Ripple’s XRP Rises 70% As Bitcoin Craze Sends Investors Into Hordes Of Smaller Cryptocurrencies

• The price of Ripple‘S XRP It gained up to 70% in extremely volatile exchanges on Tuesday, extending the broader cryptocurrency rally led by Bitcoin.
• As institutional investors allocate huge amounts of Bitcoin as a hedge against inflation, other market participants are looking for an alternative. cryptocurrencies – or altcoin.
• Ripple designed XRP to perform fast, less expensive, and more scalable alternative transactions.
• The latest token rally is also driven by a central bank push to digitize currencies.

Ripple’s XRP rose as much as 70% on Tuesday as the third largest cryptocurrency extended a rally that was started by mass interest in Bitcoin.

Ripple’s price has risen about four times since the start of the pandemic, making gains alongside Bitcoin, which rose 4% to an all-time high of $ 19,241 on Tuesday.

“XRP has been a speculative investment for a long time,” said Michael Anderson, co-founder of DeFi venture capitalist Framework Ventures. “Many partnerships have been announced but few practical applications.” The best cryptocurrencies have gained price momentum over the past week. Ethereum gained 30% and Bitcoin 8%, but XRP led the way with a 70% jump. Bitcoin’s rally this year was partly driven by its status touted as a hedge against inflation, which in turn could spread to other cryptocurrencies.

Investors pouring into Bitcoin, Ethereum, Ripple and other cryptocurrencies are looking to leverage the central bank’s rush to digitize currencies, especially the European Commission. ECB President Christine Lagarde previously said the bank is seriously considering a digital euro.

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The name “Ripple” plays a double role both as a payment exchange and as a currency. Ripple has designed XRP with the main goal of performing fast, cheap and more scalable alternative transactions which make it “extremely useful“for payments.

Ethereum, the second largest cryptocurrency by market cap, rose above $ 600 this week, hitting the two-year high of a major network upgrade to address scalability and security. The platform’s network update will introduce new decentralized finance products that create high-demand alternatives to traditional finance, which explains the rapid rise in valuations, Anderson said. As for Bitcoin, any run over $ 20,000 and profit-taking that comes after “isn’t a bad thing, it’s healthy for the market to push further,” according to Rich Rosenblum, chief of trading at crypto market maker GSR.

“It will pave the way for the first time for more long-term investors and existing holders to increase their allocations. There is still a lot of capacity among retail and institutional investors, this price action is likely the first step of a bull market poised for new levels of capital not seen in digital assets, ”said Rosenblum.

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