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- Flare Network will distribute 100 billion Spark tokens to XRP users.
- The price of XRP is skyrocketing as traders buy tokens to qualify for the airdrop.
Ripple’s XRP changes hands at $ 0.64, having gained over 6% on a daily basis and over 110% on a weekly basis. The coin hit a multi-year high at $ 0.7824 on November 24, but failed to hold the position as speculative traders started taking their profits. Despite the withdrawal, XRP is one of the best performing altcoins in the top 10.
XRP is currently the third largest digital asset with a current market value of $ 29.3 billion and an average daily trading volume of $ 32 billion.
The Flare Network airdrop fuels the growth of XRP
As previously reported by FXStreet, the San Francisco-based blockchain startup token enjoyed a steady stream of positive news that created a bullish environment and sent the price to its highest level since September 2018.
However, there may be another huge catalyst behind the impressive rally. Smart contract platform Flare Network has announced the airdrop of 45 billion of its brand new “spark” tokens to XRP holders. The distribution will be based on the snapshot of XRP addresses taken on December 12th.
According to Jehan Chu, managing partner of Hong Kong-based blockchain investment firm Kenetic Capital, the upcoming airdrop fuels the XRP bull market and drives the Ripple community into a frenzy.
Flare is a blockchain network based on the Flare Consensus protocol that integrates with the Ethereum virtual machine and allows you to run decentralized applications (dapps) of Ethereum within the XRP ecosystem.
The team also announced that Ripple-related accounts and cryptocurrency exchange accounts that do not support the airdrop would be excluded from the snapshot.
The team further explained in the blog post:
In addition to Ripple inc and non-participating exchanges, there are some groups that are completely excluded from distribution. These are Jed McCaleb and the accounts known to have received XRP as a result of fraud, theft and scams.
The list of exchanges that support the airdrop is already available on the project website. Includes Bithumb, Bitstamp, Coinfiedl, Coinone, Upbit, Crypto.com, Youholder, and many more.
Flare’s native token is an XRP utility fork with pricing based on supply and demand. However, according to preliminary estimates, it will cost around $ 0.01 at first. The total issue is 100 billion tokens.
Traders are buying XRP to qualify for the airdrop
The number of new accounts created on XRP Ledger has increased from 1,300 to over 8,000 in less than two days, according to data source XRPScan.
Number of new XRP accounts
Other on-chain metrics are also skyrocketing as cryptocurrency traders are buying XRP tokens ahead of the airdrop to receive free tokens distributed by Flare. The market often goes crazy pumping the coin before the event; however, the dump is also imminent once the airdrop is finished.
According to Phillip Gradwell, chief economist at Chainanalysis, XRP’s trade influx has grown along with the token’s price. XRP holders have transferred nearly 2.3 billion tokens to exchange accounts since Saturday. Typically, this is a disturbing sign for the business, as it means investors want to cash in on their assets.
XRP / USD, 4-hour chart
XRP is currently grossly overbought. Once the market starts rolling out excessive longs, XRP could fall like a stone with the first support at $ 0.5. Once broken, the decline could be extended to $ 0.38 and $ 0.31. A sustainable move below this area will reverse the recent rally and invalidate the immediate bullish scenario.
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