellar altcoin (XLM) has been rising aggressively this week, with the coin now trading at its highest level since mid-2018.
XLM surpassed $0.3 on Wednesday, January 6, the last time Profit Revolution the digital currency was at this level was in July 2018. In the past 24 hours, its market capitalisation has jumped 50% to $7.5bn. The coin has risen to eighth place in CoinMarketCap’s ranking of the largest cryptocurrencies.
The key driver of Stellar’s growth was the partnership agreement between the Ukrainian authorities and the developers of the altcoin.
However, there is another reason for the soaring price of the coin, according to Bequant CEO Denis Vinokurov. He recalled that XLM is a modified fork of XRP.
Ripple’s startup problems forced many altcoin holders to sell the instrument. As a result, XRP lost a large number of investors, some of whom moved to Stellar in recent days.
Ukrainian government officials denied earlier reports that Stellar’s blockchain would be used to deploy the digital hryvnia (CBDC).
The Ministry of Digital Transformation confirmed that cooperation with the developers of the altcoin will indeed take place. However, it is not so much aimed at launching the token, but rather at cooperation in creating conditions for a more accelerated development of the cryptocurrency industry in Ukraine.