Ripple Labs Drops Its Appeal and Lawsuit Against the United States SEC

Ripple CEO Brad Garlinghouse confirmed the updates, ending a legal fight that began in December 2020.

The U.S. Securities and Exchange Commission (SEC) has dropped its appeal and lawsuit against crypto company Ripple Labs, marking a significant regulatory development.

The development sparked optimism in the cryptocurrency community, with remittance tokens leading the altcoin rebound.

Among the gainers was Stellar (CRYPTO: XLM), which saw its price surge by over 10%.

Here's a closer look at Stellar and why it could be outperforming other altcoins.

What Happened: Stellar and Ripple are similar in various ways. For instance, both have close ties to Jed McCaleb, who was an early contributor to Ripple before exiting to found Stellar in 2014.

"Sooo the man that founded Ripple, is the cofounder of stellar! Oh yea, and is partnered with SpaceX So maybe don't completely write off stellar ,” a user stated on X, formerly Twitter.

Further, both Ripple and Stellar handle similar purposes in global remittances. XRP allows financial institutions and banks to complete cost-friendly and quick international payments, and the company plans to launch its cryptocurrency wallet to ensure smooth transactions.

On the other hand, XLM prioritizes financial inclusion, allowing businesses and individuals to transact worldwide with fewer charges.

Stellar works with fintech firms, focusing on P2P transactions.

Both blockchains do not rely on Proof-of-Work mechanisms. XLM adopted SCP (Stellar Consensus Protocol), which depends on quorum to validate transactions.

On the other hand, XRP's RPCA (Ripple Protocol Consensus Algorithm) relies on trusted nodes for agreement.

Stellar and Ripple handle transactions quickly at minimal charges, making them key for remittance payments. This explains why XLM mirrors XRP's price actions amid significant developments.

Related Link: How A Final Score Is Reached In Stellar Consensus Protocol

What's Next For XLM, XRP Prices: The Stellar and Ripple tokens traded with substantial gains following the latest SEC decision to end Ripple's suit.

XLM painted its daily chart green after an over 10% price upswing. It trades at $0.2933, with a massive 24-hour trading volume signaling more gains.

XRP saw a remarkable jump from $2.23 to $2.55 at press time. The token is showing renewed trader and investor optimism with a 100% uptick in daily trading volume.

XLM and XRP look to extend prevailing gains before potential retracements. Meanwhile, broad market sentiments remain vital for the duo's performance in the coming sessions.

Digital assets displayed notable recoveries on Wednesday amid speculations of the Fed not tampering with interest rates. Bitcoin (CRYPTO: BTC) gained 3% to trade at $84,370, looking ripe for stable recoveries.

However, a solid candlestick closing above $85K is crucial for BTC to shift its short-term trajectory to bullish.

Michael van de Poppe highlighted that Bitcoin collected lower timeframe liquidity with the latest crash, signaling potential upside breakouts.

"Bitcoin took the liquidity beneath the lower timeframe low and has regained it. Very likely we’ll be breaking upwards from here."