The beginning of the holiday’s season was very exciting for the cryptocurrencies market followers. As a matter of fact, it looks like the successful launch of Bitcoin futures in the Chicago based Cboe, has paved the way for other altcoins to further sprout, and flourish. The total market cap leaped over the $500 billion landmark today, fueled by an impressive altcoin surge.
As observed with Litecoin, Ripple went on a bullish run that has already accumulated a price rise of roughly 75% in just 24 hours. Ripple reached an all-time record high of $0.512 on coinmarketcap today, before retracing down to $0.45. As of press time, XRP went back on its upward trend, trading at $0.497. Beginning the year at just $0.0067, Ripple saw an impressive value increase of more than 7300%.
What is Ripple?
Developed in 2012, Ripple is both a real-time payment network and a cryptocurrency platform, based on a decentralized ledger. Its payment network baptized RippleNet, connects payment providers, digital asset exchanges, and corporates, allowing them to transfer money and other assets. The blockchain underpinning the network uses a “Proof of Correctness” consensus protocol, known as The Ripple Protocol consensus algorithm (RPCA).
XRP is the digital currency used for Payments through the network. It offers real-time payment settlements and an attractive 1,500 transactions per second capability.
Besides all of that, Ripple seems to offer an interesting bundle of features. In fact, with low transaction fees, and a very low energy consumed to transactions validated ratio, Ripple has already been adopted by world-class financial institutions. The Canadian RBC, the Spanish Santander, and the French Crédit Agricole are among a consortium counting over 60 banking institutions, all embracing Ripple’s blockchain.
With a market cap of over $18 billion, Ripple took over the fourth position occupied by the hyped Litecoin, further narrowing the gap with Bitcoin Cash.
Why has XRP spiked lately?
It all started when XRP began gaining attention thanks to a partnership with the giant Credit Cards provider, American Express. In fact, the latter has reportedly been actively looking to offer instant blockchain based payments. An article by Influencive on December 8 reads, the finally made official partnership, had already been hinted since mid-October, only to be officially disclosed by November 16.
On the other hand, Coinspeaker reported that Sumitomo Mitsui Banking Corp., Resona Bank, and two other major South Korean banks will start conducting payments in the next few days. If successful, RippleNet is set to carry their first international transfers by the spring of 2018. This announcement came after several Asian banks started extensively testing, and growingly embracing Ripple since the beginning of 2017. Major Japanese media outlets announced the news, pumping XRP prices to a new record high. South Korean exchanges Bithumb and Coinone accounted for over 42% of the last 24 hours trade volume, followed by Bittrex and Poloniex.
Speaking of the trading tendencies in the South Korean market, cryptocoinnews explained that investors there tend to move rapidly through word of mouth. When traders start buying a given asset, pushing its price higher, this would attract a tremendous number of additional investors, all fueled by the fear of missing out and encouraged by their peers’ advice. This would cause a short-term surge, after which a retracement will eventually follow.
What’s going to happen next?
It is fairy dust in the air lately in the cryptocurrencies market, with upswings of more than 30% often recorded. Ripple investors are undeniably among the happiest traders this week. However, dealing with a volatile market, it is very hard to predict the extent of the current upward price move. That being said, there sure still is plenty of room left for Ripple’s growth. Especially if Ripple succeeds in bringing more financial institution in, to adopt its advanced blockchain technology.